Fuel prices

[5288IH]

On 9/11/2026 at 10:34 PM, Lazy WP said:

What are the freight rates there? You have to be able to pass the cost on. Rates should be up around $7/mile, but during Covid, the US brought in 2,000,000 unqualified/undocumented people who “own” their own transportation companies. Then we gave them personal loans to buy their trucks. And we have brokers who are double brokering loads from the Middle East. 
Needless to say, our transportation system is in desperate need of repair. 

About $12-13 a mile, you really think about moving stuff. Ordered a sprayer originally going to charge $2,500 then jacked it up to $6,000 told them they could keep it, got it for $3,200 cartage, fuel is not 100% of cost.

[acem]

4 hours ago, searcyfarms said:

i just dont understand why things are the way they are with fuel prices, so many theories, so many blames/finger pointing, it doesnt matter who is the pres, i think its so far out of their control people are foolish to thing someone in office is going to have an effect on it, its been too big and out of control for so long no one can reel it in. Big Oil controls US no one controls them.

A substantial percentage of the worlds oil and refined products (fuel) are not available for the world market because of the conflicts in the middle east and Ukraine.  Additionally several large producers in Canada are down for maintenance.  Supply and demand are at work and supply is tighter than Daisy Duke's shorts! (got some pics to load).

Several countries are tapping their Strategic Oil Reserves to keep supplies up somewhat.  We are blowing through them and they are only so big.  If they slow the flow from these reserves for whatever reasons, the prices will go up substantially.  Even if there is serious talk about slowing the supply from the reserves.

An extended amount of time without flow from the Persian Gulf or Russia could result in $10 diesel.

Exxon would make a killing.

 

[Alan Dinan]

57 minutes ago, acem said:.

Exxon would make a killing.

Ding ding ding!! They already are. Big oil companies have been making record profits for the last few years now. 

[TomH]

9 hours ago, Alan Dinan said:

Ding ding ding!! They already are. Big oil companies have been making record profits for the last few years now. 

Exxon Mobil recorded a profit of 12.5 Billion in the most recent quarter. More than double from the previous year. Chevron is right behind them. The more we pay the more they make while producing less.

[Alan Dinan]

2 hours ago, TomH said:

Exxon Mobil recorded a profit of 12.5 Billion in the most recent quarter. More than double from the previous year. Chevron is right behind them. The more we pay the more they make while producing less.

Class action lawsuits need to happen 

[jeeper61]

23 hours ago, searcyfarms said:

i just dont understand why things are the way they are with fuel prices, so many theories, so many blames/finger pointing, it doesnt matter who is the pres, i think its so far out of their control people are foolish to thing someone in office is going to have an effect on it, its been too big and out of control for so long no one can reel it in. Big Oil controls US no one controls them.

Saudi Arabia did not defend its pipeline and the straight its oil passes through seemed kind of strange.

But the real reason is the bottom line the more oil costs the more they make.

The US not being dependent on foreign oil would be great but we have off shored so much stuff that if we did not export our oil we wouldn't be getting any of the stuff we off shored 

[brahamfireman]

2 hours ago, Alan Dinan said:

Class action lawsuits need to happen 

Why? Supply and demand is working.

If anything you should be mad at California for closing 3 refineries in the last few years. 

Severe lack of refining capacity is driving diesel prices.

[cobfly]

1 hour ago, brahamfireman said:

Why? Supply and demand is working.

If anything you should be mad at California for closing 3 refineries in the last few years. 

Severe lack of refining capacity is driving diesel prices.

Yep. A lot of our crude gets exported and we import crude that we can refine. Venezuela sour crude will help, but we're a couple years out. California is importing finished fuel. It's a mess.

[Skagit Farmer]

I know it's popular to trash the oil companies, but I'm going to defend them.

Every business shoots for a 10% ROI (return on investment).  ExxonMobile had a ROI in 2025 of 10.6%.  The recent quarter ending June 30 their ROI was 10.7%.  That means if they had a profit of 12.5 billion, they spent about 125 billion to make that profit.  Don't let the big numbers influence the argument.  That 125 billion they spent went to materials, labor, regulation, marketing, and all the other costs associated with the business.  That 125 billion went into the economy.

I have stated before contrary to popular belief, the oil companies do not set the price of crude oil.  The commodities traders do.  OPEC has a large influence on the price of crude oil, being that they increase or decrease production to keep the price where they want it.  Where do they want the price?  Not so high that refiners won't buy, but not so low that it is not economical to drill for it. 

The oil business is and always has been a boom and bust business.  Some years they lose money (gasp!) and other years they make money.  Handling millions of barrels of highly flammable liquids and gasses each and every day is a dangerous business.  Over all I think they do a pretty good job, after all they don't make money by having explosions and fires.

Don't like the oil companies?  Boycott them.  Lets see how long you last without the products that fuel the entire world.

[cobfly]

I would like to make 10% roi on my operation. Nothing wrong with that.