The fastest-growing bet in the oil market these days is that the price of crude will double to $200 a barrel by the end of the year. Options to buy oil for $200 on the New York Mercantile Exchange rose 10-fold in the past two months to 5,533 contracts, a record increase for any similar period. - Bloomberg, January 7th.So, has everyone noticed that oil is now below $45 a barrel and gas is now well below the $2 mark? Hmmm. Where are all the stories on the 6 o'clock news? Where are all the people ranting about the government not doing anything and how greedy "big oil" is fleecing everyone? What about all the conspiracy theories? What about the windfall profits tax?
Thursday, December 04, 2008
Where's the News?
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4 comments:
This is probably a stupid question, but do you know how many gallons of gas are in a barrel of oil? The "barrel of oil" price means nothing to me.
I probably should be complaining, but I can fill the FIT up for less than $18 so I'm trying to just be happy that it is no longer costing $40.
Totally not a stupid question. I had to look this one up. One barrel of crude oil contains 42 gallons and about 46% of each barrel of crude oil is refined into automobile gasoline. Or, to look at it another way, about 70% of the cost of gasoline comes from raw crude.
http://www.wilmingtongasprices.com/crude_products.aspx
http://www.usatoday.com/money/industries/energy/2008-05-24-gas-breakdown_N.htm
Thanks! Umm . . . so Mr. Math . . . I don't even know how to formulate a question from those percentages, but I'm going to try. So you have to convert the crude oil to gallons and then refine that to get gas . . . So if we know the price of crude oil we should be able to figure out how much per gallon car gas is, right? So how do you convert that . . . I just want to know if the FIT takes 9 gallons of gas (which it does) how much it should cost on the basis of the crude oil price . . .
there is a reason I went to law school and didn't do anything mathematical.
tax the heck out of it and use the $$$ to build up a more sustainable transportation infrastructure!!!!!!!!!!!!!!!!!!!!!
I am the only person in the US who is mad about the low gas prices.
Never fear, I predict that next summer we will reach the $5 mark as demand once again exceeds supply...
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