Gas at $6/gallon?

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Will the price of oil rise to $120/barrel? Will gas at the pumps get to $6/gallon? Your predictions please.
 
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buzzcut:
Will the price of oil rise to $120/barrel? Will gas at the pumps get to $6/gallon? Your predictions please.
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Ever? Yes. Soon? Probably not.
 
I think politicians will start with statements that we ought to have gas tax holidays. The media will happily report those sentiments. Then someone will get the idea to campaign on lowering our crushing gas tax. They won’t get elected.
 
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Pug:
I think politicians will start with statements that we ought to have gas tax holidays. The media will happily report those sentiments. Then someone will get the idea to campaign on lowering our crushing gas tax. They won’t get elected.
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Agreed. It will be interesting to see what happens in Hawaii with their new gas price ceiling. I predict a lot of unhappy Hawaiians, when the stations can’t afford to buy/sell gas.
 
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buzzcut:
Will the price of oil rise to $120/barrel? Will gas at the pumps get to $6/gallon? Your predictions please.
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Gas will slowly rise to maybe $12 per gallon. At that point, our hard-working Chinese friends and their booming economy just won’t have the oomph to compete for gas at higher prices, and it will stabilize.

In the meantime, the $12-per-gallon price will force coal gassification, over here. The Rocky Mountains have about a 100 year supply of brown coal in them, our economic ace in the hole. This capacity will be re-developed (the technology already exists) and the price will further stabilize.

The larger problem with burning oil and coal really is beginning to be global warming. On the average, storms in the world are 50% larger, because of the increasing temperature differential between land and sea due to global warming. Florida will probably get hammered by more and more powerful storms. As extreme as it was, the scenario in the movie The Day After Tomorrow is actually beginning to occur, a little bit!
 
I don’t know what’s going to happen, but I don’t see much price relief in sight, even after the labor day weekend.

I put $10 worth of gas in my little toyota corolla yesterday, and only got a quarter tank of gas for it. argh.
 


WIth prices THAT high, I am sure we will see more people on the Forums!
 
I’m sure it will get that high, if they want it to. Here is nw. Ohio it is $2.70 for the cheaper stuff. (About like water). In time, this will shut the whole country down.
 
I am not really sure. I am more careful with driving. The reports are saying it doesn’t make a difference yet, but it does in my life. I try to combine trips to the store and avoid unnecessary trips. I know my next car will be a hybrid. I remember the gas lines in the 70’s, and I guess it could happen again.
 
You do know this is what they pay over in Europe/UK, right? I remember once I forgot to fill up before leaving the base (where we paid US prices, I think it was $.44/litre) and had to stop and get 4litres on the way home…it cost me 5lbs, which at the time was equal to $7.50!!! For ONE gallon of gas…:eek:

Needless to say, that was the one time THAT happened…I bought vouchers the next day (you paid US dollars for US priced gas and could use them at british petrol stations…)
 
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rlg94086:
Agreed. It will be interesting to see what happens in Hawaii with their new gas price ceiling. I predict a lot of unhappy Hawaiians, when the stations can’t afford to buy/sell gas.
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bet they can’t afford to drive to California now:nerd:
 
Not that I am trying to be part of the kook fringe, however, it seems to me that the real cause of the gas price spike is the speculators in the market who are playing a game to drive and keep the prices spiraling higer and higher.

could it be that George Soros and his billions are behind the speculative bid up. This is the same guy that nearly destroyed the British Monetary system and has pledged his wealth to destroy George Bush. Could he be using his financial muscle :hmmm:
 
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leaner:
You do know this is what they pay over in Europe/UK, right?
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Yes 🙂

The price here has pretty much always been between two-and-a-half and three times as expensive as in the USA.

Fortunately, I don’t drive 🙂

Mike
 
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Cubsfan:
Not that I am trying to be part of the kook fringe, however, it seems to me that the real cause of the gas price spike is the speculators in the market who are playing a game to drive and keep the prices spiraling higer and higher.
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Yes, this is the part that I have never underestood.

Going back to the weeks before Katrina caused supply disruptions–even in earlier months, retail prices were spiking 10 cents in a day.

Now, in general people just don’t change their gasoline buying habits that much on a daily basis, so how was that supply and demand? Retail demand was pretty constant.

But gas stations are buying from wholesalers and oil companies. How are those prices established?

I presume that there are lots of people with money to spend who don’t mind plunking down thousands of $ (on margin) to trade in oil futures, paying $50/barrell for oil that they never intend to take delivery of, but rather sell the contract tomorrow or next week for $60 or $70, pocketing a tidy profit for a paper trade.

Now, if they want to speculate, fine. But those commodity market transactions aren’t unrelated to the real world. They apparently instantaneously affect spot prices that wholesalers and pipeline companies charge.

That’s the only reason I can think of why prices should be so volatile for a product where retail demand is not that volatile on a daily basis.
 
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Cubsfan:
could it be that George Soros and his billions are behind the speculative bid up? This is the same guy that nearly destroyed the British Monetary system and has pledged his wealth to destroy George Bush. Could he be using his financial muscle? :hmmm:
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Maybe so, or it might be aliens from Zarkon who are behind the rise in fuel prices. One never knows. :hmmm:
 
If I were in a position of leadership right now (which I’m not, but one can speculate), I would say let gas keep going up for the time being. I’d just let the gas stations charge whatever they could get away with.

They are concerned that we don’t have enough refined fuel in store and don’t have the capability of making the refined fuel from the crude oil we do have in store fast enough. They are saying air traffic will come to a halt in two weeks and the economy will crash in 4 if people don’t conserve the refined oil.

So… I’d say let it spike so that people will buy less of it. Hopefully the high prices will keep people away from the pumps in the short term and the crude oil will have time to be refined. Then start discussing the lowering of the price once the stability of the economy is assured.
 
I’ve heard some people who argue against any government action to bring prices down, even including voluntary profit reductions by oil companies. Their theory is that such artificial price reductions will only lead to gas lines later, by reducing incentives for production.

I’ve also heard that new refineries have not been built because the capital investment costs are too high for the current return. And that only higher prices would justify building new refineries–by making them more profitable.
 
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