Oil selloff intensifies on Covid fears and risk of US-China intervention

[Yo_Mama_Been_Loggin]

Source: CNN

The oil market has gone from booming to busting, much to the relief of inflation-weary American drivers ahead of the Thanksgiving holiday.

US crude tumbled to a fresh seven-week low on Friday, settling at $76.10 a barrel. The slide is good news for American drivers hurt by the seven-year high in gasoline prices — a crunch that has soured consumers' views on the US economy.

"We will definitely see some pricing relief on gasoline at the pump," Tom Kloza, president of the Oil Price Information Service, told CNN on Friday, adding that the relief will be "feather-like as opposed to plunges."

After a relentless rise, the national average gas price has finally leveled off at $3.41 a gallon, according to AAA. That's roughly flat from a week ago.

Read more: https://www.msn.com/en-us/money/markets/oil-selloff-intensifies-on-covid-fears-and-risk-of-us-china-intervention/ar-AAQUw2Q?ocid=DELLDHP&li=BBnb7Kz

[Evolve Dammit]

1. A neighbor just bought an electric car. Solar panels on the house charge it. Pays nothing for fuel.

[OAITW r.2.0]

3. I invested in solar. I have enough power to hold out for 3 days, should the sun refuse to shine.

And if it did, I would think....if 6 was 9.

https://music.

&list=RDAMVMmDKGgkajDqg

[NickB79]

13. What battery system did you use?

Planning on a solar install myself in a few yrs

[OAITW r.2.0]

16. Enphase....so far, awesome. They monitor the system and can make the right system changes

to address the situation. CMP actually draws down on my reserves when the grid needs extra energy. I pay the $20,00/mo for the privilege..

[reACTIONary]

14. +6... or 9 nt

[Evolve Dammit]

25. Axis: Bold as Love! I have that one!

[Slammer]

5. solar

I put solar on my house in March and have been racking up credit (dollars) every month...except one month in summer where it cost us $5 out of the credit we've built up.

I'm wanting to get a hybrid plug-in van but haven't been able to swing it yet.

Can't go full electric because we go camping at places which don't necessarily have electricity and are up in the mountains where there's no charging stations along the way to get there.

But it'd be really nice to be able to personally take more advantage of the electricity we're producing rather than selling it back to the electric company.

[Evolve Dammit]

24. technology changes so fast, our neighbor leased the vehicle to avoid having something "obsolete."

A van would be sweet for camping!

[Slammer]

38. van

I usually buy a vehicle and drive it until it threatens to fall apart. My last van was 18 years old when I finally sold it and got something else.

We'd bought it the day before 9/11.

[Red Mountain]

6. Mixed feelings, there

What will replace the gas taxes that fund our highway system? Higher rates to renew your license plates?

Rich folks can opt out of paying for the roads they use. Buy electric (probably with a subsidy) and put up solar panels.

Poor people can't.

[reACTIONary]

15. Maybe a mileage tax...

... don't know how it would be administered, but it would be a fair usage tax.

[Smackdown2019]

18. How can that work?

People travel across state lines, not to mention have half mile driveways....mile round trips... x 365 days a year is atleast 365 miles on one's own property....

[reACTIONary]

29. I don't know how it would work...

... I just know that it has been proposed, and if it could work "reasonably well" I think it could be "relatively fair".

People with long drive ways pay the tax on the gas they burn driving on them now. Because of where I live, I often drive across state lines and back without filling up on the other side. So nothing is perfect.

[Smackdown2019]

31. Toll tax

Toll tax would be more appropriate...

[Evolve Dammit]

23. We have a state program that covers a % of solar for residential. They leased the electric car. But

yes, there was the initial outlay for the solar panels, despite the rebate/incentive. I believe Germany has 90% of homes with solar, and that was a decade ago or so. It can be done.

[Alexander Of Assyria]

27. Tax the filthy rich...they got plenty.

[JCMach1]

33. Even with no solar, it's about $20 per month or less to charge my Volt

Plus I usually do it on 110v so no expensive infrastructure needed, just an outlet in my garage.

[Evolve Dammit]

35. 110 is awesome. I did not know that. My neighbor needs 220.

[JCMach1]

36. Most PHEVs have a 110 charger option

[drray23]

2. somehow it always goes back down slower than it goes up..

not sure why thats the case. Whenever the price of a barrel goes up, its reflected at the pump the next day. When it goes down, its a bit slower..

[MissMillie]

7. That was my first thought as well

My second thought was that the prices drop just as the President announces that he want the FTC to look into any mis-deeds regarding oil prices.

