Gas prices falling...

http://www.nymex.com/CL_spec.aspx


"Jim Burns" wrote in message
news
Without finding a better definition, wikipedia offers this:
a.. 'Physical delivery' - the amount specified of the underlying asset of
the contract is delivered by the seller of the contract to the exchange,
and
by the exchange to the buyers of the contract. Physical delivery is common
with commodities and bonds. In practice, it occurs only on a minority of
contracts. Most are cancelled out by purchasing a covering position - that
is, buying a contract to cancel out an earlier sale (covering a short), or
selling a contract to liquidate an earlier purchase (covering a long).

Here's the nymex light sweet crude details, including the delivery point
(Cushing, OK) quantity (1,000 barrels) and delivery methods. It is a
physical delivery contract.

It's interesting that if a delivery purchase contract can not be matched
with a delivery sale contract, that the exchange randomly picks, ususally
from the largest long position holder, a contract to force delivery to the
buyer.

Jim

In article .com,
says...
In the last couple of weeks, gas around here (Iowa) has dropped 10%,
back down into the $2.70 per gallon range. (This is mogas, obviously
-- the only stuff I'll burn in my plane, if I have a choice.)

I actually paid $2.67 per gallon last night.

Wouldn't sweat too much - 'bout $9 per gallon (I assume you're talking
US gallons) in New Zealand (erm... that's avgas I'm talking too).

I got that from:
http://www.aeroclub.co.nz/prices.html

Which was all I could find, re avgas price.

Normal (mogas)...
http://www.pricewatch.co.nz/

I multiplied by 3.8 to get a US gallon.

--
Duncan

Wouldn't sweat too much - 'bout $9 per gallon (I assume you're talking
US gallons) in New Zealand (erm... that's avgas I'm talking too).

Wow. Is that due to excessive tax -- or some other economic factor?
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

Wouldn't sweat too much - 'bout $9 per gallon (I assume you're talking
US gallons) in New Zealand (erm... that's avgas I'm talking too).

Wow. Is that due to excessive tax -- or some other economic factor?
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

("Jim Burns" wrote)
You've got a great question about the % of each type of fuel consumed. I
hope somebody finds that answer it would be very interesting.


This is why I asked:
"The big news was that the terror threat poked a hole in the fuel bubble by
questioning how much fuel the airlines would be using."

To which I wonder, how much do they normally use?

http://www.eia.doe.gov/oil_gas/petroleum/info_glance/petroleum.html
Found below link at this site.

http://makeashorterlink.com/?N292153AD
(Same link as below ...wait for it)

http://www.eia.doe.gov/pub/oil_gas/petroleum/analysis_publications/oil_market_basics/dem_image_us_cons_prod.htm
Info for 2004


Montblack

Jay Honeck wrote:
why is the price of gas dropping so fast
right now?.
--

Summer is over? (vacation driving season?)

Just a guess..

You can follow the wholesale price, at
http://www.bloomberg.com/markets/com...rgyprices.html

http://www.bloomberg.com/news/markets/energy.html

Also look up the Energy information office. They release weekly
inventory number every wednesday at 1030 am. The markets always react to
that. The markets haves dropped in the last week or so due to the cease
fire in Lebanon, and due the fact the gasoline inveontries increased in
the past week by 400000 barrels. The market did not expect this.

The other thing which influences fuel prices is hedge funds. These
parasites are basically speculators. We are currently in a contango
situation. The contacts in the future are more expensive than the spot
price. So you can make money by buy oil on the spot market, storring it,
and buying a contract to sell it a few months out at a profit, with a
futures contact.

Follow the market for a while on the above websites and you will get a
bit of a feel for it.

James.

Jay Honeck wrote:
In the last couple of weeks, gas around here (Iowa) has dropped 10%,
back down into the $2.70 per gallon range. (This is mogas, obviously
-- the only stuff I'll burn in my plane, if I have a choice.)

I actually paid $2.67 per gallon last night.

With all the problems related to the Alaska pipeline, this is exactly
the OPPOSITE action everyone predicted. I'm not complaining, mind
you, but I *am* confused -- why is the price of gas dropping so fast
right now?.
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

Summer is over? (vacation driving season?)

Just a guess..

Gas price this morning in Iowa City: $2.59 per gallon.

Never thought I'd be happy to see *that* price -- but it sure beats
$3.00!
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

Iowa's state and federal combined gasoline tax is 39.5 cents, Wisconsin's is
49.5 cents... a dime different, but with the higher basis and transportation
in Wisconsin, I doubt if we'll see $2.75 here. Maybe on the eastern side of
the state, but most of the center and north western part of Wis is fed by
the Koch pipeline and fuel coming out of that pipeline is consistently ten
cents per gallon higher. Drive 20 miles east of here and you can see the
immediate change in prices.

I had an interesting conversation yesterday with our ag operator. He was
discussing the fuel supply and price issues with his supplier and passed on
some interesting info.

To transport 100LL, either by pipeline or by truck, 100LL must be preceded
and followed by gasoline, no diesel, no kerosene, no jet A ect. To
transport Jet A, it must be preceded and followed by a diesel type product,
no gasoline. Mogas, diesel, kerosene can all be preceded and followed by
each other. So this creates an additional burden especially in areas of low
100LL or Jet A usage.
Jim

"Jay Honeck" wrote in message
oups.com...
Summer is over? (vacation driving season?)

Just a guess..

Gas price this morning in Iowa City: $2.59 per gallon.

Never thought I'd be happy to see *that* price -- but it sure beats
$3.00!
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

Jay Honeck wrote:
Summer is over? (vacation driving season?)

Just a guess..


Gas price this morning in Iowa City: $2.59 per gallon.

Never thought I'd be happy to see *that* price -- but it sure beats
$3.00!
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"

I just paid $2.56 with my grocery store discount card. Right now the
100LL at my airport is $3.61/gal and the FBO said the new load this week
may drop by $0.20/gal. I told him I would fill up after the new load.

--
Regards,

Ross
C-172F 180 hp
KSWI