May Reduce Demand for Fuel

Aug. 10 (Bloomberg) -- Crude oil fell and gasoline plunged the most since September on speculation fuel demand will slow after U.K. authorities arrested 21 men planning to blow up airplanes heading to the U.S. from Britain.

The risk of attacks may cut travel and consumer spending, curbing economic growth. In the three months after the Sept. 11 assault, oil fell 35 percent. Prices also dropped today after BP Plc, the world's third-largest oil company by market value, said it may keep part of the Prudhoe Bay oil field open. Oil surged on Aug. 7 when the company said it would shut all operations.

``The terror threats may be a drag on economic activity,'' said John Kilduff, vice president of risk management at Fimat USA in New York. ``This should put a chill on travel and result in less of a call for oil. Consumer confidence may fall, stalling global growth.''

Crude oil for September delivery fell $2.35, or 3.1 percent, to $74 a barrel on the New York Mercantile Exchange, the lowest close since July 28. It was the biggest decline since May 15. Prices are up 14 percent from a year ago.

Concern that the conflict between Israel and Hezbollah might spread in the Middle East, source of almost a third of world supply, pushed oil to a record $78.40 a barrel on July 14. Israel's government said it will give the United Nations more time to negotiate an end to fighting before sending troops deeper into Lebanon.

Gasoline for September delivery tumbled 18.33 cents, or 8.4 percent, to $1.9889 a gallon in New York, the biggest drop since Sept. 2. It was the lowest close since April 7. Prices are up 4.9 percent from a year earlier.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a0Vi4cOdU3b4&refer=home


http://www.wtrg.com/

8/11/2006 4:24:43 PM

cool

8/11/2006 4:31:37 PM

Here we are a few days later and I still see that the majority of stations I pass on the way to work haven't lowered the prices at all. Prices have pretty much been at $2.999. A half dozen or so did (I pass a lot of stations on the way to work). The best deal station lowered the price about $0.07/g.

So nice to see that a double digit reduction (*made up figure alert*) in the cost to get a gallon of gas to the consumer translates into a 2% decrease in the price of gas

8/14/2006 7:27:03 AM

i think its ridiculous how fuel is so much cheaper if you go about 20 miles north of downtown raleigh on US 1

8/14/2006 8:30:34 AM

there's a gas station right next to 95 that is currently 3.16

the one across from that is 3.13



if you go 1/2 mile to the 7-eleven, it's 2.89


what the hell is up with that. how can those other two justify their prices?

8/14/2006 8:36:33 AM

^they cant...the simple solution is...dont buy from them...

8/14/2006 8:39:38 AM

yep, pretty much. It's Shell and Mobil anyways. Everyone goes to 7-11 or WaWa for gas around here.

8/14/2006 8:42:01 AM

yeah...its easy for me to get lazy and pull into the first gas station i see...even if the price is 3.06/gal...but they arent going to change it if i keep paying it soo...i guess its worth it drive a little ways

8/14/2006 8:46:49 AM

Quote :

"there's a gas station right next to 95 that is currently 3.16 the one across from that is 3.13 if you go 1/2 mile to the 7-eleven, it's 2.89 what the hell is up with that. how can those other two justify their prices?"

it is called location. in orlando this is a very common.

near my sisters house, about 2 miles from the major roads (ex: 2.75)
near i-4 exit (ex: 2.90)
near i-4, disney exit (ex 3.05)

i've seen almost a 40 difference before.

8/14/2006 8:59:28 AM

http://www.raleighgasprices.com/

Kangaroo on HW1 is selling for $2.78, Deans Grocery is selling for $3.09, a $0.30 difference.

But I must point out that it is an uneven process by which gas prices come down locally because no gas station wants to be the first to start the price war. What you usually need is one station owner that just filled up right before the price drop and gets anssy, eager to get rid of it before the price drop hits the local market so he discounts a few cents to canibalize customers from others and get rid of his expensive fuel.

Other stations that don't have a pool of expensive gasoline in the ground are usually willing to allow this unchallenged for awhile because they will soon need to replace all they sell and would rather continue to pocket the high margins being paid by the inattentive buyer that is used to $3 gas and so is not price shopping.

But after a week or so even the least attentive shopper will wake up and realize BP and Exxon are ripping them off.

[Edited on August 14, 2006 at 10:19 AM. Reason : .,.]