[larwdem]

26. agree

Biden put them on notice

[Slammer]

8. gas prices

Gas stations have to guess what their price to buy gas will be next time their tanks are filled. If they guess wrong and undercharge now, it'll bite them in the butt next time they have the tanker truck stop by.

So they're very conservative in cutting their prices and very quick to raise them when it looks like their costs are going up.

For small mom-and-pop convenience stores, guessing right can be the difference between staying in business or not.

When my uncle had a convenience store, it typically cost him over $50,000 when the tanker truck came by. So costs rapidly going up ten or twenty percent really hurt because he wouldn't have been collecting enough money from the customers to cover it.

He eventually lost the store when things went wrong and he didn't have the money to pay the tanker truck. They didn't extend credit to stores, it was "pay when we show up or you're screwed".

[monkeyman1]

4. my friend has solar & get's money from electric grid & zero electric bill !

invested 20 yrs. ago for retirement . plus , has a deep aquifer well , no water bill . been in construction & saw this shit coming ! he just retired .

[BumRushDaShow]

9. Could some of that have been because of this -

As Gas Prices Surge, Biden Tells F.T.C. to Investigate 'Illegal Conduct'



This is the season of "winter blend" which is supposed to be "cheaper" to make and is deployed to handle the colder temps yet, you still had what I call a "spite spike".

We do know that the retailers are always quick to raise the prices but very very slow to drop then.

I'm glad the article did shake off the amnesia about last year with this -

Since crashing to negative-$40 a barrel in April 2020, US crude has climbed as much as $125 a barrel because supply simply hasn't kept up with demand. OPEC and its allies, known as OPEC+, have only gradually increased production. US oil companies haven't been in a rush to add supply either.

That "-$40 (or thereabouts)/bbl was because Russia and Saudi were engaged in a production/price war and glutted the market.

[durablend]

10. The oil market is bullshit

You watch on Monday it'll be "pandemic over, drivers taking to the road in record numbers!" and the price will be right back up

[monkeyman1]

11. ya,ya,ya,---- every damn yr. , it's the same damn excuse !

to much supply or not enough ! wall street run's this country , not the government ! look at at the last 5 yrs. , TFG guy bragging how the stock market every day , you think he was worried about the population, get at a life !

[Rebl2]

12. Saw gas for

2.88 yesterday where I live. Earlier in the week it was 2.91. Last week it was 3.01. It’s coming down slowly.

[TexasBushwhacker]

17. The price really needs to be compared in inflation adjusted dollars

When you factor in the CPI and inflation adjusted dollars, the annual average cost of gas has only varied by about about 20 cents over the last 35 years.

https://www.usinflationcalculator.com/gasoline-prices-adjusted-for-inflation/

[Alexander Of Assyria]

28. Compare to Europe...Americans are spoiled gas babies.

[TexasBushwhacker]

37. And cheap gas leads to cheap food as well

Look what THAT has done for us! It's turned us into a bunch of fat, slovenly pigs! People here have been complain about milk going up to over $3 a gallon. There are places in the world where it's over $3 a litre!

https://www.numbeo.com/cost-of-living/country_price_rankings?itemId=8

Here are the numbers on beef:

https://www.numbeo.com/cost-of-living/country_price_rankings?itemId=121

[IronLionZion]

19. Thanks Biden

or will they credit Trump for this?

The article is an interesting read with the strategic reserves for the US and China and pandemic fears in Europe. As many countries open up travel, Europe is restricting again.

[multigraincracker]

20. When prices are high or going up

never buy anything inside the gas station, only buy gas and less gas more often. Get gasbuddy on your phone and drive further to get the cheapest.

There is little completion in retail gas. They all go up and down at the same time, so reward the best deal and others will follow.

Most retailers make their money on the crap you buy other than fuel. Hot dogs, coffee, smokes and sweets. All of those are cheaper elsewhere. When gas prices are going up, don't go in. Just buy fuel. They will soon catch on.

[monkeyman1]

21. you are so right ! I haven't been inside a gas station in 7 yrs.

[multigraincracker]

22. District and Regional managers pay is based on

in store sales and store cost, i.e. wages. Those are the only things that matter to them. If store sales are falling, so does their pay and they will do anything to increase them and they are always looking for ways to cut the pay of the workers. That is how it works.

[EX500rider]

30. Actually the less you buy inside the more they will have to charge for the gas to make up the diff

Gas is almost a lost leader to get you in the store to buy the high margin stuff.

[multigraincracker]

34. They all charge about the same.

Always go to the cheapest one.

[roamer65]

32. I'd love to hear the Xi and Putin conference call on this one.

This undercuts Russian oil prices…BIG TIME.