RH 4,211 Member · Posted March 30, 2020 Share Posted March 30, 2020 TL;DR: The world is crazy right now, for multiple reasons. How cheap might gas get? Long Rambling Text Wall. Unproofed! Read at your own risk or in case of severe bordem: We are in a very interesting time for many reasons. Obviously, with the COVID running havoc in the world, nobody is going anywhere. We're suppose to be on a full lock down starting this afternoon here in NC. I'm honestly not sure how it's changing since it was already suppose to be a quarantine, but now we can do even less as of this afternoon. Yesterday my wife and I did some final shopping before today. We had to do some pick ups where, as I'm sure you are all aware, associates now come and bring your pre-ordered items to your car. There was nobody out on a Sunday afternoon and around here, that is super odd. People like to do stuff on Sunday afternoon. Driving around we were able to seethe gas prices and how in a matter of weeks, they've dropped by about $.50. I'm sure it's even higher from the start of the year, and that's probably a decrease of around $1.00 a gallon from where it is now, which is about $1.60/gallon. Supposedly, Russia and Saudi Arabia are also in a "production war". I don't claim to be an expert and if you've been watching or reading the news, you probably know as much as I do this topic. If the two of them are looked in a game of "oil chicken", then oil production can get really crazy... in a time where no one in the world needs a lot of oil anyway because we're not driving anywhere. I try not to quote headlines without even skimming articles and worse, I try not to mention them without remembering the reference but since this is just idle chitchat, I'll mention that I did see a headline state that we could get to the point where we are globally producing so much oil that we don't even have any place to put it, including reserves. "Barrels" may need to be practically given away. I have intended to read up on this topic more thoroughly lately but, ironically, I've not had the time. Anyone else moderately interested in oil markets and how they run the world? Where do you think this might bottom out at the pumps? I have no clue. I'll give a random guess of a national average of around $.75 a gallon. That might feel impossible, but I assume the major problem is that you usually can't just shut down big production plants for goods like oil. You can scale back production flow up or down but shutting down complete facilities is a huge problem. So the supply has to go somewhere. Reducing gas prices to near-zero profit is one way to try and dump supply. I honestly have know clue what that equates to at the pump for us Joe Schmoe consumers, but I think it could get really, really cheap if all of these factors are true with Russia and Saudi Arabia. We'll see. Link to comment Share on other sites More sharing options...
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