War vs. Fuel
Re:War vs. Fuel
Strange, the stations I shop at use Alaskan and Canadian Crude for their sources. I guess we're having problems with them too. Do you notice the silence or lack of noise from our political representatives? Perhaps there's more than meets the eye happening. The prices are moving faster than the shipments to the stations. So, who's doing the gouging and profiteering? Perhaps both the producers and the dispensers.<br><br>~dave
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Re:War vs. Fuel
Diesel fuel and heating oil are essentially the same product with the same 140K BTU per gallon rating. The only differences I'm aware of are that heating oil has a higher sulfur content and is dyed red.
After two mild winters in the eastern U.S., the industry misjudged the demand this winter -- with the record bad weather. Heating oil inventories are about 40% below where they should be -- which impacts directly on diesel fuel costs and levels of production. The situation is similar in parts of Europe. Alpine RAM is right: the industry can't shift production capabilities fast enough to cover for the shortfall -- the lead time is usually several months. Couple this factor with market futures anxiety about the destabilizing possibilities of war in Iraq, and the Venezualan crisis, and you've got a reason why diesel fuel prices has trended upward at a faster rate than gasoline.
Come summer, when the pressure is off of heating oil inventories, diesel should trend downward at a faster rate than gasoline -- the operative word being "should". :
All of this depends on the outcome of the Middle East situation, of course.
GP
After two mild winters in the eastern U.S., the industry misjudged the demand this winter -- with the record bad weather. Heating oil inventories are about 40% below where they should be -- which impacts directly on diesel fuel costs and levels of production. The situation is similar in parts of Europe. Alpine RAM is right: the industry can't shift production capabilities fast enough to cover for the shortfall -- the lead time is usually several months. Couple this factor with market futures anxiety about the destabilizing possibilities of war in Iraq, and the Venezualan crisis, and you've got a reason why diesel fuel prices has trended upward at a faster rate than gasoline.
Come summer, when the pressure is off of heating oil inventories, diesel should trend downward at a faster rate than gasoline -- the operative word being "should". :
All of this depends on the outcome of the Middle East situation, of course. GP
Re:War vs. Fuel
That is very true, however, it doesn't explain how we're (west-coasters) are keeping up with the eastern half of the nation. We're experiencing a very warm winter. I can count on two hands and one foot, the number of days we've had less than 35 degrees and still was only into the 20's. Maybe we're shipping all our heating fuel east. <br>Another thought, perhaps we're not hearing too much political intervention on our part is because, Washington, as I'm sure, most states (anyone know one that doesn't?) derive a gas tax from the sale (one of the highest in the nation, I might add). Consequently, if the price is high, the taxes are as well. Since most states are struggling with out of site budgets, it's not a golden calf to be kicked. Ya gotta love it.<br><br>~Dave
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Re:War vs. Fuel
[quote author=NWDave link=board=10;threadid=11693;start=15#111340 date=1046746118]
That is very true, however, it doesn't explain how we're (west-coasters) are keeping up with the eastern half of the nation. We're experiencing a very warm winter. I can count on two hands and one foot, the number of days we've had less than 35 degrees and still was only into the 20's. Maybe we're shipping all our heating fuel east.
~Dave
[/quote]
That's exactly what you left-coasters are doing, Dave -- sharing the cost and shipping the product toward the rising sun. Welcome to the wacky world of industry planning in the globally-integrated economy. All east-coasters give Dave a warm hand of appreciation for his sacrifice!
:'(
GP
That is very true, however, it doesn't explain how we're (west-coasters) are keeping up with the eastern half of the nation. We're experiencing a very warm winter. I can count on two hands and one foot, the number of days we've had less than 35 degrees and still was only into the 20's. Maybe we're shipping all our heating fuel east.
~Dave
[/quote]
That's exactly what you left-coasters are doing, Dave -- sharing the cost and shipping the product toward the rising sun. Welcome to the wacky world of industry planning in the globally-integrated economy. All east-coasters give Dave a warm hand of appreciation for his sacrifice!
:'(GP
Re:War vs. Fuel
Well actually I think that anybody of you who is in the market to sell a product will prefer getting a higher price to getting a lower price. <br>Oil companies tick the same way. Hey, they want to make profits. So they'll sell to the best bidder, and the buyer will buy where he gets the stuff cheapest possible. Pure free market economy. ( Something I think the US is proud of)- Actually now there are some downsides to this. But the vast majority of US citizens seems to have voted ongoingly for this principle. ( Somewhat since the constitution...)<br>I have travelled countries with a "planned economy" (read communist states) before the fall of the iron curtain. You gotta be glad not to have to live like that. Actually any product was more expensive there, if we base the price on the factor how long I have to work for it. <br>Actually over here we overdo the rise in the costs of transportation right now. In addition to about 1,60US$/gal diesel fuel tax, trucks will be road priced several cents per kilometer. <br>The outcome will be that products will rise in price. Another outcom can be that smaller local businesses will have the opportunity to be more competitive again. I think that this can also be a chance to do things a little more environmentally conscious. (Not like now in Europe. Austrian potatoes are transported to Italy for washing, then to France for peeling and then to Germany for cutting and frying. Then the chips are brought to Austria again for packing. A lot of these packs are sold in Italy, France, Germany .. and some in Austria. This lunacy comes from export subventions. Actually this is the most profitable way to make potato chips over here.)<br><br>Sorry for the loooooooooooooooooooooooooooooooong rant<br><br>AlpineRAM
Re:War vs. Fuel
[quote author=AlpineRAM link=board=10;threadid=11693;start=15#111438 date=1046778667]<br> (Not like now in Europe. Austrian potatoes are transported to Italy for washing, then to France for peeling and then to Germany for cutting and frying. Then the chips are brought to Austria again for packing. A lot of these packs are sold in Italy, France, Germany .. and some in Austria. This lunacy comes from export subventions. Actually this is the most profitable way to make potato chips over here.)<br><br>AlpineRAM <br>[/quote]<br><br>That had me laughing out loud!
I'm trying to imagine just what makes it so unprofitable to wash, peel, cut, and cook potatoes in Austria. Potato-peelers union run the chip-makers out of business?
I'm trying to imagine just what makes it so unprofitable to wash, peel, cut, and cook potatoes in Austria. Potato-peelers union run the chip-makers out of business?
Re:War vs. Fuel
jfpointer: Actually its like that: We pay a whole lot of taxes- so nobody has enough cash to live with- and to cope with that there are subventions. <br>So it's better to export than to keep it.<br><br>I was laughing out loud when I read it first. When I found out it's true I :'(<br>I pay about 47% income tax from money where the state already took 20% sales tax to buy my food with antother 20% sales tax.....
<br><br>AlpineRAM
<br><br>AlpineRAM
Re:War vs. Fuel
I don't know about in Austria, but in the U.S. sales taxes are normally imposed by states and cities. I live very close to the state line between Missouri and Kansas, so on large purchases I often calculate whether any distance involved will negate any sales tax differences and buy accordingly. On food at supermarkets, the sales tax from the state is normally lower than it is on something like a hammer, since everyone needs food to live.
Re:War vs. Fuel
Sales taxes are imposed by the states here too. But I am too far away from any lower tax state to make shopping there worthwhile. <br><br>Anyways it seems to me that the price rage on fuel is still going on. :'(<br><br>AlpineRAM
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