How much did you pay for gas today?

My guess is you drove by while they were in the process of changing the sign? Had the 9 up for 89 but hadn't replaced the first 9 in 91 yet. Only way that makes any lick of sense.

 

It was down to 2.65-2.75 around here, but has since jumped to 3.09 at some stations.

A Speedway up the road from where I work was 2.65 this morning when my mom went to work, and it was 3.09 in the afternoon when I stopped and put $20 in my tank.

 

See? Elections have consequences.

 

The mere idea that the big oil companies would purposely screw us just because they can; I'm shocked.

On a somewhat related note, my local low-price station has a new competitor two blocks away, a chain called Wawa. Two things that get a big two thumbs up: free air when you need to check or service your tires, and a deli kind of set-up inside that produces food that actually looks and tastes good.

Oh . . . 2.76.9 this morning.

 

Around here it's QT that has the free air, and I love them for it.

 

Supposedly the Saudis are flooding the market with oil at about $78 a barrel to try and hurt the US producers, who supposedly can't make a profit when the price drops below $80. With the rise in domestic production, our imports of Saudi oil have dropped by about 40 percent since 2008 and they are starting to feel the pinch.

Or so I read someplace. It's been stuck at $2.99 in Microville for about two weeks, I think that is a price they think everyone will be happy with even though it should be lower as oil continues to crater.

 

Dropped to $2.59 where I got it, and I'm sure there's lower around here

 

$2.92 here in Northern Colorado.

 

The Saudis supposedly cut their prices on oil bound for the U.S. as a way to target the shale/fracking industry. I have no idea how all this works. I hope in my lifetime we have an energy policy that effectively tells the Middle East to go peddle their $110 oil elsewhere, thank you very much.

 

$2.55

 

It's a simple strategy. Oil has to be above $80 in order for fracking to be profitable. If it stays under $80 for an extended period, fracking rigs get shut down and layoffs hit the oil patch.

A similar thing happened in 1985-86 and it devastated the domestic oil industry, especially in Texas, and that helped spark the S&L crisis. But it was damn nice having 62-cent gas for a while.

With frackers out of the game, the glut dries up and prices spike again, to the sheiks' delight. The Saudis are gambling that they'll make it up handsomely on the back end.

 

$2.81.9