$4/gallon diesel?

[jmc]

An article in the Wall Street Journal Online today is saying that high fuel prices are due as much to limited refining capacity as they are to crude oil prices. (no new refineries built in the US since 1976) But below is the sobering last paragraph:

<font color="blue"> Given such margins, Philip K. Verleger, a senior fellow at the Washington-based Institute for International economists, says truck drivers in the U.S. may see diesel prices rise to $3 a gallon this winter, and to $4 a gallon in winter 2006. </font>

Also mentioned is that a world economic slowdown will remove some price pressure although high prices to date don't seem to have slowed the world economy so far.

 

[SkyPup]

Yes, I read that excellent article, maybe time to invest in Valero as they will be reaping high margins for quite some time now??? /forums/images/graemlins/wink.gif

 

[jmc]

Buy Valero? Maybe. Usually by the time it hits the papers its too late. I was thinking Cummins and Navistar. Why would you buy a diesel pickup unless gasoline goes up just as much?

 

[SkyPup]

I think Exxon, Chevron, and the other major energy suppliers are too late, however Valero has been on an acquistion binge and has been historically underrated due to the Street longterm thinking that refining would always be a low margin ball game, as it has been for the last forty or so years.

When the Street is wrong, those who do get it right do extremely well... /forums/images/graemlins/wink.gif

 

[LBrown59]

</font><font color="blue" class="small">( Buy Valero? Maybe. Usually by the time it hits the papers its too late. I was thinking Cummins and Navistar. Why would you buy a diesel pickup unless gasoline goes up just as much? )</font>
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Used diesel cars and trucks are valued $1000 less than gas vehicles in a used car price guide I have.

 

[johnday]

LBrown; I've owned a number of diesels and probably always will. I do alot of dragging trailers around, and so far, the only pickemups out there that I'm comfortable with are the diesels, particulary Navistar and Cummins. I can pull anything I've got with my little 3.0 Ranger, but towing is a different story. In this case, I'm basically stuck with a diesel. /forums/images/graemlins/frown.gif

I'd really like to know where all this is going to end up. As most of us can recognize, the price of fuel drives the costs of everything now a days. There isn't much besides air and rain that isn't moved by trucks at somepoint.

Just my ramblings at this time of day. /forums/images/graemlins/crazy.gif /forums/images/graemlins/grin.gif

 

[gsxr1100]

Diesel in my city just went UP to $2.44..gas is $1.98.....For the increase in $0.46 per gallon, you can have diesel......

I would need a car that gets 31 mpg just to break even with price. Nevermind upkeep, etc.