It use to be that you could look at oil futures prices for gas and fuel oil(close to diesel, if not the same), add $.50, and that was the price at the pump, if not today, maybe tomorrow, or a week. Now, Diesel sells for $.60-$.80 over fuel oil futures, and gasoline is like around $.40 now. Houston is officilly under $2.00/gallon, first since March 2005.
It seems fuel oil trade about $.40-$.50 over gas on futures, but we seldom see that at the pump.
Ideas? Thoughts?

 

I was wondering the same thing, We have Gas out here in Calif for 2.30 and Diesel is 2.69. For a while there Diesel was cheaper than regular gas.. What I want to know is, how long will these better prices be around.. any future outlooks?

 

I know the reason diesel has been staying so high is that much of the US production of ULSD is exported to Europe where there is a shortage of refinery capacity. Creates a a supply shortage here, more money for the ULSD exported to Europe.
Perhaps the fuel oil future prices are for low sulfur diesel rather than ULSD?

 

I suspect that may be true. Europe, from what I read, does not yet have our emission standards for diesel, so they may burn LSD vs. ULSD. I think they meet our standards around 2010 or 12.
Gas fuures yesterday closed at 1.37, heat oil 2.01.
I do know that 50% of all vehiles there burn diesel. It is a dollar or 2 less per gallon than gas, based on government tax being less(due to being more efficient). Their refineries are geared toward diesel. They have left over gas which is exported over here.
The world depends on diesel for it's economy to move trucks, trains, and jets(Jet fuel is kerosens? a cose diesel cousin?). Did I mention heating oil, which heats most of the Northeast? That is a lot of demand.
Mexico is also ramping up ULSD, which they now sell in most locations, so I hear. About 40% of their fuel is refined by Shell here in Deerpark(Near Houston), based on a $1B 1990 contract.
Regular here is $1.90-2.00 and diesel 2.70-2.90, so that is $.80 0r $.90 diffrrence.
Regardless of the reason, it seems we will be paying a premium to run our desiels.

 

Yep,

I think it may be this way for a while, and Supr hit some of the high points why. Need to lower demand or produce more product in order for us to get the Diesel prices down. In Illinois today, gas $1.99 and diesel $3.19.

 

That is pure ........... They are price gouging like crazy out there ....... Call your Senator or something!

 

Yep call your Senator, maybe that'll get them to lower the price.

 

Most (All?) of congress is on BIG OIL campaign contribtion list(They can afford to with $4 gas, $5/diesel). They have been a huge help in getting us in the current mess we are in. The majority, both parties, signed on for Wall Street greed, that began on Clinton's watch.
But this thread is about the price of oil, partculaly the relationship of gas prices v diesel prices, vs the spread in futures. Let's try to focus on that.
It would seem only increasing supply though more drilling and more refineries or expansions will change this equation.

 

I say we can thank the EPA for diesel being so high do to the BS of us being forced to use ULSD. I've been told that the EU has been on some sort of ULSD for a good 12 years so when we went to ULSD our fuel could then be sold to the them.

 

Oil is down to 55.00 a barrel. Should we expect even more price drops?

 

Or you can have a decrease in demand. A warm winter which lowers the demand for heating oil, combined with the slow down of the construction sector could supply the catalyst to lower demand. Once again, market forces of supply vs demand. Right now we have a low supply of diesel and a high demand for it. If that continues, the high price will continue.

 

What really ticks me off is all the politicians on both sides talking about energy independence then allowing the export of ULSD fuel to Europe thus lowering supply here and in turn jacking prices. How can there be a lack of refinery capacity if there's enough left over to export?
Don't see any we're out of diesel signs at the stations
Sure I believe in free trade without government interference but when it
comes to energy things need to change or next thing you know greedy energy companies will be laying cables across the Atlantic to export our
taxpayer funded wind energy to Europe to make more money.

I've emailed both my senators and one representative with my rant and all I've got back is a generic energy spiel that doesn't even come close to addressing my questions.

 

Oil is up to $59.18