Home heating oil and diesel fuel prices in the next few months (Rumor???)

[kennyp2339]

I heard a rumor from a friend that home heating oil and diesel fuel was going to spike during mid Fed early March because the US is cutting production on the fracking wells (light sweet crude) and souley going on imports from opec countries, is there any merit to that? Right now I'm paying 2.55 a gal for diesel and just paid 2.24 a gal to fill my oil tank (thankfully I'm on the every other year cycle) It would really stink if diesel shot up to 3.55 a gal over something stupid.

 

[Z33]

Not sure on the rumor part but there are some things that have been pushing up oil prices.

The Biden has said he is pulling the plug on the keystone Xl pipeline day 1 of his presidency. It may not make a direct impact but it defintely sets the stage for what I think will be a war on oil.

(broken link removed)

In addition OPEC and Russia have agreed to sustain the production cut from their last meeting,

Oil soars near $50 after OPEC and Russia agree to roll over production cuts | CNN Business

A group of major oil producers have agreed to keep production broadly steady in February and March as the pandemic forces some economies back into lockdown and governments struggle to distribute vaccines.

www.cnn.com

With the vaccine out, economies starting to reopen, and the war on oil, prices are sure to be trending up

 

[Bad LP]

I suspect we will be paying a lot more for everything shortly.
We’ll soon see if it’s rumor or fact.

 

[peakbagger]

There is a worldwide pandemic, everyone is driving less and just as importantly flying less. At some point this will change and the demand for fuel will go up. Jet fuel production has been shifted to heating oil and diesel fuel, that will change. Unless there is a new carbon tax, demand will go up which will drive up prices short term. Add a carbon tax and the price goes up. The price of oil is so low that US fracking does not make economic sense. Let the price of oil drift up, then fracking comes back and the price drops.

 

[paulnlee]

And to think we were once energy independent. Not for long enough tho. A few months ago reg was under two bucks, now no less than $2.59/gal

 

[bholler]

This is starting to get pretty far into the political weeds. I will let it up for now but keep it under control.

 

[kennyp2339]

@blades $10 a gal? I don’t think it will ever get that high, and to keep this as politically free as possible, and just me hypothetically thinking here, is there an agenda to follow China’s lead with the environment, I’ve been segwaying watching the energy crisis that government created when it blocked coal imports from Australia and how the poor people over there are suffering in record cold temps, government even took peoples wood away from them.

 

[kennyp2339]

@bholler totally understand what your saying especially in today’s climate of things so to speak, but we are energy people here, whether it’s wood, coal, natural gas or renewables, something seems to be going on beyond our scope or control and it’s best to be prepared rather then the latter.

 

[bholler]

@bholler totally understand what your saying especially in today’s climate of things so to speak, but we are energy people here, whether it’s wood, coal, natural gas or renewables, something seems to be going on beyond our scope or control and it’s best to be prepared rather then the latter.

I know and that's why I let the thread up. But we need to stick to real info not rumors. I think allot of this worry is about nothing. If you look at his proposed policies and what he has said he is more concerned with developing alternatives than fighting to get rid of anything at this point. But only time will tell.

 

[begreen]

The post was definitely political and deleted. There will be major policy shifts coming. This quickly can become a slippery slope. If one wants to get into the nitty gritty of oil markets there are forums for that.

Energy & Oil Forums - Oil Price Community

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[kborndale]

And to think we were once energy independent. Not for long enough tho. A few months ago reg was under two bucks, now no less than $2.59/gal

Just crazy that gas is cheaper on Long Island than in Jersey now. I used to fill up every time I went to Jersey but I can still get gas on LI for $2.25.

 

[SpaceBus]

Not sure on the rumor part but there are some things that have been pushing up oil prices.

The Biden has said he is pulling the plug on the keystone Xl pipeline day 1 of his presidency. It may not make a direct impact but it defintely sets the stage for what I think will be a war on oil.

(broken link removed)

In addition OPEC and Russia have agreed to sustain the production cut from their last meeting,

Oil soars near $50 after OPEC and Russia agree to roll over production cuts | CNN Business

A group of major oil producers have agreed to keep production broadly steady in February and March as the pandemic forces some economies back into lockdown and governments struggle to distribute vaccines.

www.cnn.com

With the vaccine out, economies starting to reopen, and the war on oil, prices are sure to be trending up

Set the stage for the war on oil? That war started in the 70's.

 

[peakbagger]

Not sure on oil but natural gas used to go through a three year cycle. Supply gets short, prices go up, Rigs go back in the field and start drilling, gas starts flowing then supply opens up, then prices start dropping so rigs pull out and then the cycle starts all over again. This was before LNG. The world is now awash with LNG with countries who need the cash so it puts a cap on domestic prices.

The fundamental problem is without OPEC controlling the shots, if the price goes up, every supplier cheats and pumps more and the price goes down. If the various trends are telling the truth, the world is on the downslope of peak oil supply and demand starts to work differently The rest of the world didnt mind that the US was a net importer but they got greedy and let the price float up and then all the oil that had been economically stranded in old US oil formations suddenly got attractive to recover especially with newer technologies.Sure plenty of drillers have gone out of business on this round but new ones will pop up as soon as prices go up.

 

[Sodbuster]

@blades $10 a gal? I don’t think it will ever get that high, and to keep this as politically free as possible, and just me hypothetically thinking here, is there an agenda to follow China’s lead with the environment, I’ve been segwaying watching the energy crisis that government created when it blocked coal imports from Australia and how the poor people over there are suffering in record cold temps, government even took peoples wood away from them.

Never save never, the highest prices I remember reading about is in California where they went north of $5.00 per gallon; and remember that shortages can come into play, remember the gas lines, and the stations that were just out of fuel?

 

[blades]

We were horrified in 77 when gasoline prices shot to .79/ gal. here in WI. Yep, gas lines and only allowed 10 gal. at a time. Sold my Olds with the huge V8 for a VW bug. Of course everything else started climbing the price hike ladder as well- amazing how history keeps repeating its self.