Got Gas? U.S. Economy to Worsen as Gas Prices Skyrocket

[Darwin333]

Also from the same article



Those posting from Utopian parts of the country should shut the fuck up

Obviously it is their fault that your gas prices are so much higher than theirs.

 

[Engineer]

Oil down to the $109.xx range (about $3 drop today). Don't know why yet (just CNBC ticker).

 

[shangshang]

a bad US economy would mean less American influence around the world. Probably a good thing for most.

 

[desy]

The IMF is bearish on the world economy, killing demand. . .

 

[dmcowen674]

Stations surrounding me in Chicago at or over $4.50 for regular

http://www.chicagogasprices.com/GasPriceSearch.aspx

Price Station Area

$4.59 BP
755 W Lawrence Ave & Marine Dr & Clarendon Ave

Chicago - North

$4.49 BP
1607 W Fullerton Ave & Ashland Ave (Clybourn Ave)

Chicago - North

$4.47 Shell
4000 N Pulaski Rd & Irving Park Rd

Chicago - NW

4-11-2011

http://chicago.cbslocal.com/2011/04/11/gas-prices-climbing-toward-5-per-gallon/

Gas Prices Climbing Toward $5 Per Gallon


At one time, $5 per gallon gas seemed like a farfetched idea, but that is no longer the case.

Some experts say $5 per gallon gas is possible by Memorial Day

The sharply rising prices hearken back memories of the summer of 2008.


That year, oil prices were driven well above $100 per barrel, and in June of that year and gas prices were well over $4 a gallon.



The highest average record price was $4.34 per gallon, set July 2008.

 

[Whoozyerdaddy]

Here ya go Dave... Drudge works like you do. He's posting a pic on his front page of the gas station in Paia, Maui... the most expensive gas in the country and aplying it to everyone. Do you guys golf together?

Edit: Cut the pic before it was replaced...

 

[Engineer]

US gas useage drops 3.6% from one year ago (week of April 1st).

Just a matter of time until the gas price collapses or it takes the economy down with it and then collapses.

 

[Imp]

US gas useage drops 3.6% from one year ago (week of April 1st).

Just a matter of time until the gas price collapses or it takes the economy down with it and then collapses.

Saw a story on CNN about that last Friday. Analysts are expecting a dump down to $90-$100 a barrel at some point as the demand just isn't there right now. Still, nothing stopping speculators from pumping up the price.

 

[dmcowen674]

4-11-2011

http://www.cnbc.com/id/42532489

Trump: Obama Is to Blame For High Oil Prices


Real estate developer Donald Trump blames President Obama for the rising price of oil, warning, "this country can never, ever recover" if oil prices continue to go up.

He contended that Obama is not a leader and is "in bed with these (OPEC) people.

 

[Doppel]

Stations surrounding me in Chicago at or over $4.50 for regular

http://www.chicagogasprices.com/GasPriceSearch.aspx

Price Station Area

$4.59 BP
755 W Lawrence Ave & Marine Dr & Clarendon Ave

Chicago - North

$4.49 BP
1607 W Fullerton Ave & Ashland Ave (Clybourn Ave)

Chicago - North

$4.47 Shell
4000 N Pulaski Rd & Irving Park Rd

Chicago - NW

4-11-2011

http://chicago.cbslocal.com/2011/04/11/gas-prices-climbing-toward-5-per-gallon/

Gas Prices Climbing Toward $5 Per Gallon


At one time, $5 per gallon gas seemed like a farfetched idea, but that is no longer the case.

Some experts say $5 per gallon gas is possible by Memorial Day

The sharply rising prices hearken back memories of the summer of 2008.


That year, oil prices were driven well above $100 per barrel, and in June of that year and gas prices were well over $4 a gallon.



The highest average record price was $4.34 per gallon, set July 2008.

NOW the troll uses chicagogasprices? And yet the average price in Chicago is is under $4.20.

Just a matter of time until the gas price collapses or it takes the economy down with it and then collapses.

If it gets much higher, absolutely. That's why talk of $5 by Memorial day is just so damn silly. chicken littles like dmcowen jump onto whatever silly prediction they can and then when it doesn't happen skulk away until the next crisis.

 

[desy]

Its called the undulating plateau of peak oil. Price goes up economy comes down, price goes up economy comes down. For many reasons, the gov't has very little to do with the price of oil.
ITS A GLOBALLY TRADED COMMODITY.
As far as Trump, yeah way to point out the obvious but trying to place blame at the Fed is disingenuous

 

[Imp]

Its called the undulating plateau of peak oil. Price goes up economy comes down, price goes up economy comes down. For many reasons, the gov't has very little to do with the price of oil.
ITS A GLOBALLY TRADED COMMODITY.
As far as Trump, yeah way to point out the obvious but trying to place blame at the Fed is disingenuous

A coworker was sending me articles about oil being inelastic, so I retorted with articles about the 2008/2009 oil crash. Wonder how far it will go this time before it goes to hell. Hopefully it doesn't take the market with it.

 

[desy]

Inelsastic means the demand doesn't change regardless of price and thats exactly what happened. It went up over 100% but demand dropped what 5-10%, pretty inelastic.

