Oil record nears $64
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Oil record nears $64
Oil prices hit a new record high near $64 on Monday after warnings of militant attacks in the world's biggest oil exporter Saudi Arabia and on worries about refinery outages in the United States. U.S. crude was up $1.29 at $63.60 a barrel at 1 p.m. ET after peaking at $63.99. London Brent crude was up $1.49 at $62.56 a barrel after touching $62.70.
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Re: Oil record nears $64
Interesting, a barrel of oil is 42 US gallons, and once refined gives 19 US gallons of gasoline. That means gasoline should cost (for the crude alone!) at least $3.37 a gallon.
By the way, a barrel of SVO is only $81. Just a little bit higher now for the price of dino-crude and it's going to be undercut by vegetable "crude"....
By the way, a barrel of SVO is only $81. Just a little bit higher now for the price of dino-crude and it's going to be undercut by vegetable "crude"....
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Joined: Mar 2005
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From: Dearborn, MI
Re: Oil record nears $64
Originally Posted by clett
Interesting, a barrel of oil is 42 US gallons, and once refined gives 19 US gallons of gasoline. That means gasoline should cost (for the crude alone!) at least $3.37 a gallon.
I seem to recall from chemistry that crude is composed of hydrocarbon chains of varying lengths -- lots of carbon atoms chained together and capped by a hydrogen molecule on each end of the chain. The longer the chain, the heaver the oil (asphalt being a very long chain), and the very short chains make lighter oils and fuels.
They can put the oil into a hydrocarbon "cracker" - which breaks a chain. Available free hydrogen molecules will readily attach themselves onto the broken ends of the chain. This is also the same reason why a 40W engine oil needs to be changed after lots of driving (the oil is breaking down into thinner oils which aren't adequate to lubricate the engine anymore -- and it's because the carbon chains are breaking).
So... I may be wrong because I don't work in the oil industry, but I suspect they're getting an average of 19 gallons of gasoline, but also quite a few other fuels and oils as well. If that's true, then they don't have to recoup the full cost of the barrel on the value of the gasoline alone.
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Joined: Apr 2005
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From: Coquitlam, B.C.
Re: Oil record nears $64
There's a LOT of kerosene being used for flying jets non-stop, plus all the military operations use it, so that covers much of the remaining non-gasoline output from a barrel of crude, not to mention all the other various products that come from refining.
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Joined: Apr 2005
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From: Lewisville (Dallas), Texas
It Got Over $65
Fortune Story
Oil went over $65 a barrel, then came down to around $64.50. Other reports predict pump prices will not drop in 2006.
Oil went over $65 a barrel, then came down to around $64.50. Other reports predict pump prices will not drop in 2006.
Ridiculously Active Enthusiast
Joined: Jul 2004
Posts: 1,430
From: Phoenix, AZ
Re: Oil record nears $64
Let's face it folks - the days of $1.50 gas ended in about January 2004, which is the last time it was that low in Phoenix.
If we ever see $1.75 again we will be lucky.
Buy a Hybrid now and hedge your bet !!!
If we ever see $1.75 again we will be lucky.
Buy a Hybrid now and hedge your bet !!!
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Re: Oil record nears $64
