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TSPM
11-11-2008, 03:54 PM
HOUSTON, Tue Nov 11, 01:05 PM


Retail gasoline prices dipped for a 17th week since July 4, falling below $2 a gallon in a number of states and as low as $1.77 in Des Moines, Iowa.

While consumers, worried about a weak job market and slumping investments, are grateful for the price relief, there are indications they are hanging on to the money that they are not putting in the gas tank.

Oil prices hit a 20-month low Tuesday as Wall Street offered yet more evidence that consumers have gone into hiding.

Retail gasoline prices fell to a national average of $2.22 a gallon, dragged down by the falling price of crude, which now costs 60 percent less per barrel than it did in mid-July.

Light, sweet crude for December delivery fell more than 5 percent, or $3.25, to $59.16 a barrel on the New York Mercantile Exchange. In earlier electronic trading, crude fell to $58.32, it's lowest point since March 2007.

Oil prices fell two days ahead of a report from the International Energy Agency, which some analysts expect will cut its 2009 oil demand forecast for the third consecutive month.

Volatile price swings are occurring almost every day on the trading floor.

While the Nymex contract is now trading near first-half 2007 prices, the difference then between daily highs and lows was around $1.50 a barrel, while now the average daily range is around $5.50 a barrel with recent daily peaks at $9.50, said analyst Olivier Jakob of Petromatrix in Switzerland.


Investors have grown increasingly leery about the swooning U.S. economy, which faces its worst recession in decades.

Industry analysts had expected China and India would continue buying crude if the U.S. and other western nations went into recession, but the booming economies of Asia have begun to show signs of fatigue.

Some forecasts had called for China's gross domestic product to grow 10 percent next year. More recent forecasts have it closer to 6 percent, the firm Cameron Hanover said in a report Tuesday.

A $586 billion stimulous package in China boosted markets globally early Monday, but those gains fizzled quickly and a sell-off that began by midday in the U.S. continued in Asia and Europe Tuesday.

On Tuesday, the Dow sank more than 200 points after Homebuilder Toll Brothers Inc. and Starbucks Corp. gave investors more evidence the housing market and consumer spending are getting weaker.

Toll Brothers said fourth-quarter revenue fell 41 percent from the year-ago period, while Starbucks reported lower sales across the coffee chain, leading to profits that fell below analysts' expectations.

Gasoline fell again overnight, dipping 2 cents to a national average of $2.22 for a gallon of regular unleaded, according to auto club AAA, the Oil Price Information Service and Wright Express. The average price has fallen nearly 32 percent in the past month and, according to AAA, could be headed to $2 a gallon nationally by year's end.

Crude demand from the U.S., the world's largest consumer of energy, is a key driver of oil prices.

"We saw extremely poor car sales and pretty shocking unemployment numbers from the U.S. last week," said Toby Hassall, an analyst with Commodity Warrants Australia in Sydney. "It wouldn't surprise me if oil edged down toward $50."

U.S. car sales fell to a 25-year low in October while the unemployment rate shot to a 14-year high of 6.5 percent last month.

Oil prices fell despite signs that OPEC members are going ahead with production cuts agreed to at an emergency meeting in Vienna, Austria, last month.

Many analysts are expecting another cut by the Organization of Petroleum Exporting Countries, which will meet on Dec. 17 in Oran, Algeria.

The prime minister of Qatar said Tuesday that "fair" oil prices of between $70 to $90 per barrel would ensure that expensive oil exploration could continue, avoiding price spikes in the future.

Sheikh Hamad Bin Jassim Bin Jabr Al-Thani said that while oil prices below $70 a barrel may seem like a gift to consumers, it could trigger price spikes in the near future when demand picks up.

But for now it is waning energy demand, not the supply controlled by OPEC, that is dominating crude prices.

Events that earlier this year threatened to cut off supply in oil producing nations no longer appear to have the power to send prices surging.

Militants in Nigeria on Monday resumed attacks on the country's oil installations. The military said it killed eight people while guarding a facility in the oil-rich south of the country.

Militants frequently attack oil facilities, seeking to hobble Africa's biggest petroleum industry and force Nigeria's federal government to send more oil funds to the southern states where the crude is pumped.

