The gasoline market

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GORDON
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The gasoline market

Post by GORDON »

About a decade or two ago, I remember a thing on the TV news.

People had purchased gasoline "futures," that may not be the correct term. They had bought this gas (5k gallons, or whatever) when it was $1.50 per gallon, and were then taking delivery, one fill-up at a time, when gas was over $3 per gallon.

Anyone know what is the correct term for this, and if it's still a thing? For all I know it could have been a single company offering that service.

Because know what? Now's the time to buy.
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TheCatt
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The gasoline market

Post by TheCatt »

GORDON wrote: People had purchased gasoline "futures," that may not be the correct term. They had bought this gas (5k gallons, or whatever) when it was $1.50 per gallon, and were then taking delivery, one fill-up at a time, when gas was over $3 per gallon.
Those are indeed futures. I do not know about that being a thing at the personal / consumer level. It's definitely something that businesses do to make cash flows more predictable.

Gasoline futures. In theory, anyone that wants to bother setting up a futures account can trade these against their own potential liability. They are financial instruments, though, not physical delivery. You'll notice the curve drifts upwards over time, as people expect oil prices to rebound to some extent. But if you click on a contract, you'll see the severe dropoff, from $2 wholsale down to < $1 for most near term contracts.
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GORDON
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The gasoline market

Post by GORDON »

It may have just been a local company doing the consumer-level service. But I def saw it on TV News. Peeps on camera super-smug about getting cheap gas fill-ups.
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GORDON
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The gasoline market

Post by GORDON »

This may have been what I saw.

https://www.firstfuelbank.com/
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TheCatt
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The gasoline market

Post by TheCatt »

GORDON wrote: This may have been what I saw.

https://www.firstfuelbank.com/
Looks like they are geared towards fleet services.
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GORDON
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The gasoline market

Post by GORDON »

I remember about a decade ago, gas was creeping up on $4/gallon, in this area. I remember trying to fill up my 36 gallon gas tank in my truck, and the pump stopping at $100, because that was the max it would allow. Had to pump again to top off (and give them another credit card service fee, ha ha ha).

ANyway, yesterday I topped off the truck and filled up two gas cans (7 gallons combined). $1.44/gallon. $30.

If prices stay like this, the American frakking industry is gonna go under. The USA will stop being the main exporter of oil, and I don't know what happens then. My wild-ass guess is that in 5 years, gas prices will skyrocket, as there's not much american production, any more. The wildcard in that scenario is renewables. Things are weird right now, people might decide they like their cities not choked with car pollution, and laws may get passed.
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Leisher
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The gasoline market

Post by Leisher »

My company is now converting our process to another primary chemical ingredient so we no longer make hydrochloric acid. This is because the oil market is bottoming out and it's killing demand.

Also, bought gas today for $.99/gallon
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