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I just paid $2.97 / gal for gas! Hoo-ray!?

Old 12-15-14, 03:29 PM
  #126  
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

Today was the first day where I was consistently seeing <$3. Still more than you guys but $1 better than it was a couple years ago
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Old 12-15-14, 04:49 PM
  #127  
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

some place was selling it at $1.99 a gallon today. i think it was some sort of promo. of course there were lines. lowest i've seen now is $2.29/gallon. that's pretty damn good. basically a $1 less per gallon than even this summer. hopefully it can drop to the sub $2 again.
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Old 12-15-14, 10:55 PM
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

2.49. If it keeps going down, then something fishy is going on, like the powers that be know something we don't.

The US oil export ban is ending next month? So they can sell oil to the Japanese at higher prices?

The Fed is definitely concerned. It's like the housing market collapse. Now they can't raise interest rates as big oil's decline is costing the US economy and deflating prices.
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Old 12-16-14, 06:12 AM
  #129  
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

I just lost more value on paper in my Apple stock than all the gas I could have bought over the next 3 years at $4.00.
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Old 12-16-14, 06:21 AM
  #130  
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

Originally Posted by Brian Shannon View Post
I just lost more value on paper in my Apple stock than all the gas I could have bought over the next 3 years at $4.00.
On a similar note, my financial guy called me yesterday and had me dump a bunch of stocks due to the this oil thing.
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Old 12-16-14, 06:32 AM
  #131  
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

Originally Posted by Brian Shannon View Post
I just lost more value on paper in my Apple stock than all the gas I could have bought over the next 3 years at $4.00.
Good news/bad news. Your stock value will come back, gas will get back to $4 at some point.

When companies start realizing the increased profits from lower gas prices it will eventually have positive effect on the market. Everyone from food, UPS, airlines, truckers, municipal budgets and more all benefit from lower fuel costs.
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Old 12-16-14, 07:37 AM
  #132  
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

Originally Posted by JimRochester View Post
Good news/bad news. Your stock value will come back, gas will get back to $4 at some point.

When companies start realizing the increased profits from lower gas prices it will eventually have positive effect on the market. Everyone from food, UPS, airlines, truckers, municipal budgets and more all benefit from lower fuel costs.
Until jobs are lost, projects are cancelled, tax revenue declines and Russia crashes. Lower fuel for airlines wont help because people will drive if they have a choice.

People should be very careful for what they wish for and try to look at the big picture.
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Old 12-16-14, 08:11 AM
  #133  
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

Originally Posted by Brian Shannon View Post
Until jobs are lost, projects are cancelled, tax revenue declines and Russia crashes. Lower fuel for airlines wont help because people will drive if they have a choice.

People should be very careful for what they wish for and try to look at the big picture.
I don't necessarily know about that. If I can get somewhere cheap by flying rather than spending hours upon hours in a car, I'd strongly consider flying. That's why I don't drive to Vegas anymore. It's only a 5 hour drive from Phoenix, but I can get flights under $150 nearly all year round.
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Old 12-16-14, 08:25 AM
  #134  
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

$2.13 at a regular station w/o any rewards program.
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Old 12-16-14, 11:55 AM
  #135  
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

Originally Posted by Deftones View Post
On a similar note, my financial guy called me yesterday and had me dump a bunch of stocks due to the this oil thing.
Buy high sell low. Brilliant.
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Old 12-19-14, 09:43 AM
  #136  
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

Just drove by a Quick Trip at $1.99
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Old 12-19-14, 09:52 AM
  #137  
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

Saw $1.98 this morning.
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Old 12-19-14, 10:17 AM
  #138  
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?



Damn, looks like Joplin wins.
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Old 12-19-14, 10:22 AM
  #139  
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

I spoke too soon. Just saw $1.97 at a Conoco.
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Old 12-19-14, 10:27 AM
  #140  
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

We're getting dangerously close to this.

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Old 12-19-14, 10:35 AM
  #141  
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

Originally Posted by kenbuzz View Post


Damn, looks like Joplin wins.
My parents live in Joplin - I'll have to check with them.
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Old 12-19-14, 10:45 AM
  #142  
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

Originally Posted by trespoochies View Post
We're getting dangerously close to this.

