Discussions

Home
Discussions
Manitoba & Canada News & Events
so why are we paying more for gas, again?

so why are we paying more for gas, again?

Adam

Joined: Mar 2005
Posts: 15663

Adam
Joined: Mar 2005
Posts: 15663

Carbon tax
6/23/2022 at 9:36 PM

mikesims said "As a oil and gas worker prices were over 100 back in 2014 and gas was never this expensive. Only thing I see different is the carbon tax increasing the cost to refine oil . They say oil could hit 150 this year but who knows . Unfortunately there is nothing that can be done as we need the gas/diesel and our power grid cannot handle a huge influx of electric vehicles without an major overhaul. Again they do that and prices will rocket in other areas to offset the cost to upgrade. "
No shortage of people of particular political persuasion trying to pin this on gov, but oil prices and gas prices are a worldwide issue right now and I don't think care a ton about what controls Canada has in place to reign in our especially emission heavy brand of oil (in 2021 we were at about 6% of worldwide oil production). Biggest thing is that prices never would’ve spun this far out of control if OPEC wouldn’t have managed supply as tightly as they have through COVID.

I know some like to gripe about the carbon tax, but it and some of the policies to get our producers to cut back on emissions are helping Canada strike the kind of balance we need to going forward in order to still have an economy that benefits from O & G in a planet that’s becoming more and more conscious of emissions and how they have to be brought under control. Byproduct being that as our producers are able to show reductions in emissions they become more investable to many than they were when it was about getting the oil out at any cost to the environment.

I think you’ll see pump prices slowly bleed down if this drop in oil holds. As of now the uptrend I think is still technically in tact and there are still some that are holding out hope it’ll shoot another level higher from here, but look out if it loses a few more bucks. Good news for Canada is our producers would still be doing just great at $80 oil.

Interesting side note. In the last real true bear market for stocks a decade and a half ago, oil started off by running hot against the rest of the market before cooling and joining the party. History repeating?
WAFFLE222
Joined: May 2021
Posts: 22

WAFFLE222
Joined: May 2021
Posts: 22

GAS
6/24/2022 at 11:45 AM

I wondered if we would come down a bit.. a friend in Ontario let me know that she paid 1.87 for gas yesterday, they were up to where we are or maybe even more! so I thought that was hopeful with us coming down.
passingthru
Joined: Dec 2015
Posts: 29

passingthru
Joined: Dec 2015
Posts: 29

back in 2014 ...
6/25/2022 at 9:29 AM

oil companies weren't making these kind of profits either.
CleanKat
Joined: Jun 2009
Posts: 103

CleanKat
Joined: Jun 2009
Posts: 103

Gas?
6/27/2022 at 8:46 PM

When was the last time you pulled up to the pump and it smelt like gas? I used to smell gas as we pulled into the gas station. Can’t say I’ve smelt it in awhile
Adam

Joined: Mar 2005
Posts: 15663

Adam
Joined: Mar 2005
Posts: 15663

Oil
7/5/2022 at 10:26 AM

Big 7%+ drop in oil today to just over $100 as I type this. Was over $120 less than a month ago.
FWIW, Citi sees potential for an oil price collapse to potentially $65 toward end of year depending on if or how recession plays out. Big asterisk being that the scenario includes no intervention by OPEC+ producers...

https://www.bnnbloomberg.ca/citi-warns-oil-may-collapse-to-65-by-the-year-end-on-recession-1.1787738
Adam

Joined: Mar 2005
Posts: 15663

Adam
Joined: Mar 2005
Posts: 15663

Under supply
7/5/2022 at 10:44 PM

Chart in the tweet below says a lot about how prices have built to the point they’ve been at… intentional under production has created a supply-demand environment that’s supported price increases:
Sell your oil stocks pic.twitter.com/CzhUY9Vsum
— Martin Pelletier (@MPelletierCIO) July 5, 2022

For counter point to the Citi link above, Jp Morgan last week suggested a worst case scenario of as much as $380 a barrel depending on what happens with Russia:
https://www.bnnbloomberg.ca/jpmorgan-sees-stratospheric-380-oil-on-worst-case-russian-cut-1.1786803
Adam

Joined: Mar 2005
Posts: 15663

Adam
Joined: Mar 2005
Posts: 15663

Gas
7/6/2022 at 3:31 PM

Couple local stations down to 195.9... but if what's coming to Toronto tomorrow is any gauge, we should see it come down a little more than that still. Toronto supposedly to drop 12 cents Thursday:
https://toronto.citynews.ca/2022/07/06/gas-prices-drop-gta-toronto/
Adam

Joined: Mar 2005
Posts: 15663

Adam
Joined: Mar 2005
Posts: 15663

Gas
8/1/2022 at 8:17 AM

That 169.9 doesn’t look half bad when put up against 207.9, 18% off the peak, and getting toward the price range where we might not second guess longer road trips.

Oil looks like it wants to try another level down, starting the week down about 5% already this morning… call me a dreamer but I could go for a settling down around 130 eventually?

https://www.marketwatch.com/investing/future/crude%20oil%20-%20electronic
MotorCycleMan

Joined: Jul 2021
Posts: 24

MotorCycleMan
Joined: Jul 2021
Posts: 24

8/2/2022 at 9:30 AM

BuddyCthulhu said "Always interesting to see that when oil price jump up, the price at the pump follows soon after, the excuse being "we had to pay more for the oil". But apparently when they drop, prices are slow to come down because "we have to pay the price for stored oil at the higher prices". And if I'm wrong could anyone who knows economics or corporate process fill me in? "
The long and short of it it is corporate greed behind the guise of "delivering value" to shareholders to make up for lost profits from COVID. US oil corporations posted record profits in 2021.

The economics are the mental gymnastics to justify it.
Kida

Joined: Feb 2009
Posts: 470

Kida
Joined: Feb 2009
Posts: 470

Looks like I am staying home
8/4/2022 at 2:27 AM

Well it seems that Manitoba is sticking at it's price... Might just be marooned in Brandon...
Adam

Joined: Mar 2005
Posts: 15663

Adam
Joined: Mar 2005
Posts: 15663

Oil
9/7/2022 at 1:51 PM

Oil price with another level of big drop today.... with todays ~6% its now down more than 30% from the June peak to almost $80 a barrel for WTI. Still a ways to go to the sub-$1.50/L prices of pre Russian invasion:
https://www.marketwatch.com/investing/future/crude%20oil%20-%20electronic?mod=home-page