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Heisman Winner [133698]
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oil dropped $5 a barrel today. How soon do you think
Jul 6, 2015, 1:13 PM
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we will see this at the pump? If it went up $5/barrel, gas jumps $.15/gallon.
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Legend [18543]
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Depends on if it stays there. If it's still there in a few
Jul 6, 2015, 1:20 PM
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days, it will begin to go down at the pump. Gasoline for sale today was purchased a day or several days ago depending on the station and their volume. They will not sell it at a loss.
Prices jump up quickly because it takes more money for the station to purchase gas when their cost goes up.
Keep in mind an underground tank holds around 20,000 gallons. A wholesale cost increase of five cents a gallon costs the retailer an additional $1000 to refill the same tank. They raise their prices quickly to help cover this increased cost of inventory.
Competition is also a factor. Several stations clumped together drop prices to be more competitive than the other stations hoping you will choose them over the other when buying gas.
A station out in the middle of know where will be less likely to drop their price.
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Heisman Winner [133698]
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Re: Depends on if it stays there. If it's still there in a few
Jul 6, 2015, 1:23 PM
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that makes cents!! 
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Orange Blooded [2609]
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110%er [5977]
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Re: oil dropped $5 a barrel today. How soon do you think
Jul 6, 2015, 1:23 PM
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The sell price of any commodity is based on replacement cost and market demand. The retailers are going to keep the price at it currently level as long as the market will allow, because when they drop it they will be losing money on every gallon they sell. The margin on a gallon of gas is at about 7 to 10 cents a gallon, the government makes .38 cents a gallon in South Carolina which is low with zero cost and no overhead. In a falling market the retailer tries to keep prices high knowing they will lose money when they lower prices, in a rising market they need to raise price in order to make enough money on their current inventory to replace the same amount. Just rest easy the only ones making large profits on the sale of gas is the government.
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Legend [18543]
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The federal govt makes more off gasoline than anyone.***
Jul 6, 2015, 1:25 PM
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110%er [5977]
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Yep. So the next time you see a congressman going on
Jul 6, 2015, 1:33 PM
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about how the oil companies are making too much money just realize he's playing to the masses who are clueless, and not one reporter will point out that he makes far more than the oil companies. You never see a report from a news organization about how much tax was taken in from the sale of gas.
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Heisman Winner [133698]
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Hall of Famer [22381]
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Maybe we could get the oil and gas companies to build roads
Jul 6, 2015, 1:40 PM
[ in reply to Re: oil dropped $5 a barrel today. How soon do you think ] |
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and bridges so people can use their products and fund our military and our wars in the middle east that aren't reflected in the costs at the pump.
I could on, but you get the general idea.
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Hall of Famer [22381]
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Nikki Haley isn't going to do it. She signed the Norquist
Jul 6, 2015, 1:42 PM
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pledge and has future ambitions outside of SC that cause her to act ideologically instead of pragmatically.
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110%er [5977]
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Re: Maybe we could get the oil and gas companies to build roads
Jul 6, 2015, 1:50 PM
[ in reply to Maybe we could get the oil and gas companies to build roads ] |
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Well that is what the gas tax is suppose to be used for anyway. We wouldn't need the middle east for oil if they'd open up all the areas that have billions of barrels of untapped oil in the United States. Why we wouldn't want to do this is beyond me, because it isn't going to get any better in the middle east and say what you want, but we need oil and lots of it.
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Hall of Famer [22381]
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Instead of increasing dependence on oil, the best thing to
Jul 6, 2015, 1:53 PM
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do would be to develop alternative energy sources that move us away from the volatility of oil prices and the ability of anti-US oil producing governments and entities to fund terrorism once and for all.
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Hall of Famer [22381]
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along with increasing efficiency.***
Jul 6, 2015, 1:55 PM
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Orange Blooded [2110]
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You like windmills?
Jul 6, 2015, 2:24 PM
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nm
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Legend [18543]
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Hall of Famer [22381]
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The Age of Oil is but a pimple on the rear end of history.
Jul 6, 2015, 2:03 PM
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Prices are down only temporarily. It's just a matter of time before prices go back up.
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110%er [5977]
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Re: Instead of increasing dependence on oil, the best thing to
Jul 6, 2015, 2:06 PM
[ in reply to Instead of increasing dependence on oil, the best thing to ] |
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We have plenty of oil in the USA to meet our demands and not rely on middle east countries, but left wing policies prevent us from touching it now. We need oil now and nothing and I repeat nothing can replace fossil fuel at this time. It's a natural resource provide to us by the earth, but it's now becoming bad because of carbon. Carbon......  the building block of all life on this plant is now bad...... lol without carbon we would all be dead.
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Hall of Famer [22381]
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Actually, there are a number of ways we are decreasing
Jul 6, 2015, 2:21 PM
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our reliance on oil and it is happening much faster than you may realize. Electric cars and planes, motors and batteries are moving forward rapidly. NASA estimates that planes powered by electric motors will be a major factor within the next 10 years. http://www.nasa.gov/centers/armstrong/Features/leaptech.html
It's just a matter of time. We could have sped the process up dramatically had we invested trillions into alternative energy and upgrading our power grid and roads and bridges, but we have spent it and will continue to spend it on wars in the middle east.
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110%er [5977]
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Re: Actually, there are a number of ways we are decreasing
Jul 6, 2015, 2:33 PM
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Electric cars are great, but you are just shifting from one fossil fuel to another. The power plants have to produce the energy to charge the cars, and they mainly use wait for it..... natural gas.... You can't get away from fossil fuels at this time its just a fact and we can sit around and not have energy waiting on the new technology. The fact is we have plenty of natural gas, and oil in this country and our left wing congress policies prevent us from harvesting the natural resource. Right now China buys more middle east oil than we do, the usa is the largest producer of oil at this current time.
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Hall of Famer [22381]
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Actually there are a number of ways to generate electricity
Jul 6, 2015, 2:35 PM
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without fossil fuels.
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Orange Blooded [4182]
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Come football season, I' 'll know where you park....
Jul 6, 2015, 2:59 PM
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Your vehicle will be the one with solar panels and a sail on top.
How's Hillary these days?
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Hall of Famer [22381]
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The new Tesla batteries I bought mean I can keep my solar
Jul 6, 2015, 3:09 PM
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panels at home.
And Hillary is doing very well. I heard on Morning Joe last week that recent polling shows her beating every major Republican challenger by between 12 and 27 points. At this rate, it could be a landslide, or worse, if they keep trying to out-extremist the other candidates and the economy continues to improve. It could get even uglier. I am hoping for a Trump or Cruz victory in the primaries.
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Orange Blooded [4182]
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She may feel the same way as Trump or Cruz...
Jul 6, 2015, 3:18 PM
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We won't know until some real journalists get to ask her some questions.
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Hall of Famer [22381]
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We already know she doesn't. Trump's anti-Hispanic rhetoric
Jul 6, 2015, 3:27 PM
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may fire up the base of the party, but it won't win him or his party any general elections. Clinton doesn't share that sentiment.
Trump and Cruz and the rest of the field are on the wrong side of so many issues from the American people and are only going to move more and more to the right to try and separate themselves from the pack, that they will only alienate more and more voters.
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Legend [17243]
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Associate AD [808]
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Funny hearing people outside of Houston talking about oil
Jul 6, 2015, 1:31 PM
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Its funny because when oil prices continued to fall, it was all everyone was talking about in Houston, and obviously it was seen as a very bad thing. 75000 jobs have already been lost in Houston, and most companies are impacted by it. Even if you work at Mcdonalds, a good portion of our customers work in oil and gas.
Not sure if you are based in South Carolina, but are oil prices a big topic of conversation? and is it generally just looked at as a great thing? (lower gas prices, lower transportation costs, etc.)
To answer your question, gas prices are much slower to react than crude oil prices. So, we will see an impact at the pump but it will take the lower crude price holding (or falling) where its at for more time.