As far as the market went thats an interesting debate that the price of oil precipitated the mortgage crisis. Energy sucking away disposable income caused loan defaults and then property devaluation as surplus housing hits the market and on from there.
I think there is potential for the second round of this as some say the UI extension to two years is now coming to a close creating more people unable to make payments and on from there

 

[dmcowen674]

From the no shit sherlock dept:

4-12-2011

http://news.yahoo.com/s/ap/20110412...jY29yZGlvbl9idXNpbmVzcwRzbGsDb2lsZHJvcHN0b25l

Oil drops to near $108 ahead of key demand reports


Oil prices slumped to near $108 a barrel Tuesday in Asia, extending losses from the previous session ahead of key reports on the impact of rising fuel costs on global crude demand.

Some analysts predict the recent surge in crude prices will cut consumer spending, undermine economic growth and hurt fuel demand, which will eventually push oil back below $100.


"Rising petrol costs will dampen consumer demand and may trigger rate hikes by some central banks," Capital Economics said in a report. "Partly because of this, we expect oil prices to drop back toward $85 per barrel by year-end."


Crude has fallen about 5 percent since touching $113.46 during trading early Monday after soaring 34 percent from mid-February.
Much of the recent oil price run-up has been spurred by the fighting in Libya, which has taken almost all of the OPEC nation's 1.6 million barrels a day of crude production off the market indefinitely.

However, no other country's oil supplies have been disrupted by the political uprisings in the Arab world this year, and some observers say the threat to supplies in the region has been overblown.


"The risk premium being added to current oil prices by the market due to unrest in the Middle East and North Africa has been overstated," said Richard Soultanian of NUS Consulting.



"The gap between underlying fundamentals and energy market pricing is expanding to unsustainable levels."

Oil companies are poised to benefit from the price spike. Chevron Corp. said Monday that it expects to post a higher profit in the January-to-March period than it reported for the previous quarter when it announces results on April 29.

 

[Doppel]

Inelsastic means the demand doesn't change regardless of price and thats exactly what happened. It went up over 100% but demand dropped what 5-10%, pretty inelastic.

It is not 100% inelastic and that's all that matters. Total world supply is *barely* able to keep up with demand. When there is fear of or real drop in supply suddenly the mostly inelastic demand compels a huge ramp in price. But even a 5 or 10% drop in demand (I don't even think it was that much [10] in 2008) is enough to restore the buffer and then prices crash down again.

This is why $5 gas is not realistic yet. One day, but not yet. The demand isn't there nor will it be, say, this year. And it's not just drivers, since we all know oil permeates everything from plastics to delivery services they all are depressed by a ramp in oil prices and that ramping forces demand down enough to give some wiggle room.

I did read something compelling recently about how the majority or all of the recessions in the US in the past few decades have been preceded by high oil prices. There are other forces at play but it's pertinent.

 

[desy]

We are arguing the same point.
Its not a vertical line but close too it which makes it an inelastic commodity and we are reading the same articles
http://peakoil.com/

 

[airdata]

Gas went from $3.60 to $3.79 in just the time I was at work yesterday. Maybe it will dip all the way down to $3.77 by the time I have to fill up in a few days.

 

[Engineer]

Gas up to $3.89 today in Lexington. Looks like $4.00+ is just around the next week or two based on current run-ups.

 

[Imp]

http://finance.fortune.cnn.com/2011/04/12/goldman-plays-taps-for-crude-rally/

lolzers. Hope it goes crashing down. Nice big "F U" to all the speculators.

 

[Engineer]

http://finance.fortune.cnn.com/2011/04/12/goldman-plays-taps-for-crude-rally/

lolzers. Hope it goes crashing down. Nice big "F U" to all the speculators.

Was just coming here to post this...

http://news.yahoo.com/s/ap/20110412/ap_on_re_us/oil_prices

I tend to think that Goldman will now start shorting oil and drive it down even faster...make money on the way up...make money on the way down. Epic win, lol.

 

[blackangst1]

http://finance.fortune.cnn.com/2011/04/12/goldman-plays-taps-for-crude-rally/

lolzers. Hope it goes crashing down. Nice big "F U" to all the speculators.

How would that be a FU? Ever heard of a short?

 

[Doppel]

Posted on 4/2/2011:

lol. When it doesn't hit $5 by Memorial Day can you promise to stop trolling in gas threads?

No response from dmocowen?

 

[Matt1970]

4-11-2011

http://www.cnbc.com/id/42532489

Trump: Obama Is to Blame For High Oil Prices


Real estate developer Donald Trump blames President Obama for the rising price of oil, warning, "this country can never, ever recover" if oil prices continue to go up.

He contended that Obama is not a leader and is "in bed with these (OPEC) people.

Sounds kinda silly to blame the President for high oil prices doesn't it?

 

[dmcowen674]

Oil heading back up, big surprise
















Not

4-13-2011

http://finance.yahoo.com/news/Buy-C...NvdWw-?x=0&sec=topStories&pos=5&asset=&ccode=

Bank of America says oil could Hit $160


Bank of America Merrill Lynch is predicting a 30 percent chance that Brent crude could hit 160 dollars a barrel in 2011.

"Commodity prices should move broadly higher in 2011 on robust economic growth in emerging markets, despite relatively weaker growth in developed markets," said Sabine Schels, a commodity strategist at BoA Merrill Lynch in London in a research note.

 

[WhipperSnapper]

Let's just hope that the auto companies start focusing on producing high MPG plug-in hybrid cars that sell for $15,000 cause we're gonna need them.