Fill 'em up boys! $1.82/gal Diesel!

[Angela]

It's $1.99/gallon delivered here in Miami. Fill baby, fill!! I've got a truck coming Saturday morning. I'm going to fill everything I can find. Heck, I think I'll even fill the bathtub!

[Jaxfishgyd]

Oh Stormchaser..... About your negative outlook.

STORYPHOTOVIDEOCrude Oil Tumbles Below $36 as Demand Drop Swells Inventories
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By Mark Shenk

Dec. 18 (Bloomberg) -- Crude oil fell below $36 a barrel for the first time since June 2004 as declining demand created a glut of crude and the weakening economy undermined OPEC’s efforts to reduce supply.

Oil for delivery in future months has dropped less than the contract for January as supply has swollen in the storage hub for crude traded in New York. The U.S. Energy Department said consumption will be lower in 2009 because of the recession. OPEC agreed to reduce output by 2.46 million barrels a day yesterday.

“There’s a lot of supply and not a lot of storage left,” said Adam Sieminski, Deutsche Bank’s chief energy economist, in Washington. “There’s a hope somewhere that the economy will be better in 12 months and the OPEC cuts will start to have their intended impact.”

Crude oil for January delivery dropped $3.84, or 9.6 percent, to $36.22 a barrel at 2:47 p.m. on the New York Mercantile Exchange, the lowest settlement since June 29, 2004. Futures touched $35.98 during today’s session. Prices have tumbled 75 percent from a record $147.27 on July 11. T

[stormchaser]

Well, I certainly HOPE I'm wrong...but my thought is that with the reduced output...that glut will soon be used up and prices will rise...or may rise in ANTICIPATION ofr that glut being sued up...sure hope Im wrong...would lvoe ti to stay at or below $2/gal for diesel...sure will make it mroe likely I will use the baot a lot rather than jsut using her as a floating home.

[captddis]

Filled up today for 1.70/ gal diesel at Clearwater municipal .

[Passages]

$5.15 a gallon last summer was just a bad dream, Wasn't it? We didn't really have to dig that deep, did we?

A glimmer of hope is that we are seeing these low prices during the heating season. Come spring when that demand abates, we should should see oil continue to trade in a reasonable range.

This of course assumes the world remains somewhat stable from a political and weather perspective.



Just an aside, I had about 200 gallons of #2 delivered to my house last week. Ticket said $3,19/g and I called to say 'what gives, I can buy over the road diesel much less than that. She tried to tell me #2 is different and besides, I'm under a contract cap of $4.89/g so I should be happy they are only charging me $3.19. Fine, cancel my my contract, I'll get my oil elsewhere.

Amazing thing then happened, I was immediately offered $2.49 locked to September 2009, price retroactive to 1 December 2008.

Pays to fuss sometimes.