Thread: 4 dollar gas

Originally Posted by nickcuse

nobody cares about a post that everyone agrees with, doesn't prove anything, and doesn't relate at all to what was being discussed.

ready for that apology yet?

Nickcuse is correct. The crack spread historically widens during the summer months as gasoline demand increases. This demand will drive up the price of high-quality crudes, which are the benchmarks such as WTI and Brent.

In winter, the demand for these crudes is usually relatively weaker. Many poorer quality crudes are just burned as fuel oil. When the summer comes, there is even less demand for these, whilst the benchmarks tend to go up, so the spreads can widen considerably.

In any event, the price of gasoline usually heads north in the spring and recedes in the autumn.

I haven't seen what the inventories are doing at the moment, but I would have thought the shut-in of Exxon's Nigerian production and Forties pipeline in the UK wouldn't be helping none...

Originally Posted by Latherty

Nickcuse is correct. The crack spread historically widens during the summer months as gasoline demand increases. This demand will drive up the price of high-quality crudes, which are the benchmarks such as WTI and Brent.

In winter, the demand for these crudes is usually relatively weaker. Many poorer quality crudes are just burned as fuel oil. When the summer comes, there is even less demand for these, whilst the benchmarks tend to go up, so the spreads can widen considerably.

In any event, the price of gasoline usually heads north in the spring and recedes in the autumn.

I haven't seen what the inventories are doing at the moment, but I would have thought the shut-in of Exxon's Nigerian production and Forties pipeline in the UK wouldn't be helping none...

so then it costs more to produce fuel for autos and jets, and less for home heating oils?

Originally Posted by Luigi

This isn't real hard to explain, unless you have an axe to grind or are just plain stupid/misled.

Price gouging happens.

You've wandered into the wrong thread. This discussion is about fuel prices. Since the oil companies make a measely 10-13% profit on their product, they are not "gouging".

Please wander away until you find the correct thread.

Originally Posted by nickcuse

nobody cares about a post that everyone agrees with, doesn't prove anything, and doesn't relate at all to what was being discussed.

ready for that apology yet?

Oh, goody. I can't wait to see nicky apologize to Libre.

Clearly that's what nick is promising. If he was waiting for an apology from Libre, he'd have phrased it "ready with that apology".

Originally Posted by Freedom for All

Oh, goody. I can't wait to see nicky apologize to Libre.

Clearly that's what nick is promising. If he was waiting for an apology from Libre, he'd have phrased it "ready with that apology".

not sure thats correct, but if so, i made a mistake.

see, honest, decent, non-cowardly people can do that, admit when they're wrong.

libre, obviously, can't.

Originally Posted by Freedom for All

Oh, goody. I can't wait to see nicky apologize to Libre.

Clearly that's what nick is promising. If he was waiting for an apology from Libre, he'd have phrased it "ready with that apology".

:laughing:

Originally Posted by nickcuse

so then it costs more to produce fuel for autos and jets, and less for home heating oils?

Yep. Refineries actually strip off the kerosene (jet fuel) and gasoline and have the fuel oil left over, almost as a by-product. Lighter crudes get more of the good stuff out of a barrel. Heavier crudes have to be worked more and you get less gasoline/ kerosene and more fuel oil per barrel volume.

Some heavier crudes, if they don't have too much sulphur in them (ie "light"), will just get burnt without refining at all. This used to happen to crudes like Duri in the winter time. But in the summer, when the crack spreads widen, Duri would get refined because it was worth the effort. I suppose Duri is refined year-round these days...

Originally Posted by Latherty

Yep. Refineries actually strip off the kerosene (jet fuel) and gasoline and have the fuel oil left over, almost as a by-product. Lighter crudes get more of the good stuff out of a barrel. Heavier crudes have to be worked more and you get less gasoline/ kerosene and more fuel oil per barrel volume.

Some heavier crudes, if they don't have too much sulphur in them (ie "light"), will just get burnt without refining at all. This used to happen to crudes like Duri in the winter time. But in the summer, when the crack spreads widen, Duri would get refined because it was worth the effort. I suppose Duri is refined year-round these days...

so then i wonder how the volumes compare: the increase production of heating oil vs. the decreased production of gasoline in the winter. and then how the total sales of each stack up.

Quote:
Originally Posted by Luigi
This isn't real hard to explain, unless you have an axe to grind or are just plain stupid/misled.

Price gouging happens.

Originally Posted by Freedom for All

You've wandered into the wrong thread. This discussion is about fuel prices. Since the oil companies make a measely 10-13% profit on their product, they are not "gouging".

Please wander away until you find the correct thread.

Thanks, I forgot that one FFA. Some people have an axe to grind AND are stupid AND misled. Shouldn't have left you out.