Why doesn't diesel fuel decrease in price?

[JDgreen]

Locally, diesel has been selling for close to $4.30 a gallon for several months, while gas got as high as $4.20 per gallon recently, and slowly went down to about $3.70.

What is the reason???? Why doesn't diesel go down in price?

 

[twall]

I would suspect speculators. Why is crude down, yet we don't see gas going down to match it? Has production increased in cost? Can any of these prices be justified? No, they can't.

Long and the short of it: we need diesel more than gas. Diesel runs our OTR rigs, our trains, our generators, our UPS and FEDEX trucks, and just about anything else we depend on. They finally caught on.

Speculators wreck everything. :thumbdown::thumbdown::thumbdown:

 

[JDgreen]

I would suspect speculators. Why is crude down, yet we don't see gas going down to match it? Has production increased in cost? Can any of these prices be justified? No, they can't.

Long and the short of it: we need diesel more than gas. Diesel runs our OTR rigs, our trains, our generators, our UPS and FEDEX trucks, and just about anything else we depend on. They finally caught on.

Speculators wreck everything. :thumbdown::thumbdown::thumbdown:

Twall, I see the reasoning behind your answer but I think we consume much more gasoline than diesel fuel You would think that given a lower demand for diesel fuel there would be a price break someplace in the supply chain. I posted the same query on TBN gonna head over there now to see what responses were left.

 

[twall]

All I can say is nothing in the market works like it should when speculators are involved. Unfortunately, commodities like fuel, electricity, and gold (just to name a few) are their playground.

They are evil, greedy swine that will stop at nothing to make a quick buck.

 

[KennyV]

Diesel has dropped to $3.88 has been there for over a wk...
Don't really expect it, or gas, to stay down as we get into summer ...

Futures market players deserve every loss they get & then some... :smile:KennyV

 

[LandN]

Diesel has dropped to $3.88 has been there for over a wk...
Don't really expect it, or gas, to stay down as we get into summer ...

Futures market players deserve every loss they get & then some... :smile:KennyV

what is a futures market players?

 

[twall]

...Futures market players deserve every loss they get & then some... :smile:KennyV

Futures market players = speculators. Just a fancy name.

 

[LandN]

do speculators differ from traders?

 

[twall]

do speculators differ from traders?

Slightly. ONLY slightly. On the DARK side of slightly, mind you.....:wink:

 

[KennyV]

Watching 'future players' is about as frustrating, and 'entertaining', as watching dreamers play poker. (funny for a little while, then just very annoying), everyone has a 'secret plan':laughing:....
Fortunately with the economic down turn ... there are less of these weasels wasting other peoples money... but there are still some playing at things they know little about... and it can influence the market... :smile:KennyV