I'd have to get dangerously close to my monitor in order to read that.
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Old 12-19-14, 11:05 AM
  #143  
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

Here it is all big.

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Old 12-19-14, 11:41 AM
  #144  
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

Great article on the history of Saudis crashing the oil market.

On January 2, 1977, the Shah of Iran made a painful admission about his country’s economy. “We’re broke,” he confided bluntly to his closest aide, court minister Asadollah Alam, in a private meeting. Alam predicted still more dangers to come: “We have squandered every cent we had only to find ourselves checkmated by a single move from Saudi Arabia,” he later wrote in a letter to the shah. “[W]e are now in dire financial peril and must tighten our belts if we are to survive.”

The two men were reacting to recent turmoil in the oil markets. A few weeks prior, at an OPEC meeting in Doha, the Saudis had announced they would resist an Iran-led majority vote to increase petroleum prices by 15 percent. (The shah needed the boost to pay for billions in new spending commitments.) King Khalid bin Abdulaziz Al Saud argued that a price hike wasn’t justified when Western economies were still mired in a recession — but he was also eager to place economic constraints on Iran at a time when the shah was ordering nuclear power plants and projecting influence throughout the Middle East. So the Saudis “flooded the markets,” ramping up oil production from 8 million to 11.8 million barrels per day and slashing crude prices. Unable to compete, Iran was quickly driven from the market: The country’s oil production plunged 38 percent in a month. Billions of dollars in anticipated oil revenues vanished, and Iran was forced to abandon its five-year budget estimates.

A damaging ripple effect persisted: Over the summer of 1977, industrial manufacturing in Iran fell by 50 percent. Inflation ran between 30 and 40 percent. The government made deep cuts to domestic spending to balance the books, but austerity only made matters worse when thousands of young, unskilled men lost their jobs. Before long, economic distress had eroded middle-class support for the shah’s monarchy — which collapsed two years later in the Iranian Revolution.

Today, oil prices have again plummeted, from a high of $115 per barrel in August 2013 to under $60 per barrel in mid December 2014. Western experts, predictably, have seized the opportunity to ponder what cheaper oil might mean for the stock market. As for why prices have dropped, some analysts have suggested it has little to do with any manipulation of Saudi spigots: A December essay in Bloomberg Businessweek credited the American shale revolution with “breaking OPEC’s neck.”

There’s no doubt that shale has eroded Saudi Arabia’s “swing power” as the world’s largest oil producer. But thanks to their pumping capacity, reserves, and stockpiles, the Saudis are still more than capable of crashing the oil markets — and willing to do so. In September 2014, they did just that, boosting oil production by half a percent (to 9.6 million barrels per day) in markets already brimming with cheap crude and, a few days later, offering increased discounts to major Asian customers; global prices quickly fell nearly 30 percent. As in 1977, the Saudis instigated this flood for political reasons: Whether foreign analysts believe it or not, oil markets remain important venues in the Saudi-Iranian struggle for supremacy over the Persian Gulf.

This isn’t the first time since the late 1970s that Saudi Arabia has used oil as a political weapon against its rival. In November 2006, Nawaf Obaid, a Saudi security consultant connected to Prince Turki al-Faisal, then Saudi Arabia’s ambassador to Washington, wrote an op-ed in the Washington Post noting that if “[i]f Saudi Arabia boosted production and cut the price of oil in half … it would be devastating to Iran … [and] limit Tehran’s ability to continue funneling hundreds of millions each year to Shiite militias in Iraq and elsewhere.” Two years later, at the height of the global financial crisis, the Saudis acted: They flooded the market, and within six months, oil prices had fallen from their record high of $147 per barrel to just $33. Thus, Iranian President Mahmoud Ahmadinejad began 2009, an election year, struggling with the sudden collapse in government oil revenues and forced to slash popular subsidies and social programs. The election’s contested outcome was accompanied by economic contraction and the worst political violence in Iran since the fall of the shah.

Signals of a new flood emerged as early as June 2011. While addressing an audience of senior American and British officials at a NATO operations base, Prince Turki warned Iran not to take advantage of the regional unrest triggered by the Arab Spring. Paraphrasing some of Turki’s comments, the Guardian noted that Iran’s economy could be squeezed hard by “undermining its profits from oil, something the Saudis … were ideally positioned to do.”

