1.99 for gas here in South Texas
Senior Member
Joined: Jan 2005
Posts: 599
Likes: 0
From: Marshall, Tx
The price for crude is falling, but that means nothing really. The major refineries in the states have recently announced that they are halting expansion of their facilities. Citing that there wasnt enough incentive (profits).
http://online.wsj.com/article/SB1225...googlenews_wsj
OPEC decided last week to cut output by 1.5 million barrels per day. The demand is dropping which is great but the oil companies arnt willing to give their product away for free. Another production cut is expected when OPEC meets again in December. Venezuela, a non-OPEC country, is considering cutting production by 1 million barrels per day to aid in stabilizing oil prices. So, IMO, I would expect to see artifically inflated prices (aka slow production) for the foreseeable future.
Couple that with the Federal Reserve decision to cut key interest rates, thus devaluing the dollor in international markets, yet again. Oil is bought and sold in US currency only. A weaker dollar means higher oil prices. Thanks Fed
http://www.tradetnt.com/dollar-falls...-low/1236.html
http://africa.reuters.com/wire/news/usnN29500128.html
FWIW I was in Tyler TX last night and filled up on Exxon 87octane @ 2.07/gallon . It felt nice to spend less than $60 for a tank. Had'nt enjoyed that in a long time.
http://online.wsj.com/article/SB1225...googlenews_wsj
Refiners Look to Reduce Production as Falling Gas Prices Cut Into Profits
Couple that with the Federal Reserve decision to cut key interest rates, thus devaluing the dollor in international markets, yet again. Oil is bought and sold in US currency only. A weaker dollar means higher oil prices. Thanks Fed
http://www.tradetnt.com/dollar-falls...-low/1236.html
The American dollar ended the day with the biggest one day fall in 23 years as the Federal Reserve announced an interest rate cut to help soothe global investors regarding the world economy and the need to repatriate the dollar from risky market investments. The key interest rate was dropped by a half percentage point down to 1%, the lowest it’s been since 2004. The drop was done in an effort to prevent the financial market crisis from widening even more and dropping the United States into what is believed will be a prolonged recession.
http://africa.reuters.com/wire/news/usnN29500128.html
Oil jumped more than 7 percent percent Wednesday as the dollar fell after the Federal Reserve cut U.S. interest rates.
FWIW I was in Tyler TX last night and filled up on Exxon 87octane @ 2.07/gallon . It felt nice to spend less than $60 for a tank. Had'nt enjoyed that in a long time.
