Gas prices

[SpringVelocity]

GREAT FOR ECONOMY.....Nice at the pump but not so nice for guys working... Feel bad for guys working there expect more next few months...

http://www.cbc.ca/news/canada/edmon...kers-to-leave-oilsands-project-site-1.2991034

 

[scott craven]

With oil at $46 a barrel, you would expect a better pump price than $1.20 ltr

 

[SpringVelocity]

Its being done on purpose should be less than .90 right now... Canada is in trouble with the US supply and weaker demand...

 

[tulameentrapper]

Most of the west coast refining capacity is down. That's why the prices are so high. Exxon had an explosion in California, bringing down their 100,000 bpd refinery for at least the next few months. Tesoro is on strike, so their 240,000 bpd refinery is offline. 2 other refineries in Washington are in major turnarounds right now. So is the refinery I'm at. So while crude is priced very low, and there is lots of it, there is not enough finished product to supply the market. So prices go up. Short supply=higher prices.

 

[Clint r]

We'll recover eventually. For the short term anyway. Long terms a different story. With the global push for clean renewable energy sources, we will be behind the eight ball unless we start to plan for it.

 

[halimark]

Not believing any of it=conspiricy by oil companies and Government for proffit and tax revenue. What will the reason for the Friday/weekend increases we can expect during the upcomming summer? I do not even look now, boat, truck must be filled so I can fish/hunt/work. Their buisiness model is working, I must have gasoline.

HM

 

[J-GLOBAL]

The Middle East is trying to cripple north America's oil output and it will take longer than that to accomplish. If gas goes up fracking down south and the tar sands ramp up again too. I think it hinges on us and the Americans agreeing on smaller production numbers which is what the Middle East wanted all along.

Its all about Russia, not North America. The N.A. oil producers are collateral damage. Its having a far bigger impact on Russia, who has been a bad boy lately.

At this point the country suffering the most is Russia.

And that's the target.

Russia just turned off the natural gas pipe flow to Europe too. Some homes are cold right now.

Can't, need the revenue.

I would not be surprised if Putin created a major International incident to scare the price per barrel back up.

Russia is being punished for Ukraine. Or at least, that's what America's allies are trying to do. We'll see how long they can go, or whether Russia will withdraw from Ukraine.

Opec is flooding the market with crude to drive down the price per barrel making north american shale drilling & tar sand development less profitable, rigs are getting shutdown all over the place , There have been lots of lay-offs and drilling programs will get scaled back until prices improve and the price per barrel stabilizes, seen it before and we will see it again , it is boom or bust sometimes in the oilfield.
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North America is collateral damage, where some will be temporarily offline. Russia is the target.

Its being done on purpose should be less than .90 right now... Canada is in trouble with the US supply and weaker demand...

A big part of the problem with Oils vs. Gas prices is Oil is in USD, price at the pump in Canada is in CAD.
Canadian Dollar has dropped 20% since July last year.

By comparison, the Ruble dropped by 55%.
Incomes are dropping, inflation is 20+% (particularly food prices), recession. Government just announced all salaries to be cut by 10%.
And that is the point of America's ally Saudi Arabia increasing oil production. There are small local impacts in N.A., but nothing like Russia.
--> reducing investment in N.A. production is a bonus, but its temporary.

It will be interesting to see how long the Saudi's will support this low price by keeping output high.

It will be interesting to see what Russia does. Right now its seeing whom will outlast whom I think.

 

[Filletandrelease]

Hmm. Where's Jesse Ventura when you need him?

 

[robertg]

I'm here in Texas visiting for 2 weeks,the price down here for a U.S. gallon of reg is 2.20 a gallon, that works out to .55 cents a litre. Yea talk about ripped off and being handed bs while our government sticks its finger

 

[fishnwhenIcan]

I realise the lower dollar makes a difference in the price of gas but the price fixing that goes on in this province is riduculous especially in the lower mainland. Not long ago we were over 1.20 while everywhere else in Canada was below a buck. Explain that one to me. And it's been like that for years. People get pissed and complain about price fixing. The government says they looked into it and it isn't happening. Ya right! I believe that.... now explain to me why diesel costs more than gas?

 

[SpringVelocity]

Just another bunch of BS the price is fixed right now like I said it should be under .90 for what is going on... You can bet the government is involved.