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110%er [5977]
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Re: Funny hearing people outside of Houston talking about oil
Jul 6, 2015, 1:43 PM
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falling oil prices are a double edge sword on the one hand its great to fill up the car for less money, but it also means a lower demand. When traders are betting there will be a lower demand for fuel they see a slow down coming in economic growth, which started in the industrial sector the end of the 1st quarter and it was very dramatic. So we could be on the leading edge of a recession, and with countries like Greece, Ireland, Portugal, Spain, and Italy having trouble and the U.S. Virgin Islands can't repay 78 billion dollars it could be a problem.
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Hall of Famer [22381]
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The net effect for the country and the world is like a huge
Jul 6, 2015, 1:50 PM
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tax cut for consumers relative to the loss of jobs in oil producing states. That money is spent on other things like vacations, football games, tvs, phones, food, etc. etc. etc. One note: Falling oil prices do not reduce demand, they INCREASE demand.
It's a good thing as far as stimulating the world economy, but it is bad for alternative energy investment.
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110%er [5977]
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Re: The net effect for the country and the world is like a huge
Jul 6, 2015, 1:55 PM
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You are completely wrong about falling oil prices. The reason it drops is weak demand and the traders see a softening in worldwide use of oil which is bad. If you don't believe me just go back and look at the world economy when oil prices are dropping. Europe economy has be flat for several years and China is in a slow down.
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Hall of Famer [22381]
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So, people buy more of something when prices go up?
Jul 6, 2015, 1:58 PM
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and buy less of something when prices go down? That is not what I learned at Clemson.
Falling oil prices are fantastic for the world economy.
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110%er [5977]
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Re: So, people buy more of something when prices go up?
Jul 6, 2015, 2:16 PM
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If they were buying more of it, then the price wouldn't go down. This isn't the same as a Iphone or a computer people aren't buying fuel because they want it, they only buy it when they need it. Oil prices drop when the sellers of oil see less demand, China isn't buying as much, Europe isn't buying as much there is a reason for the drop in use.
Its just like lumber prices when housing starts drop lumber prices fall, because of weak demand. The price of lumber dropping 10 or 15 dollars a 1000 board feet isn't going to jump start the housing industry its more complex than that, but lumber prices are a indicator of the housing industry just like oil is a indicator of the overall health of the world economy.
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Hall of Famer [22381]
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We are saying about the same thing, except that you
Jul 6, 2015, 2:30 PM
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are assuming that the reduced price of oil doesn't cause an in increased demand, all else equal. A slowing world economy will reduce demand, but when the price falls, it creates a standard economic supply and demand reaction. Supply and demand and prices are not static. They are constantly changing. Prices have been going up at the pump recently. It is a never ending process.
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Legend [18543]
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CU Guru [1116]
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Re: Funny hearing people outside of Houston talking about oil
Jul 6, 2015, 2:06 PM
[ in reply to Funny hearing people outside of Houston talking about oil ] |
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Iran is expected to supply 3m barrels a day due to Obama's bad Nuke deal.
The price of oil will be higher by the end of year or sooner.
We are one event in the Mideast from seeing a big price jump in oil much sooner. Israel getting nervous.
Buy Energy MLPS that pay 5% or more div. And this time next year you won't be sorry.
I'm not an analyst but I did stay at a Holiday Inn Express last night.
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Orange Blooded [4756]
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Re: oil dropped $5 a barrel today. How soon do you think
Jul 6, 2015, 2:21 PM
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Rock Defender [53]
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Re: oil dropped $5 a barrel today. How soon do you think
Jul 6, 2015, 3:59 PM
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It may be down today, but most stocks / markets are down due to Greece. When Greece gets things worked out, then those prices are going to rise again.
If pump prices finally drop, I'd recommend filling all your vehicles before they go right back up.
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CU Guru [1482]
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Re: oil dropped $5 a barrel today. How soon do you think
Jul 6, 2015, 5:44 PM
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It's summer, so it could drop TO $5 a barrel and we wouldn't see much at the pump.
Refineries and distributors will keep it at the max as much as possible.
It only gets appreciably lower when we stop driving so much, start conserving around the house, and buy more efficient vehicles.
Supply and demand.
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Legend [19885]
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$2.30 per gallon @ Myrtle Beach***
Jul 6, 2015, 6:06 PM
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110%er [6980]
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i guess by $5 you mean $53.
Jul 6, 2015, 6:17 PM
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Just saying
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