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GasBuddy News Article


Refiners pinched as gas price falls faster than oil
Friday, November 21, 2008
USA Today -- Crude oil prices tumbled below $50 Thursday for the first time since May 2005 as jobless claims hit a 16-year record and financial markets sank.

But oil refiners, the chief buyers of crude, aren't celebrating. Gasoline prices are falling even harder and faster, so U.S. refiners are losing money on every gallon of gasoline they sell. Light sweet crude plunged 7% to $49.62 a barrel. Wholesale gasoline in the Gulf: $40.74 a barrel.

Such topsy-turvy economics have happened on occasion for a few days. But the current pricing turnabout has lasted seven weeks and could persist a few more months, says Tom Kloza, chief oil analyst with the Oil Price Information Service.

"It's unprecedented," Kloza says. Although refiners offset their gasoline losses with profits on diesel fuel, "if your feedstock costs more than your marquee product, you've got a problem."


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JT
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Message Posted: 11/21/2008 8:18:41 AM  Ignore JT Report Abuse
Friday, November 21, 2008
USA Today -- Crude oil prices tumbled below $50 Thursday for the first time since May 2005 as jobless claims hit a 16-year record and financial markets sank.

But oil refiners, the chief buyers of crude, aren't celebrating. Gasoline prices are falling even harder and faster, so U.S. refiners are losing money on every gallon of gasoline they sell. Light sweet crude plunged 7% to $49.62 a barrel. Wholesale gasoline in the Gulf: $40.74 a barrel.

Such topsy-turvy economics have happened on occasion for a few days. But the current pricing turnabout has lasted seven weeks and could persist a few more months, says Tom Kloza, chief oil analyst with the Oil Price Information Service.

"It's unprecedented," Kloza says. Although refiners offset their gasoline losses with profits on diesel fuel, "if your feedstock costs more than your marquee product, you've got a problem."

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REPLIES (newest first)
jcVA
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Virginia Beach

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Message Posted: 11/25/2008 1:50:30 PM  Ignore jcVA Report Abuse
ill give em a kleenex, they can pay me
maindrag
All-Star Author
Ontario

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Message Posted: 11/25/2008 11:15:42 AM  Ignore maindrag Report Abuse
They r not hurting. They have been ripping us off for years. No kleenex from me for the oil companies.
judgemobile
All-Star Author
Ohio

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Message Posted: 11/22/2008 11:35:05 AM  Ignore judgemobile Report Abuse
time for them to SPEND some of their ill gotten gains from last summer. They sure as HECK did not feel sorry for us when they raised prices day after day after day even faster than the price of the raw material went up. And now I should feel SORRY for them ???
RLH68
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Orlando

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Message Posted: 11/22/2008 8:25:17 AM  Ignore RLH68 Report Abuse
The refiners made big bucks when gas was US$4.00 a gallon, now since the big profit isn't there, they want us to feel sorry for them. NO WAY!!!
brutus
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Alberta

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Message Posted: 11/22/2008 7:58:28 AM  Ignore brutus Report Abuse
No sympathy from me.
Tnerbeel
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Houston

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Message Posted: 11/22/2008 7:57:26 AM  Ignore Tnerbeel Report Abuse
10-4 Prodaddy, it is what it is. Gotta take the bad with the good.
Raider44
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Allentown

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Message Posted: 11/22/2008 7:56:57 AM  Ignore Raider44 Report Abuse
They made a killing on the way up, so there's no sympathy here.
cudatim
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San Antonio

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Message Posted: 11/22/2008 7:55:46 AM  Ignore cudatim Report Abuse
They can live on the billions of dollars of profit they have stored in their tresury.
bu2erf1y
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Tampa

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Message Posted: 11/22/2008 7:54:34 AM  Ignore bu2erf1y Report Abuse
So what did they do with all the money they made these last few years?
WVUtailgater
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Pennsylvania

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Message Posted: 11/22/2008 7:52:25 AM  Ignore WVUtailgater Report Abuse
agreed
Zygnatz
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British Columbia

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Message Posted: 11/22/2008 7:52:04 AM  Ignore Zygnatz Report Abuse
They are still making a killing on diesel.
Prodaddy
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Houston

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Message Posted: 11/22/2008 7:51:00 AM  Ignore Prodaddy Report Abuse
I didn't hear them complain when gas was rising faster thane the price oil
jannicattu
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Dallas