 

[Rockfish]

Most of the west coast refining capacity is down. That's why the prices are so high. Exxon had an explosion in California, bringing down their 100,000 bpd refinery for at least the next few months. Tesoro is on strike, so their 240,000 bpd refinery is offline. 2 other refineries in Washington are in major turnarounds right now. So is the refinery I'm at. So while crude is priced very low, and there is lots of it, there is not enough finished product to supply the market... . So prices go up. Short supply=higher prices.

Sounds more like a convenient excuse for price gouging and profiteering to me. If there is truly “... not enough finished product to supply the market ...” driving up prices:

which gas station chains have closed down because their tanks are empty?

how many thousands of homes are cold because there is no heating oil being delivered?

how many airlines have cancelled flight operations due to a lack of fuel?

how many freighters are stranded in Vancouver harbor because there is no fuel for them to fill up with?

The answer would seem to be none that I am aware of and in fact there would seem to be sufficient refined finished product to meet demand and certainly no indication of shortage or bidding wars, with the winners cranking up retail prices because they paid more for it and the losers shutting down operations. If there was it would be all over the news.

It seems to me that it is far more likely that an industry with billions can hire very smart people to sit around and spin up rationalizations and have their Communications and PR Officers sell the message and influence governments in order to keep windfall profits from very low crude oil prices as high as possible.

 

[Birdsnest]

Maybe it just me but it seems that overtime the price gets low a refinery blows up or goes down which the result is higher fuel prices. When my machinery goes down I don't get an increase I just eat it. And why does diesel cost more than gas these days and for the last 4 years????

 

[spring fever]

Sounds more like a convenient excuse for price gouging and profiteering to me. If there is truly “... not enough finished product to supply the market ...” driving up prices:

which gas station chains have closed down because their tanks are empty?

how many thousands of homes are cold because there is no heating oil being delivered?

how many airlines have cancelled flight operations due to a lack of fuel?

how many freighters are stranded in Vancouver harbor because there is no fuel for them to fill up with?

The answer would seem to be none that I am aware of and in fact there would seem to be sufficient refined finished product to meet demand and certainly no indication of shortage or bidding wars, with the winners cranking up retail prices because they paid more for it and the losers shutting down operations. If there was it would be all over the news.

It seems to me that it is far more likely that an industry with billions can hire very smart people to sit around and spin up rationalizations and have their Communications and PR Officers sell the message and influence governments in order to keep windfall profits from very low crude oil prices as high as possible.

I agree with you and Birdnest. We will only get true lower prices on gas or diesel when there is real competition for our energy dollar. I am no anti oil greeny but when you think on it -what is exactly our recourse-none-if they truly couldn't sell all they produced -then prices would come down as they jockeyed for market share. Right now they are restricting supply to maintain prices- if we were able to say-"ta hell with it" I'll use the-electric , hydrogen , sun or fuel cell or whatever technology instead of-then they would have to compete. One of the main beneficiaries of course is the Gov't-not specifically this gov't but any gov't-expect a Royal Commission on the prices-coming to a podium near you-say around election time. No collusion or price fixing found-another refinery down for maintenance. Same old circus!!

 

[Clint r]

Provincial and regional taxes make up a large part of the price per litre of gasoline. Especially in the lower mainland where there seems to be no control to how much both local and provincial government spend. I'd lay money on a bet that if the transit plebiscite comes back no, gas will go up even more.

 

[fishnwhenIcan]

You notice a few years ago when oil went to $125 or so a barrell then gas went up to 1.25 a litre. Then it went back down but the price only went down a little not to where it was. Then when it went back to $125 a barrell recently we had to pay $1.50 and it wasn't currency our dollar was strong. Why are we paying .25 more for the same $125 a barrell oil? They always seem to point to inventories for a reason it doesn't go back down at the pump but the price goes up within hours of a mention of a possible supply interuption. But no, there's no price fixing going on and all politicians our honest...

 

[Jwolfe]

Carbon tax

 

[bigbruce]

Crude oil and refined product are very different animals. They are, however, both commodities and traded as such. As commodities, they are subject to the laws of supply and demand. There is a glut of crude right now (i.e. supply is high) so the price is low. There is a shortage of refined product now because of various refinery issues and the fact that demand is increasing as we move into the travel season - thus the price is high.
While there may, at times, be situations where the commodity prices of crude and refined product move together, it obviously doesn't happen all the time as we see now.

 

[jeffywestcoast]

Price per barrel is low but the weakened Canadian dollar is also having its effect as crude oil price per barrel is set in American dollars. Not saying we are not being gouged by the feds , but is does have some effect having a low dollar.


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[rjs]

tha translink tax is 17cent .... thats all i know and they want more !!!