Roperteacher

I saw Crude trading for $51.50 today. I teach High School and my classes have been following the price of oil since Oct 1. In oct it was nearly 100.00 a barrel. Down from the 150.00 in July. Today 51.50.

Roperteacher

Make that 49.94

HotRodK

Explain why Diesel is still $2.99 on average since crude has dropped by 2/3rds!

chariotdriver

Go back to late 98/ early 99. Oil was $9 barrell! The mideast was going broke and #2 was under a buck.

Scotty

UP HERE...theres still at least 30 cents per liter difference with diesel being higher then regular gas. .

Scotty

klx650a2

Yup, diesel at some locations here are still 1.26 a liter or 4.76 a US gallon. The flying J is the "best deal" at 1.049 a liter or 3.93.

DBLR

Diesel is high because they ship a lot overseas to the EU thus keeping our supply low and thus the price stays high. In turn the EU exports cheap stale gas back to the USA that helps keep gas prices low.

Scotty

Do you have some facts about this? Sure does not make a lot of sense.
I might learn yet another fact or facts that make a guy really wonder whats up with this planet.

Scotty

JustLuckey

Diesel is higher for a multitude of reasons, must I don't understand and others I can't explain. But here's some hard facts. The federal tax and (most) state tax rates are higher on diesel.
See page 2: http://www.eia.doe.gov/pub/oil_gas/p.../pdf/enote.pdf

For example (measured in cents):
Federal Tax on Gas, Diesel: 18.4, 24.4
PA (my home) Tax on Gas & Diesel: 31.2, 38.1

Without any other factors, diesel is 12.9 cents higher right out of the shoot in PA.

Other factors include (but not limited to):
Seasonal (diesel is competing with heating oil during colder months)
Diesel has a higher demand due to use in Trucking, Rail, Marine industries.
Diesel cost has risen in the last few years as refineries had to increase methods/technolgies for ULSD opposed to LSD.
...the post above is the 1st I've heard of the EU making a difference in price.

Danderson

Coincidentally,that's right about the price for 6 gals. of Delo 15-40 w/coupon @Costco right now!

patdaly

I don't remember where I have the link stored, but since we now only produce ULSD ( thanks EPA ), it is able to be sold to the Europeans, who have required it for some time. They use very little gasoline, and since both Diesel as well as Gasoline are products of refining, they have a excess of supply.

If we were still producing LSD we would all be smiling........

infidel

Exactly.
And some EU countries require a certain percentage biodiesel in their ULSD but they can't produce enough.
So guess what? We export bio to the EU reducing supply here at home which equals higher prices.
Nothing we can do about it unless we tell the oil companies who they can't sell to but that wouldn't be patriotic right?

DBLR

This URL shows how much gas, diesel and other crude oil related products we export every day: http://tonto.eia.doe.gov/dnav/pet/pe...0_mbblpd_m.htm

This one show to whom we export to every day including Venezuela: http://tonto.eia.doe.gov/dnav/pet/pe...X_mbblpd_m.htm

Note all numbers listed are the number of barrels per day we export. FYI each barrel holds 42 US gallons.

AH64ID

Hmmm.. I am still not convinced. Europe runs 5 ppm ULSD, and IIRC 50 cetane.. where we run 15ppm and 40 cetane... (this is one of the reasons Marco had a hard time eliminating the smoke the the Smarty Jr., his truck didn't smoke at all on European fuel. )

infidel

How about this article from last week?
For the first time the price incentive to ship diesel to Europe made it worthwhile to ship diesel from the US west coast. Most diesel exports originate on the Gulf coast.

http://www.platts.com/Oil/News/6020388.xml