WTI Futures are now under $70 Barrel and falling

[Melon]

Brent has slid to $73.
With the release of Middle East supplies the short term market will swing from tight oil to long oil quickly. This has been coming and very visible in the numbers especially over the last month. 2027 looks long as well with an overhang of ~3-4 million barrels a day if the world returns and slightly grows from earlier consumption levels.

Gasoline will be cheaper tomorrow for some time to come as these numbers work through the supply chain.

[Ilsa]

1. I wonder if investors are trying to rescue

this presidency by hoping the MOU holds and finalizes into an open strait.

[Melon]

2. Not at all. The numbers have been sliding for weeks.

Oil is a global commodity. There has been way too much fear mongering not based on the actual drivers. Exxon saying at the beginning of the month that oil could go to $200 was corporate shilling.

[31j20b3]

3. And Trump's Iran Surrender was all about keeping that slide going

Here in suburban Milwaukee, I filled the tank yesterday on Clark Stations gas at 3.45 per gallon

Now that's really interesting because there is a Wisconsin State Law that prevents gas stations from undercutting their competition.

The folks behind that pricing are convinced that they are in the clear dropping 25 cent's per gallon below the regional average

[Melon]

4. That's crazy to me that a law was passed that limits competition

Pricing drives business and it’s to the benefit of the consumer. But, I’ve never heard of that.

Edit: I looked up the law. It doesn’t stop you from lowering prices below competition. It sets a fixed floor margin to prevent large chains from dropping the price lower than what the small stations can buy at. It prevents a gas station from pricing at negative margins to shut down competition.

I’m not looking at what I can’t compute. I’ve been discussing global oil and feedstocks for the last months with large corporations and some oil producers.

The oil numbers look long with the release of Middle East oil. The trades have been dropping in price for weeks. There will be a rebuilding of inventory but oil will likely drop first.

[31j20b3]

5. well, people frequently ask WHAT HAPPENED TO WISCONSIN

that law was passed back in the 30''s when national chain gas stations were working hard t push out independents

And THAT sort of thinking is how Wisconsin Happened

[Melon]

6. Yes. I just read that and edited into my post.

It protects consumers by preventing large chains from pricing at no margins until the competition shuts down and then raising prices. It basically sets a floor. I would imagine most stations price above the minimum margin.