Use access key #2 to skip to page content.

lemoneater (72.87)

Will gasoline go below $2.00 a gallon?

Recs

3

July 14, 2009 – Comments (9) | RELATED TICKERS: LOW , GAS

Right now gas is $2.11 in my immediate area as of this morning. Based on fundamentals does anyone forsee gasoline going lower? I know that there is a relation between the cost of a barrel of oil and what gasoline costs but I don't fully understand the connection. Where is the cost of gasoline trending up or down?

9 Comments – Post Your Own

#1) On July 14, 2009 at 12:01 PM, jatt22 (< 20) wrote:

  it   will  probably     stay  in  2.20 to  2.90  .   depends  where  u  live   cuz   regardless  barrel  go  50   or  75$  gas  will  stay  like  dat  cuz  if  barrel  go  higher  then  it is  even to  station  owners  cuz  then  they  dont  make  any money  they  just  run  it   an  when  barrel  goes  down  they  start  making  money cuz  dats  da  only  time  when  they   turn  their  bad  months  into  good  months  . 

   ( i  am  in  station  buisness )

Report this comment
#2) On July 14, 2009 at 12:09 PM, ReadEmAnWeep (94.57) wrote:

Wow so when gas raises station owners actually take cuts or no profit? I thought at ~$5/gal they were making tons on me...

Report this comment
#3) On July 14, 2009 at 12:22 PM, nottheSEC (72.43) wrote:

 Lemoneater it will always be $2-$2.60 a gallon at least until the end of summer.

what jatt22 says!

1)Gasoline retail is a low margin business. That why Exxonmobil divested themselves of their corp owned stations.Summer is peak so they have to charge maximum. 

2)Also is refiner capacity is down prices jump. It always is because nobody has built one since 1976 and I believe we lost one in the Katrina disaster.

3)Lastly oil if prices jump up $10-20 prices have to go up

 

Report this comment
#4) On July 14, 2009 at 12:43 PM, Alwaysgolong (< 20) wrote:

I have my 1 ton Super Duty Dino Burning Power Stroke tied on to my 40 foot 5th wheel camper -- loaded heavy with food beverage and firewood. We're headed to the mountains tonight after work. Planning on two weeks of Huntin and Fishin. Huntin the ice chest, fishin for beer...

If the price of fuel does drop,, My luck dictates that it will wait till AFTER I burn 500 gallons of it! I'll be back July 27 

Plan on a drop in fuel price any time after that day.... 

Report this comment
#5) On July 14, 2009 at 1:06 PM, lemoneater (72.87) wrote:

jatt22, thanks for the info. It's good to get the inside scoop from somebody who knows what's going on. Sounds like gas station owners get a bad deal when the cost of oil goes up. Hope your station does well. 

Notthesec, 1976 seems a long time ago. I wonder why we haven't built any refineries recently?

Alwaysgolong, Enjoy your time in the mountains. We will see if gas goes even lower the end of this month :)

Report this comment
#6) On July 14, 2009 at 1:27 PM, nottheSEC (72.43) wrote:

lemoneater NIMBY-> Not IN My Back Yard. It smells like well burnt gas.

Report this comment
#7) On July 14, 2009 at 1:28 PM, outoffocus (23.72) wrote:

Actually gasoline may dip below $2.00 by winter. The key is to look at gasoline futures which are currently in the $1.50's for November and December.  Oil will probably drop back down to $50 by the winter. If gasoline futures go below $1.30 the we will see sub $2 gas again.

Report this comment
#8) On July 14, 2009 at 1:29 PM, nottheSEC (72.43) wrote:

 Alwaysgolong ENJOY!

Report this comment
#9) On July 14, 2009 at 1:55 PM, lemoneater (72.87) wrote:

outoffocus, thanks for the tip about gasoline futures. Gas may go even lower by winter, Wow!

Report this comment

Featured Broker Partners