8/14/2006 10:08:26 AM

gas in this part of the world has dropped pretty significantly. in Elizabethtown it's 2.89 and at a place or two in Wilmington it's 2.81. it's way too high, but at least it's not going up right now.

8/14/2006 1:13:53 PM

Gas in Morehead City is running between 2.88 and 2.91 a gallon.

In Pembroke, it's still at 2.99 at the Citgo and 2.98 at a local station not a big difference from two weeks ago when I left.

8/14/2006 1:34:58 PM

it still costs too much

8/16/2006 12:27:37 AM

^ On what grounds? I think it is pretty well priced considering what you are getting for your money.

$1.50 was just too little, considering.

[Edited on August 16, 2006 at 12:53 AM. Reason : ,.,]

8/16/2006 12:52:38 AM

shut the fuck up

8/16/2006 1:36:52 AM

LoneSnark won't be happy until we are all paying for gas with our plasma.

8/16/2006 7:25:23 AM

Is plasma going to be the future currency?

I guess that would cut down on the ability of the FED to inflate the money supply, unless it went Dracula on us and starting draining people to death on the street and then dropping the blood from helicopters.

It would also guarantee a minimum income to every human since people naturally produce plasma. It would give everyone a minimum income of 1 pint every day regardless of socio-economic situation.

8/16/2006 8:50:02 AM

still falling...

8/18/2006 8:16:07 AM

Perhaps there is a coming recession? Gasoline dealers appear to think so...

8/18/2006 10:21:09 AM

Well it's about time.

[Edited on August 18, 2006 at 10:39 AM. Reason : (the lower gas prices, not the recession)]

8/18/2006 10:38:56 AM

this thread isn't as popular as the other ones

hmmmmmmmmm

8/18/2006 10:41:30 AM

i happily paid 2.83 yesterday

8/18/2006 10:52:34 AM

that's exactly what they want people to say, instead of YOU FUCKS BETTER GET IT BACK UNDER 2 DOLLARS

8/18/2006 10:57:23 AM

2.98 yesterday

2.72 today


quite a few cars were lined up.

8/18/2006 11:22:27 AM

i think we can all agree that lower gas prices would be nice

8/18/2006 11:33:50 AM

I was in Wilson earlier and I saw it for $2.81/gal!

Mike

8/18/2006 11:45:31 AM

It was $2.69 on Monday at several gas stations along I40 out towards Burlington. Most were in the $2.70's.

8/18/2006 1:06:01 PM

Honest question for LoneSnark...

Do the companies that chart this stuff make any graphs that include zero as a baseline?

8/18/2006 1:16:06 PM

Quote :

"i think its ridiculous how fuel is so much cheaper if you go about 20 miles north of downtown raleigh on US 1"

Come to Asheboro, last Saturday it was 23¢ a gallon cheaper in Greensboro. But that is what happens when 1 man owns 80% of the gas stations

8/18/2006 1:56:03 PM

^^ Gamecat, nope, not a single one that I know of. If they want to know how much empty space there is below the graph they can read the chart.

[Edited on August 18, 2006 at 2:16 PM. Reason : .,.]

8/18/2006 2:09:25 PM

It's still about 2.89 around here, though it was 2.85 at the Phillips 66 on Hwy. 50 last week, its probably less now.

Hopefully it will continue to drop into October, when I have to make my next big trip

8/18/2006 2:11:47 PM

Go here to find the cheap stuff:
http://www.raleighgasprices.com/

The wal-mart in wake-forest is at $2.73

The cheapest in Raleigh is a Sheetz at $2.77

8/18/2006 2:15:18 PM

...that's only technically true. I was given a blistering lesson in "ethics" from a BUS professor for not including the zero on a chart in a business proposal. I agreed with her point that it'd more clearly and accurately depict the long term data, and was just curious as to why those companies would follow a different line of thinking...

8/18/2006 3:06:08 PM

Quote :

"^ On what grounds? I think it is pretty well priced considering what you are getting for your money. $1.50 was just too little, considering. "

kill yourself

i'm glad i have the TWW plug-in.

8/23/2006 4:46:22 PM

Quote :

""

I think the graph is more informative when you back it out some more...


[Edited on August 24, 2006 at 8:03 AM. Reason : more skewed graph ]

8/24/2006 7:42:43 AM