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View Full Version : Fuel Analysts See $10/gal Gasoline In America's Future


Richard Tafoya
Apr 28th, 2008, 01:22 PM
New York Sun:
http://www2.nysun.com/article/75363

Gasoline nationally is in an accelerated upswing, having jumped to $3.58 a gallon from $3.50 in just the past week. In some parts of the country, including New York City and the West Coast, gas is already sporting a price tag above $4 a gallon. There was a pray-in at a Chevron station in San Francisco on Friday led by a minister asking God for cheaper gas, and an Arco gas station in San Mateo, Calif., has already raised its price to a sky-high $4.62.

In Manhattan, at a Mobil gas station at York Avenue and East 61st Street, premium gas is now $4.03 a gallon. Two days ago, it was $3.96. Why such a high price? "Blame the people at STOPEC (he meant OPEC) and the oil companies," an attendant there told me.

These increases are taking place before the all-important summer driving season, signaling even higher prices ahead.

That's also the outlook of the Automobile Association of America. "As long as the price of crude oil stays above $100 a barrel, drivers will be forced to pay more and more at the gas pump," a AAA spokesman, Troy Green, said.

Oil recently hit an all-time high of nearly $120 a barrel, more than double its early 2007 price of about $50 a barrel. It closed Friday at $118.52.

The forecasts calling for a jump to between $7 and $10 a gallon are based on the view that the price of crude is on its way to $200 in two to three years.

Translating this price into dollars and cents at the gas pump, one of our forecasters, the chairman of Houston-based Dune Energy, Alan Gaines, sees gas rising to $7-$8 a gallon. The other, a commodities tracker at Weiss Research in Jupiter, Fla., Sean Brodrick, projects a range of $8 to $10 a gallon.

Whoda Thunk?
Apr 28th, 2008, 02:14 PM
If that happens, this country is in a world of trouble. I wouldn't be able to get to work and back, much less buy groceries. It's already out of control.

Incident
Apr 28th, 2008, 02:22 PM
If the price of oil gets to be anywhere near $200 bbl, even the Liberals will be demanding that we start drilling in Alaska and off the coast of California.

Venisenvy
Apr 28th, 2008, 03:24 PM
I truly truly hope that is not true, otherwise americas lower class and middle class will be royaly screwed.

tiger_rascal
Apr 28th, 2008, 03:25 PM
Why is the price of oil going up so much, so high, in such a short amount of time?!

Incident
Apr 28th, 2008, 03:46 PM
Why is the price of oil going up so much, so high, in such a short amount of time?!

IMO


The sinking dollar is making most things in terms of dollars more expensive.
Commodities are now being used as an investment vehicle much more now than before, so investors speculating in oil are driving up the price.

Richard Tafoya
Apr 28th, 2008, 03:48 PM
And because those that have it are faced with increased global demand and are in a position to use pricing as a way to:
1) Maximize their profit while their product is popular, and
2) Protect their finite supply by using pricing to deflect some of the demand.

Regis Philbin
Apr 28th, 2008, 06:14 PM
If the price of oil gets to be anywhere near $200 bbl, even the Liberals will be demanding that we start drilling in Alaska and off the coast of California.

If we would have started drilling there way back when we'd be pumping that oil now and the price wouldn't be so high. Oh, and a few new refineries would be nice too. We haven't built a new refinery since 1976.

Thank you, watermellons! :rolleyes:

Regis Philbin
Apr 28th, 2008, 06:16 PM
IMO


The sinking dollar is making most things in terms of dollars more expensive.
Commodities are now being used as an investment vehicle much more now than before, so investors speculating in oil are driving up the price.


Exactly.

Investors are buying oil futures instead of dollars as an inflation hedge.

It doesn't help that China and India are guzzling oil like crazy now and that puts a pinch on supply.

DoubleEdgeSword
Apr 29th, 2008, 01:31 AM
I guess all those rebate checks will be going into gas tanks and ultimately on to the top exporters of crude oil to the US:

Canada
Saudi Arabia
Mexico
Nigeria
Venezuela

http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/import.html

James Dean
Apr 29th, 2008, 11:57 AM
This is costing more than my cell phone bill (even when I go over minutes).

tiger_rascal
Apr 29th, 2008, 12:05 PM
:roll:

Thats funny, but its not. :(

db44
Apr 29th, 2008, 12:12 PM
It won't hit $10 in the near future. Bush is almost gone and none of the candidates, even McCain, have the same relationship with the people hurting us that he has.