Mid East and Fuel Prices

[Roger Long]

Oh boy, this business in the middle east looks bad.


We're anchored here in New Haven. It looks like there is $3.00 fuel on the CT River and we have 100 gallons extra tank capacity.


Questions: If fuel prices skyrocket as expected today, how soon will they go up in the marinas? Are they allowed to raise prices on what is in their tanks?


There is $3.00 diesel in New Jersey but it's already $4.00 across the harbor here in New Haven.


I'm thinking the CT River would be quite beautiful today

 

[Portage_Bay]

........Questions: If fuel prices skyrocket as expected today, how soon will they go up in the marinas? Are they allowed to raise prices on what is in their tanks?........

If marina fuel stations operate under the same rules and practices as shore side gas stations yes they can and will raise prices on what's in the tanks.

I'm wondering how much of a price spike we'll see? The US no longer gets a large share if it's oil imports from Saudi Arabia. I'm sure oil companies will take advantage of the news and spike the prices for a while, but will the spike hold up?

Source U.S. Energy Information Administration

 

[folivier]

And our oil could become more valuable with the decreased supply from the middle east. That could create somewhat of a shortage here if more of our oil is diverted overseas thus raising our prices here.

 

[bligh]

fuel retailers can change their prices anytime they wish AFIK.

 

[High Wire]

Would not be surprised if they are already up $0.40/gal today. Just like mortgage rates. Up fast, down slow.

 

[Woodland Hills]

In a global commodity market any reduction in supply affects the entire market. Even the value of unexploited reserves goes up, so refined products will increase in value/cost too.

 

[Portage_Bay]

Just heard that Trump is releasing some of the oil reserves. Saudi Arabia says they will have 40% of the lost capacity online by day's end. OPEC and Russia are not at present increasing output.

Add to the mix the relative surplus of crude on the market today and it's anyone's guess what will happen.

I do expect prices to to up, but not by $0.40 / gal. I do expect prices to come back down slowly. It seems to me that many industries have learned how to play the shortage game for short term profit and I don't expect this to be any different.

But.... I'm not an economist. I don't even play on on TV