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Message Posted: 11/22/2008 7:50:38 AM  Ignore jannicattu Report Abuse
ok
wiseguywood
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Indiana

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Message Posted: 11/22/2008 7:50:35 AM  Ignore wiseguywood Report Abuse
Lets all cry for the POOR refiners.....not!
Gassaver30
Sophomore Author
Austin

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Message Posted: 11/22/2008 7:50:19 AM  Ignore Gassaver30 Report Abuse
BOO HOO!!! They "screwed" us for a LONGGGG time!! About time they see what it feels like!!!
kdautobody
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Pennsylvania

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Message Posted: 11/22/2008 7:50:10 AM  Ignore kdautobody Report Abuse
I bet the ask for a bailout too!
fightbigoil71
Rookie Author
Milwaukee

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Message Posted: 11/22/2008 7:49:39 AM  Ignore fightbigoil71 Report Abuse
Enjoy the low gasoline prices while they last. I suppose the big oil companies will start whining that they can't invest money because their profits are disappearing. But they didn't invest proportionally more when their profits were so high in recent years.
AvantiMick
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Indiana

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Message Posted: 11/22/2008 7:49:27 AM  Ignore AvantiMick Report Abuse
OMG!! They may have to use some of the BILLIONS OF $$$ that they so easily took from us the last few quarters.
hank1326
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Los Angeles

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Message Posted: 11/22/2008 7:49:15 AM  Ignore hank1326 Report Abuse
Keep on conserving. More than ever. Be frugal with our spending as well. We need to make strong statements with our new buying habits.
Biogen
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Ventura

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Message Posted: 11/22/2008 7:46:27 AM  Ignore Biogen Report Abuse
Geezzz...
Hazelnut
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Greensboro

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Message Posted: 11/22/2008 7:46:18 AM  Ignore Hazelnut Report Abuse
Then big Oil companies are the problem not the refiners.
rylank
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Mississippi

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Message Posted: 11/22/2008 7:46:02 AM  Ignore rylank Report Abuse
poor refiners... too bad we dont care because of the way they have done business in the past...
arvo87
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New Mexico

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Message Posted: 11/22/2008 7:45:30 AM  Ignore arvo87 Report Abuse
need new news
DrakIII
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San Diego

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Message Posted: 11/22/2008 7:43:36 AM  Ignore DrakIII Report Abuse
Breaks my Heart. :o)
Hazelnut
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Greensboro

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Message Posted: 11/22/2008 7:42:17 AM  Ignore Hazelnut Report Abuse
Duuhhh? How did they make billions of dollars in profits?
cheapertvs
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Richmond

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Message Posted: 11/22/2008 7:41:37 AM  Ignore cheapertvs Report Abuse
As long as they can make a razor thin profit, it will be all right.
Gassie1
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Akron

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Message Posted: 11/22/2008 7:40:01 AM  Ignore Gassie1 Report Abuse
Oh please!
thwadi
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Cleveland

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Message Posted: 11/22/2008 7:39:41 AM  Ignore thwadi Report Abuse
Hard to believe.
If you sell the product at a loss, it is your choice.
Not many companies are in business for public service.
MajorSteve
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Oklahoma City

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Message Posted: 11/22/2008 7:36:34 AM  Ignore MajorSteve Report Abuse
Tears are falling all over!
drunkhabib
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North Carolina

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Message Posted: 11/22/2008 7:35:07 AM  Ignore drunkhabib Report Abuse
driver, very astute comment. I feel the same.

[Edited by: drunkhabib at 11/22/2008 9:35:27 AM EST]
Gellin
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Michigan

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Message Posted: 11/22/2008 7:33:29 AM  Ignore Gellin Report Abuse
I t seems like I was pinched for along time with gas prices. Now it's their turn. I only have to worry about not having much in my 401k now!!!
DriverDave
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Twin Cities

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Message Posted: 11/22/2008 7:33:11 AM  Ignore DriverDave Report Abuse
Not oil companies, you ignorant blockheads - REFINERS. Big difference. Valero is the largest refiner in the US, and their independent. There are many other refiners that aren't affiliated with oil companies. The large oil companies either have or are getting out of refining because there is very little profit in it.

