Oil at $22 a barrel, when do we get .97 cent gas?

S2007S said:
Looks like will get gas under $1.00 a gallon once oil slips below $15 ...still paying $2.50 which is ludacris after oil has dropped from $50 to nearly $20,a barrel. Always quick to raise oil prices but slow as a turtle to lower them. Oil could slip to single digits when deep recession comes!!!



https://www.cnbc.com/2020/03/18/oil-plummets-to-near-18-year-low-on-pace-for-worst-month-ever.html
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You have to shop around and look for the generic stations.

We are down to $2.05 at something like Racestar while Exxon was at $2.40.

Probably same gas...
 
so them boys aint pushing the oil story no more.... completely forgotten as that was used for only couple of days.... then corona completely taking over.

all bs.
 
Oil will not go back up until Saudi/Russia feel it in their pockets (i.e. cost more to drill it than to sell it) and demand picks up for travel ad transportation again. June should be good for recovery.
 
speedo said:
Doesn't cost any less to produce and refine....somewhat less to distribute.
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Refineries will tell you there is a per barrel oil cost that when it gets below that they start to lose money on exploration, drilling and recovery. That is when they start shutting down rigs and slowing down production.
 
Tony Optionaro said:
This and the fact that you pay a lot of taxes for a gallon of gas.
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Yeah, half of states have a gas tax of $.30/gal or more, in PA it's $58.7.

Actually accounting for inflation gas has remained remarkably static in price. For example in high school I distinctly remember $.99/gal gas (late 80s/early 90s), plug that into the inflation calculator and you get $2.00 which is what it cost in that part of the country 3 months ago.
 
I can't see it dropping much farther. IMHO, the correction is getting ahead of itself. The 2x ETF fund I like to play around with is now 9% of what it was in January. I just bought 1,000 shares for just over $2K, and it would have cost me $22K in January...that's just ridiculous. We're still going to need oil...the Saudis can't ramp up enough to supply that much.
 
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