Higher Fuel Prices Coming

...and they could be SIGNIFICANT !!

Wall Street Journal
Oil Prices at Nine-Month High as Iraq Instability Continues - WSJ

NEW YORK—Global oil prices climbed to a new nine-month high Thursday in a seventh straight session of gains after President Barack Obama emphasized he wouldn't send U.S. forces to Iraq.
Brent crude on the ICE futures exchange settled up 80 cents, or 0.7%, at $115.06 a barrel, a fresh nine-month high.

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Iran appears set on protecting the Shiite oil fields of southern Iraq as multiple reports this week detail the Iranian Revolutionary Guard and other militia forces moving into the southern region to protect the area.
For now, oil exports and southern production are not impacted by the ISIL movement, but the fall of the Baiji refinery today does increase concerns over the growing turmoil in the country.
And as concerns mount, there will be a big impact on crude oil prices today and in the future...

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Crude Oil Prices Soaring on New Attacks in Iraq; Here's Where They're Headed

So far, seems like the market is not too concerned. Prices have gone up a couple percent. But prices can do that for no reason at all.

Watching carefully. If crude prices soar, I can make a bulk buy before retail prices show it. Hopefully, that is. Usually I hear about crude price spike and it takes retail a couple days to raise the price.

Seems like a speculative bump. Although the lefty national Canadian newspaper had an article about "peak oil" this morning. So someone is trying to jack the price.

A fairly major pipeline in Iraq may be down for about 9 months. The Iraqi pipeline infrastructure can re-route some of this oil, but production will be significantly lower. A possible loss of several hundred thousand barrels/day.

World oil production has the capacity to make up this shortfall with a small blip in the price, but if others problems occur in Iraq or elsewhere, there will be plenty of speculation happening.

The recent price rise in gas is just another example of gas companies trying to rip off the American drivers.

Someone farts in the middle east and they use that as an excuse to "temporarily" raise prices. But after the fart blows away prices never seem to come down.

Our small FD trawler won't feel the fuel prices at 1 gph.

But probably won't drive the 73 Buick very often.

manyboats said:

Our small FD trawler won't feel the fuel prices at 1 gph.

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Amen! Times like this I appreciate the obnoxiously low fuel consumption of my 29HP diesel.

My '76 Torino 4 door sedan is my daily driver to and from work. The 351W averages around 12MPG. Thankfully, I live fairly close to the college.

AusCan said:

A fairly major pipeline in Iraq may be down for about 9 months. The Iraqi pipeline infrastructure can re-route some of this oil, but production will be significantly lower. A possible loss of several hundred thousand barrels/day.

World oil production has the capacity to make up this shortfall with a small blip in the price, but if others problems occur in Iraq or elsewhere, there will be plenty of speculation happening.

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Militants Lay Siege to Iraq's Largest oil Refinery

Militants Lay Siege To Iraq's Largest Oil Refinery

If these militants overrun the refineries and the production platforms, who is going to stay around and run and maintain these facilities. They could fall into disrepair like happened under Saddam, then who can 'make up the production difference'??

And particularly if we have a whole religious war going on over there that could even affect Saudi Arabia

Sunni fighters expand offensive in western Iraq | FOX 11 Online | WLUK-TV

...even religious recruits from other lands
Father BINS family pictures of British student in ISIS jihadist recruitment video | Mail Online

The furious father of a star medical student who went to fight jihad before appearing in a chilling ISIS recruitment video has said he has binned family pictures of his son.

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Nasser Muthana, 20, has been revealed as a key figure in a chilling recruitment video aimed at luring jihadists to Iraq.

The star medical student secretly travelled to Syria from his family home in Cardiff with his 17-year-old brother Aseel - despite being offered the opportunity to study medicine by four universities.​

Today, his furious father Ahmed Muthana, 57, said if his sons ever return to the UK, he would like to see them jailed.

He added that his sons have 'betrayed his family and betrayed Britain' - before insisting he had already binned family pictures of his boys because 'you don't keep the devil in your house' ​

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That's why we have a "Trawler".

Man oh man I am I glad I just sold by 40 Mainship sedan bridge. The thing was a gas pig a pair of 2007 8.1L HO's and she'd gobble huge amounts of fuel, yes you could get there fast but at what cost?
Bill

GFC said:

The recent price rise in gas is just another example of gas companies trying to rip off the American drivers.

Someone farts in the middle east and they use that as an excuse to "temporarily" raise prices. But after the fart blows away prices never seem to come down.

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If the price of gasoline has recently gone up in the US, it should have nothing to do with the attacks on the the Beiji refinery in Iraq. This produces fuel for Iraqi domestic use only.
However - if there are any more problems with upstream oil facilities (drilling/workover/production/pipelines) then that does have a direct effect on you gasoline prices. That effect should be delayed a few months, but speculators tend to speed that up to almost an immediate price rise.