Don't celebrate REFINERS losing money on gas, because if they go under, who's going to make the gas you so desperately want? Importers? LOL.... hand over your wallet if that happens, and that money won't even stay in the US. Be careful what you wish for, all you spiteful, hate-filled jackals who despise the BIGEVILOIL companies. And get a clue - go look at Valero's financial statements before claiming they make "billions in profit" - they made $.17 per gallon of gas last year. That's it.

[Edited by: DriverDave at 11/22/2008 9:35:01 AM EST]
amerk73
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Dallas

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Message Posted: 11/22/2008 7:32:53 AM  Ignore amerk73 Report Abuse
good the gas still high
RdHogg
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Houston

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Message Posted: 11/22/2008 7:31:43 AM  Ignore RdHogg Report Abuse
good
ArboretumCop
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Richmond

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Message Posted: 11/22/2008 7:31:41 AM  Ignore ArboretumCop Report Abuse
Aw, my heart pumps crunchy peanut butter for these thieves!
pokerz
Sophomore Author
Twin Cities

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Message Posted: 11/22/2008 7:31:28 AM  Ignore pokerz Report Abuse
offset losses??? wish i could have losses like that that make me rich!
Jizme
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Lincoln

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Message Posted: 11/22/2008 7:31:16 AM  Ignore Jizme Report Abuse
I just can't feel sorry for those refiners after billions of dollars in profits for so long.
ladyjj
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Tennessee

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Message Posted: 11/22/2008 7:30:01 AM  Ignore ladyjj Report Abuse
Man they made money and they know it! Mean while we all went broke just trying to get to work.
kyrunner
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Lexington

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Message Posted: 11/22/2008 7:29:32 AM  Ignore kyrunner Report Abuse
If refiners start cutting back they can effect the prices very quickly. Very interesting!
Matts_Pap
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Pennsylvania

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Message Posted: 11/22/2008 7:26:20 AM  Ignore Matts_Pap Report Abuse
They were also crying poor when the crude oil prices were high. I wonder if they have heard of the "Boy who cried Wolf."
BartBuzz
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Atlanta

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Message Posted: 11/22/2008 7:26:08 AM  Ignore BartBuzz Report Abuse
Oil companies are losing money? Now there's a good joke.
speedraider
Rookie Author
Orlando

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Message Posted: 11/22/2008 7:25:58 AM  Ignore speedraider Report Abuse
so what.
71chevelle454
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Ontario

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Message Posted: 11/22/2008 7:25:51 AM  Ignore 71chevelle454 Report Abuse
MAYBE THEY CAN USE THERE PROFITS FROM $147 A BALLEL OIL
Sharon69
Rookie Author
Mississippi

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Message Posted: 11/22/2008 7:25:50 AM  Ignore Sharon69 Report Abuse
i think it is ridiculous that diesel prices are higher than gas prices. and besides they are probably only upset right now because this interfers with a raise for themselves.
tags610
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Lincoln

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Message Posted: 11/22/2008 7:24:03 AM  Ignore tags610 Report Abuse
Seems like they always have a problem
Tonester1
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New Jersey

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Message Posted: 11/22/2008 7:19:45 AM  Ignore Tonester1 Report Abuse
My heart is not bleeding for them. They've made billions in the last year so they're just fine.
Sammy63
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Riverside

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Message Posted: 11/22/2008 7:19:26 AM  Ignore Sammy63 Report Abuse
By "Losing Money" do they mean only $5billion in PROFIT this quarter instead of last quater's $10billion?!?!

First rule - oil never looses money! They only miss projected revenue (50% vice 500% profit).

Second rule - when a commodity (oil, real estate ...) is artificially raised beyond its value for the purposes of greed only it always crashes down below its true value in the aftermath.
21597
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Colorado

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Message Posted: 11/22/2008 7:17:37 AM  Ignore 21597 Report Abuse
I smell a rat
tomok
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Portland

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Message Posted: 11/22/2008 7:17:01 AM  Ignore tomok Report Abuse
They are still making a profit - but just not as much as before...!
AlaRedNeck
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Kansas

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Message Posted: 11/22/2008 7:16:07 AM  Ignore AlaRedNeck Report Abuse
The falling prices aren't frre market competition at work. It's economies all over the world going in the tank. Thousands of jobs lost.
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