The strategic reserve will be sold at higher prices than it will be replenished at most likely. WTI crude closed at just under $100/ BBL on Friday, down from the peak of $123 on March 8th. I would expect oil will settle down around $80 in the coming weeks, especially if China continues locking down and peace talks continue to make some progress.
Releasing the strategic reserves seems symbolic but a good thing. Not sure Biden's chastising the oil companies for exploiting the situation will have any effect, but I think it's a step in the right direction. I would like to see some real reform in controlling the profiteering of companies during a crisis.
I won't mention Ganges Marina by name either as the place to get the highest cost fuel.Yesterday, at an unnamed marina in BC's Southern Gulf Islands, the diesel was C$2.559 per litre, which is about US$7.75 per gallon. No matter what happens to world/market oil price, BC will see another increase on 1 April for the annual carbon tax increase.
Australia imposes a federal 44.2c excise/tax per litre of fuel which was just halved for 6 months to lower current fuel costs and dare I say it,"assist" with the May federal election.Suspending fuel taxes is definitely a questionable band-aid. The strategic reserves, maybe, depending on how it's done. If it can cushion things a little to buy time for a production increase, or just cushion the worst demand spikes (and slowly refill during the dips), it'll help. But of course, it can only help so much (not a lot) and isn't a fix for the situation.
I don't blame the oil companies for the high price of crude, as you state, it is a global commodity. But they do have the ability to increase output and help to keep prices in check.
Have you looked at the 2021 4th quarter profits from the top 10 oil companies? Pretty much says it all. High oil prices have been a bonanza for them. And to make matters worse they are reducing the investment in new wells/equipment and doing more stock buybacks than investing to increase capacity. This won't help with capacity and at a time when customers are hurting they could do their part to keep prices down even if it means more modest profits. I won't hold my breath....
We also allegedly have a massive emergency reserve store of fuel,held not here but somewhere in USA. Only problem, I don`t think we have access to tankers which could get it here. Especially in a war. Always assuming it actually exists.
lwarden;1089945.... And to make matters worse they are reducing the investment in new wells/equipment and doing more stock buybacks than investing to increase capacity.....[/QUOTE said:I firmly believe in free market economics and every company's right to self determination...HOWEVER, if a company chooses to do a stock buy back, they should be ineligible for any government subsidies, tax breaks or incentive.
A new sign of the times. You see a good price on diesel, and you pump Their tank dry. Indian Town Marina was $4.50 a gallon after tax. 335 gallons later, they were out. I could probably haved squeezed another 60 gallons in, but no point in complaining.
Ted
I wouldn't have wanted to put that last 50 gallons of. . . . whatever into my boat. Hopefully it was all clean fuel!
I wouldn't have wanted to put that last 50 gallons of. . . . whatever into my boat. Hopefully it was all clean fuel!
Found putting fuel in a clear glass or plastic container and looking at it can be misleading..