The Saudis understood, too, that the best time to crash the markets would be when prices were already soft and consumer demand low. In early December, just a few months after Saudi Arabia unleashed its latest oil flood, Obaid wrote in a Reuters article that his government’s decision to depress prices is “going to have a huge effect on the political situation in the Middle East. Iran will come under unprecedented economic and financial pressure as it tries to sustain an economy already battered by international sanctions.” Around the same time, the Saudis were no doubt pleased to see bread prices shoot up by 30 percent in Tehran. (Bread is a staple of the Iranian diet, and its prices are a bellwether for the economy.)

On Dec. 10, the Saudi oil minister said his country would keep pumping 9.7 million barrels per day into the global markets, regardless of demand. For their part, the Iranians have shown alarm, if not yet panic. Without naming names — he didn’t have to — President Hassan Rouhani decried the “treacherous” actions of a major oil producer whose “politically motivated” behavior was evidence of “a conspiracy against the interests of the region…. Iran and the people of the region will not forget such conspiracies.” The previous day, Vice President Eshag Jahangiri had described the rapid plunge in oil prices as a “political plot … not a result of supply and demand.”

Riyadh’s real hope, if history is any indicator, is that escalated production will force Rouhani’s government to implement an austerity budget that will ultimately stoke underlying social unrest and once again push people into the streets. If this happens, it might not lead to an event as significant as the shah losing his grip on power — but it would reinforce the Saudis’ faith in oil as a potent weapon in the battle to dominate the Middle East. And oil floods, in turn, would likely continue their periodic, dangerous rattling of both the markets and the region.
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Old 12-19-14, 11:53 AM
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

Thanks for posting this. It was an interesting read. Makes a lot of sense.
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Old 12-19-14, 12:07 PM
  #146  
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

Saudi Arabia is expected to be a net importer of oil by 2030.
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Old 12-19-14, 12:11 PM
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

$2.83 at my local Shell, it seems like it drops by 2 cents every couple days the last 2 weeks.
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Old 12-19-14, 12:34 PM
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

$2.17 today. I'm missing out on the send $30 get $5 back promo on my credit card 😄. The tank is only 15 gallons completely empty.
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Old 12-19-14, 06:54 PM
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

Paid a hair less than $3 a gallon for a half tank fill up before I drove down to Los Angeles today, thrilled that gas is less than $3 in the Bay Area.
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Old 12-19-14, 07:20 PM
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Re: I just paid $2.97 / gal for gas! Hoo-ray!?

Originally Posted by Brian Shannon View Post
Until jobs are lost, projects are cancelled, tax revenue declines and Russia crashes. Lower fuel for airlines wont help because people will drive if they have a choice.

People should be very careful for what they wish for and try to look at the big picture.
This country is in desperate economic straits, and we are in need of cheap, affordable transportation.

Cheap transportation = more consumer spending.

Americans are tight-asses when it comes to money, and when they are getting fucked in the skull cavity by Arabs, they will only use their gasoline costs to get to work. And that's pretty much it. Probably add a trip or two to the local grocery store after work (to save fuel and a completely separate trip to the store), and Americans are considerably not spending their money. Low wages, credit being maxed doesn't help, either.

In order to get to the ideal situation...I'm positive gas has to be at the price that you'd get in your car and drive only 4 blocks to a 7-Eleven to get your Combos. Or decide to just go somewhere you'd never think you would because it would be foolish to not take advantage of the cheap fuel. And when you get to that place you normally wouldn't go...you'll probably spend money there. Now multiply this behavior by a 100 million people or more. This is a real stimulus. Not some stupid political stimulus which was absurdly created by our current leaders (and previous ones, possibly).

My concern is 6 months from now. Will it be at $5/gal for regular, thanks to OPEC screwing with the world economy. Countries that do this...need to be invaded and a regime change needs to happen.

I think the Saudis also know how much shale oil can be produced and probably had some infiltration over here and in Canada, determining how long we can continue getting this stuff. Otherwise, they wouldn't have pulled this tactic, because any longer than 6 months, and you'd be looking at them getting cautious.

Last edited by DVD Polizei; 12-19-14 at 07:31 PM.
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