I expect that we will never see the price of oil below $100/barrel again. My fuel bill for the boat could be up over $5/hr. I can live with that.

Bought 173 gals today at Inlet Marina St Augustine. $4.00 @ gal.
Cost of doing business in an obmanation.

I think the price has gone up in the US because it historically goes higher due to summer demand and different mandated blends.
Bill

Billylll said:

I think the price has gone up in the US because it historically goes higher due to summer demand and different mandated blends.
Bill

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Gasoline prices are usually up in summer due to vacation demand. Pressure on diesel fuel supplies is reduced because the heating season is over. I saw some highway diesel yesterday that was advertised at $3.64/gal. That is with a load of taxes included. I haven't seen it that low in quite awhile.

I'm not ordinarily a betting man, but I might be willing to wager that we will see $130 a barrel crude soon

Doha really put any faith in the "free market" controlling fuel prices. Hell, a tanker truck breaks down in Tucson and big oil claims the distribution for the country is crippled so they raise the price of gas at the pump in FL. $.10 cents a gallon. I pay no attention to any of it in planning my life. The oil companies will charge what they want and we will buy it. The whole system is as crooked as a NW Arkansas country road.

Mule said:

Doha really put any faith in the "free market" controlling fuel prices. Hell, a tanker truck breaks down in Tucson and big oil claims the distribution for the country is crippled so they raise the price of gas at the pump in FL. $.10 cents a gallon. I pay no attention to any of it in planning my life. The oil companies will charge what they want and we will buy it. The whole system is as crooked as a NW Arkansas country road.

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I keep hearing it's all about the speculators in the oil markets betting one way or another on prices.

I'll begin by stating I'm no fan of any of the SOBs. But the jumps in the price of oil has nothing to do with the "Oil Companies", it's all with Wall Street speculators. They'll look for any reason under the sun to raise the price. An who controls Wall Street? The crooks in DC.

dhiggins said:

. An who controls Wall Street? The crooks in DC.

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Now how can you say that ?. ...I believe it is greed that controls was street

I think you answered your question. An again, who are the only ones who can control WS?

Oil sells for a price the market will bear. Stop buying it, and the price will fall. Other than taxes and artificial supply tactics the market determines the price.

Sure wish I could believe that, however methinks there is mucho market manipulation at work.

Demand isn't the driver with fuel as it is with most any other product. We're going to buy it. Period. We might buy less as the prices go up, but we'll not ever "not buy" it at any price. As well, prices drop and we don't all go out and buy much more than a tank full.

Rambler you've got it. Supply and demand principles never work with necessities; food, meds, water, utilities, etc.. If we had a govt. that was there to work for "us" oil prices would not be controlled by speculators getting rich at our expense.

The thing is, that with those other commodities, there are other options. There are lots and lots of various food choices, so the potato grower or the wheat speculator can't control the market. Not so much so with fuel (gas). It's all the same. And some bozo in a suit on the 55th floor says what we'll pay next month.

Amen brother, amen.

Agreed that there is limited variation in the price of fuel. However, with gas prices increasing at the pump diesel road fuel is coming down. The summer vacation season drives up gas prices along with manipulation. When the heating season is over in the Northeast which corresponds to summer vacation, diesel prices tend to come down. There is limited storage capacity, so the product must be moved.

The different grades of fuel required by each state and limited refinery capacity also come into play. I hate to say it, but if we are to be energy independent we must have fuel prices that justify the higher cost of extracting the fuel.

Hey, I don't like the prices. My boat at cruise uses about 25 gal/hr. That is just the way it is.

Yep

So much for the "free" market. Enron along with a number of other scandals that have proven over the years the market is no longer operating on a level playing field. As I hear the hue and cry from owned politicians like Rubio crying about regulations I cannot help but reflect...regulations...bring em on, with enforcement and real penalties for real people. Not laws and regulations for the little guy but for the real thieves, huge corporations, financial institutions and the people responsible. Seems more energy is spent making sure I do not flush poop over the side than making sure BP does not have a blowout. Self regulation should be renamed "license to steal". The honor system does not work if there is no honor. The perfect example of an oxymoron is "corporate morality". Also remember this, it is class envy if Tiny Tim says, "may I have some more sir", and class warfare if the serfs rise up and fight back. Now excuse me while I scoot my soap box back into the closet....I gotta go get in line to buy 250 gallons of $4 diesel.

It is still a free market. You can speculate on oil contracts just like anyone else. Just keep in mind what keeps the market liquid. It isn't the oil producers or the contract purchasers.