Gas Price-Zone Price

Alpha8472
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Re: Gas Price-Zone Price

Post by Alpha8472 »

My father told me about the long gas lines during the Arab Oil Embargo. The lines today are nothing compared to what it was like in the 1970s.

Crude oil prices quadrupled. It was the equivalent of them rising to over $200 a barrel today.

When the pandemic hit in March 2020, demand for gas plummeted as Americans drove less due to staying at home. The typical driver cut their usage in half or more. OPEC and oil producing nations such as Russia cut production by 10 million barrels or about 10 percent of the global supply.

As the world economy recovered, OPEC was slow to increase production. OPEC did not increase production until July 2021. They are seriously behind in production.

The U.S. imports less than 10 percent of its oil and gas from Russia. The U.S. is not dependent on Russia for oil. However, U.S. sanctions are making it difficult for oil to flow to the global market and prices are rising due to this.

If Putin stays in power and signs a peace treaty, it could take months for countries to do business with him again. Countries will have determine whether he will keep a peace treaty or not. If there is a regime change in Russia, gas prices could go down much quicker.

We should take steps to reduce oil consumption. If we all drive 55 we could drastically reduce oil consumption and be less dependent on oil. Russia would have less power over us.
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Re: Gas Price-Zone Price

Post by Bradford011 »

Alpha8472 wrote: March 13th, 2022, 12:41 amMy father told me about the long gas lines during the Arab Oil Embargo. The lines today are nothing compared to what it was like in the 1970s.
I lived through that. Lines were long, in fact they set up an even/odd system where if the last number on your tag was even (0-2-4-6-8) you got gas on even numbered days, if odd (1-3-5-7-9) you got it on odd days. That did help a bit.
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Re: Gas Price-Zone Price

Post by pseudo3d »

Alpha8472 wrote: March 13th, 2022, 12:41 am My father told me about the long gas lines during the Arab Oil Embargo. The lines today are nothing compared to what it was like in the 1970s.

Crude oil prices quadrupled. It was the equivalent of them rising to over $200 a barrel today.

When the pandemic hit in March 2020, demand for gas plummeted as Americans drove less due to staying at home. The typical driver cut their usage in half or more. OPEC and oil producing nations such as Russia cut production by 10 million barrels or about 10 percent of the global supply.

As the world economy recovered, OPEC was slow to increase production. OPEC did not increase production until July 2021. They are seriously behind in production.

The U.S. imports less than 10 percent of its oil and gas from Russia. The U.S. is not dependent on Russia for oil. However, U.S. sanctions are making it difficult for oil to flow to the global market and prices are rising due to this.

If Putin stays in power and signs a peace treaty, it could take months for countries to do business with him again. Countries will have determine whether he will keep a peace treaty or not. If there is a regime change in Russia, gas prices could go down much quicker.

We should take steps to reduce oil consumption. If we all drive 55 we could drastically reduce oil consumption and be less dependent on oil. Russia would have less power over us.
The reason why gas price is here is because Europe is buying from U.S. instead of Russia, limiting supply. A 55 mph speed limit won't work--it would heavily depend on enforcement, and the last time around only cut petroleum use by 1%. The increased commute times and political agitation it would cause would be a net negative overall.
storewanderer
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Re: Gas Price-Zone Price

Post by storewanderer »

Alpha8472 wrote: March 13th, 2022, 12:41 am My father told me about the long gas lines during the Arab Oil Embargo. The lines today are nothing compared to what it was like in the 1970s.

Crude oil prices quadrupled. It was the equivalent of them rising to over $200 a barrel today.

When the pandemic hit in March 2020, demand for gas plummeted as Americans drove less due to staying at home. The typical driver cut their usage in half or more. OPEC and oil producing nations such as Russia cut production by 10 million barrels or about 10 percent of the global supply.

As the world economy recovered, OPEC was slow to increase production. OPEC did not increase production until July 2021. They are seriously behind in production.

The U.S. imports less than 10 percent of its oil and gas from Russia. The U.S. is not dependent on Russia for oil. However, U.S. sanctions are making it difficult for oil to flow to the global market and prices are rising due to this.