"The focus of the market has really been on the demand side," Hassall said. "I'd be surprised if supply side issues in Nigeria could change the mood of the market."

In other Nymex trading, heating oil futures fell 7.48 cents to $1.93 a gallon, while gasoline prices dropped 7.3 cents to $1.2945 a gallon. Natural gas for December delivery tumbled 39.8 cents to $6.85 per 1,000 cubic feet.

In London, December Brent crude tumbled 6 percent, or $3.54 to $55.54 a barrel on the ICE Futures exchange.

J.T.
11-11-2008, 04:25 PM
It went up .12 overnight in the Des Moines
Metro area.

Mananged to fill the truck up for under $50 this weekend,
and for some reason, I was excited about that:confused:

DollaBill
11-11-2008, 05:13 PM
Just paid 2.09 in PA. Though it should be near 1.70 compared to a few years ago.The price per brl that is

cigdaze
11-11-2008, 05:42 PM
In some places, I've seen it as low as 1.95 here. Diesel's finally below 3 bucks!

yesrej
11-11-2008, 05:45 PM
Just paid 2.09 in PA. Though it should be near 1.70 compared to a few years ago.The price per brl that is

agreed.

cigdaze
11-11-2008, 06:09 PM
Just paid 2.09 in PA. Though it should be near 1.70 compared to a few years ago.The price per brl that is

Ya, I love how there's this "lag" when prices are receding, but it's a minute-by-minute match when it's climbing! :mad:

Coolerman
11-11-2008, 06:15 PM
i paid 1.85 yesterday

J.T.
11-11-2008, 06:29 PM
And, has anyone noticed a decrease in lubricating oil
prices ?.....our vendors haven't dropped their prices,
since the decline started.

Tantrum
11-11-2008, 06:30 PM
I paid $3.98 for diesel yesterday. The time before that I paid $3.15. Crazy...

Obama tax......all his supports agreed to pay it, he said it right there in the cross talk. :seeya:

THEJOKER
11-11-2008, 06:36 PM
Gas is $ 1.90 a gallon here

TSPM
11-11-2008, 06:50 PM
Ya, I love how there's this "lag" when prices are receding, but it's a minute-by-minute match when it's climbing! :mad:

YUP ..... funny how that works :ack2:

2.37 here on Long Dong Island :(

jmoore32fever
11-11-2008, 07:25 PM
$1.73 just north of cincy, oh

TEAMBAJA
11-11-2008, 07:35 PM
And, has anyone noticed a decrease in lubricating oil
prices ?.....our vendors haven't dropped their prices,
since the decline started.

Ive been wondering that myself.

JIMB
11-11-2008, 08:30 PM
lowest I have seen in Michigan so far $2.09
Ive heard Iowa is down around $1.67

Sea-Dated
11-12-2008, 02:13 PM
$1.69 here.

clayinaustin
11-12-2008, 02:55 PM
I can find it at several places today for $1.91, and it continues to drop.

Maybe we will see it under $1.00 by Spring! :D

TSPM
11-12-2008, 03:20 PM
And, has anyone noticed a decrease in lubricating oil
prices ?.....our vendors haven't dropped their prices,
since the decline started.

Proboaly using the same crap excuses .......clear out the old high priced/purchased stock on the shelves first. That market segment moves very very slow......gasoline has a faster turnover so it will be a while till you see a 6 pack of MOBIL 1 at 19.95 at COSTCO again :(

Trim'd Up
11-13-2008, 10:04 AM
I had this argument with my asphalt suppliers the other day. Their prices are still high as hell, and they claim they are not coming down.

jmeng
11-13-2008, 10:46 AM
Still around $2.20 in Baton Rouge. Go 20 miles in either direction and is .20 cents lower. Aggrevates the crap out of me.

ThrottleUp Props
11-13-2008, 11:48 AM
And, has anyone noticed a decrease in lubricating oil
prices ?.....our vendors haven't dropped their prices,
since the decline started.


Yes staggering increases this past year!:mad:

Julie

J.T.
11-13-2008, 12:12 PM
Yes staggering increases this past year!:mad:

Julie

just got the latest bill this am....a gallon of 15w40 went up $ 1:confused: