[gb]

[Hulksmash]

Meh It's temporary. Why do i say this? Diesel prices are about the same. When diesel prices drop i'll believe gas will stay down for a while.

[DIYSteve]

FWIW, lots of U.S. diesel going to Europe, where increased market share of U.S. refineries has offset overall softened demand. Some experts say that U.S. is becoming the "diesel refiner for the world." As a longtime oil resource nerd, I'll be watching closely to see how this plays out. Current softened prices are due to relaxed demand. Relatively high petro fuel prices justified more expensive extraction plays, e.g., fracking, tar sands, but those plays are low margin (or in the case of most tar sands plays, economically impracticable) enterprises at current prices. Add to that: There's growing evidence that the Bakken plays might be relatively short-lived. Only a retrospective look years from now will tell us when we hit the global oil production peak, and it's very possible that the Bakken plays will result in a PO adjustment of only a few years. New reserves get unexpectedly discovered from time to time, e.g., Bakken, North Sea, but those discoveries are happening less often and overall extraction prices are increasing sharply from a long-term perspective. Also, the advent of fuel-efficient cars is a significant factor in curbing demand, so maybe you 12MPG 4x4 drivers should give thanks to Prius and Insight owners.

[AR]

I thought we were talking about gear ratios at first glance...I was going with 4.88's and an Eaton L.S. behind just about any power house.

[coldrain108]

election is over - back to 3.59/ gallon - it's really not that complicated.

[Redwic]

Gas is currently $2.69/gallon at my house. The rumor I have been hearing is that the lower-than-usual gas prices will be used as an excuse/reasoning for the State Legislature to pass a gas tax. Of course, if that happens then the prices will skyrocket in a hurry once oil barrel prices jump back up. $4.00+/gallon... here we come!

[mike]

Saudi Arabia is dropping their crude prices to the US. (but not to Asia) This is going to put the squeeze on any Bakken players who have overextended themselves in the rush to cash in. And there are quite a few. Bakken crude doesn't have nearly the head room that Saudi crude does. FWIW Anacortes refineries are bringing in 60k brl. via tank car a day and are getting ready to expand that capacity considerably.

[Malachai Constant]

The Saudais are doing the same thing John Rockefeller,did at the turn of the century. He came into town drastically undercut,the suppliers that were there by selling under cost, once they went bust he raised the price to higher than it was before. Capitalism 101.

[AR]

I'm not sure why Hulksmash cares as he's been using hundred dollar bills for toilet paper. Coldrain108 nailed it with the election. It's already back over three dollars in Stanwood.

[MtnGoat]

[Malachai Constant]

Source the Mises Institute

[MtnGoat]

As always, you're more than welcome to show the information is actually false. The problems with 'monopoly' in markets where the technology remains known are well understood. On the other hand, why change now.

[Malachai Constant]

Nobody (including me) has the slightest interest in debating your libertarian theology.

[MtnGoat]

[AR]

"... like actual falsification of a claim that shows your argument to be false. This isn't political anything, it's merely economic facts." Best checkmate of 2014.