If Putin stays in power and signs a peace treaty, it could take months for countries to do business with him again. Countries will have determine whether he will keep a peace treaty or not. If there is a regime change in Russia, gas prices could go down much quicker.

We should take steps to reduce oil consumption. If we all drive 55 we could drastically reduce oil consumption and be less dependent on oil. Russia would have less power over us.
I would say people can make the decision to drive 55 if they want to, and save gas. Meanwhile the people who want to drive 65 or 75 can be aware that doing so increases their gas cost.

Gas prices were going up long before the Russia incident. They started to go up around the middle of November 2020 for some reason. Not sure why that was.... oh wait. Anyway, the Russia situation is something you could logically say is responsible for the spike in recent weeks. I am also suspicious given many countries continue to buy oil today from Russia, that the problem here on prices is OPEC taking advantage and manipulating the market, using Russia as an excuse.

Also curious if Russia can sell oil to some other country then that other country sell that same oil (or maybe some other source's oil) oil to the US. There is just as much oil flowing around today as there was in October 2020. Consumption is up as the economy has reopened, but not enough to justify these increases. It has also been an unusually warm winter, causing the demand for winter heating oil to fall.

But drifting off topic above, I posted this thread more to make observations about the pricing at the retail level/street level and to watch how gas pricing was going during this period. So we may want to move back to that topic.
Alpha8472
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Re: Gas Price-Zone Price

Post by Alpha8472 »

Costco has been going up practically everyday. It seems most stations in the San Francisco Bay Area are afraid to go past $6. It is mostly $5.99 right now.

Costco is all over the place. Some are at $5.28 and others are at $5.43.

Many of my friends and coworkers are saying they are driving less and staying at home more. This is affecting sales at stores and restaurants. There is much less impulse buying. People are spending less.
storewanderer
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Re: Gas Price-Zone Price

Post by storewanderer »

Alpha8472 wrote: March 13th, 2022, 12:21 pm Costco has been going up practically everyday. It seems most stations in the San Francisco Bay Area are afraid to go past $6. It is mostly $5.99 right now.

Costco is all over the place. Some are at $5.28 and others are at $5.43.

Many of my friends and coworkers are saying they are driving less and staying at home more. This is affecting sales at stores and restaurants. There is much less impulse buying. People are spending less.
In Reno it is 4.99 the stations do not want to pass. Costco and Sam's Club have the lowest price in town at 4.84 but in other parts of town many stations are still at 4.99 (including all of the Maverik sites; ironic as Maverik was the fastest to go up and was posting the highest prices in town a couple weeks ago; they led everyone else up in price). Most Shell/Chevron stations have crossed over 5 and of course all of the 7-Eleven sites are over 5.

I am cutting driving in hopes this goes down very soon.
storewanderer
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Re: Gas Price-Zone Price

Post by storewanderer »

Price seems to be creeping up again.... wonder what the current excuse is. I thought the summer blend isn't required this summer to keep prices down.
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Re: Gas Price-Zone Price

Post by DFWRetaileWatcher »

storewanderer wrote: May 7th, 2022, 11:34 pm Price seems to be creeping up again.... wonder what the current excuse is. I thought the summer blend isn't required this summer to keep prices down.
Not sure I would use the word "excuse."

The only reason there was a slight reprieve in gas prices is because there is speculation that China won't be using as much oil as originally thought because they've locked down again due to COVID. But now that's being weighed against the prospect of Europe moving forward with its oil embargo on Russia. Fundamentally, with the Russia-Ukraine War still ongoing, OPEC not willing to boost production and resurrection of the Iran Nuclear Deal seemimgly dead in the water, the supply side of the situation hasn't changed.

Whether or not the summer blend is a requirement is really a tiny part of the broader equation.
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Re: Gas Price-Zone Price

Post by storewanderer »

Maverik rocketed its price to above $6 at most (but not all) of the Reno sites today. They kept a few at 5.99. Many other stations were holding at 5.99 but I am sure how they will go ahead and progress over $6 too.


Price is up close to .25 in the past five days.
Alpha8472
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Re: Gas Price-Zone Price

Post by Alpha8472 »

In the San Francisco Bay Area, Costco is just about the only one under $6 at $5.99. There might be a few independent stations under $6. There are many stations at $6.85. I have not seen any $7 stations yet.
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