Gas to soar to $7-$10 per gallon
Posted April 28th, 2008 by Susan
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Get ready for another economic shock of major proportions — a virtual doubling of prices at the gas pump to as much as $10 a gallon.
That's the message from a couple of analytical energy industry trackers, both of whom, based on the surging oil prices, see considerably more pain at the pump than most drivers realize.
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.
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.
While $7-$10 a gallon would be ground-breaking in America, these prices would not be trendsetting internationally. For example, European drivers are already shelling out $9 a gallon (which includes a $2-a-gallon tax).
Canadians are also being hit with rising gas prices. They are paying the American-dollar equivalent of $4.92 a gallon, and they're being told to brace themselves for prices above $5.65 a gallon this summer.
While Mr. Gaines thinks there could be a temporary decline in the oil price, he's convinced an overall uptrend is unstoppable. In fact, he thinks his $200 forecast could be conservative, and that perhaps $250 could be reached. His reasoning: a combination of shrinking supply and increasing demand, especially from China, India, and America.
Mr. Brodrick's $200 oil forecast is largely predicated on a combination of pretty flat supply and rip-roaring demand. Other key catalysts include surging demand in China and India, where auto sales are booming, and major supply disruptions in Nigeria and also in Mexico, our second-largest source of oil imports, where oil production has fallen off a cliff.
I never shold have sold that moped I had!
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Now all the sheep are coming to Dr. Paul
Now that they feel the heat in the supermarket, at the gas station, wherever they use their dollars they start listening to Dr. Paul, finally it was time to wake up and stop being a Sheep!
I think they may prefer
the term ~Awakened~.. ;)
Oh my, this is going to age
Oh my, this is going to age me but, way back when...lol, I had a little datsun pick up (no they weren't called nissan then.) Today it hit me that I could fill the 10 gallon tank of that little pick up for less than I am now paying for 1 gallon of gas. And I got a free dish, glass, or cup when I filled up. So I am job hunting for something closer to home instead of spending $7 a day on gas to commute to work.
Ah, yes, the days of,
gas station prizes. Late 50's early 60's.....somewhere in there. There was one gas station that had so many prizes to choose from it resembled one of those tents on the midway of a traveling carnival. But that was even before the age of Datsuns!
I remember the 1970's gas lines
and going with my father (parents had those give away bright metal cups collected also-probably worth something on ebay nowdays)
I remember Noah's Ark.
Mobile? 76?
They had a new pair of animals every week.
Anyway, I remember the odd/even days and sitting in the car forever to get gas and the people who would run out but couldn't buy any because their license plate was even on an odd day.
___________
Lisa C.
http://www.women4ronpaul....
His premise
"Mr. Brodrick's $200 oil forecast is largely predicated on a combination of pretty flat supply and rip-roaring demand."
So IF supplies remain flat AND demand keeps rip roaring, prices will hit $7 to $10. Well that's huge IF.
His whole argument collapses if that premise is wrong and it likely is wrong.
This is because as prices increase, the increased opportunity for profit increases. This causes supply to increase. The OPEC cartel will have to open up the spigot and relieve the artificial shortage in order to compete with other producers and the potential for others producers. For example, if OPEC sees the American public starting to seriously demand allowing drilling in the environmental areas, they'll increase supply in order to quiet down the American public and its demands. Thirdly, as the price increases, demand decreases as people cut back on fuel consumption only using it for necessities. That puts downward pressure on prices. Thirdly, as prices increase subtitute power sources start coming into the market to take advantage of the profit opportunities. This competition puts downward pressure on prices.
So he's only looking at upside pressure on the price while ignore downside pressure. That's not rational economic thinking.
Just a bit more than a year
Just a bit more than a year ago oil was at $60 per barrel and gas was maybe $2.75 per gallon. The price of oil has doubled, but gas is only $3.60 or so now. Shouldn't gas already be at $5+ considering the increased cost of oil over the past year?
Why hasn't gas kept pace with oil? I believe that sooner or later gas will catch up...
Got a rational one for you then...
His arguement is smoke and mirrors anyways. OPEC has no problem with oil at $200 US a barrel... they just want to decouple from the damn dollar system without us terrorizing them. (See Iraq as an example). After all, there are certainly more stable world currencies now.. lol.
As for 10$ gas in a few years, that may be possible... not because of supply and demand but the decoupling of the dollar from oil. Meaning how much the dollar can purchase in the global economy if nobody needs our money anymore for petrol... there lies our real problem.
Want to know where we're heading? Easy.
http://quotes.ino.com/cha...
Here is our dollar vs everyone else's fiat cash.. do you see a trend?
50-250 CC scooters on the West Coast
I've visited a couple local motorcycle shops near San Jose, CA. They used to have a really good selection of scooters and motorcycles with engines from 50cc to 250cc cause people were embarrased to be seen on such girly rides. Now they say there are waiting lists and weeks wait for them. Especially hot are the:
Motorcycles:
Honda Night Hawk - 250cc
Kawasaki Ninja - 250cc
Scooters:
Yamaha Zuma - 50cc
Honda Ruckus - 50cc
Kymco Agility - 125cc
Appearently scoots with engines much larger than 125 are more expensive than 250cc or comparable sized motos, so people normally go for the Night Hawk or Ninja.
Who needs a moped..for a price of one, I'd rather get a Ninja
250R (MSRP $3,499) and it's SUPER on mpgs'. Been calling around quotes for a week or so, but the thing is friggin' hard to find due to very high demand.
Buy used
Their is a huge used market for those bikes, you should be able to get one with only a few hundred miles for under $3k.
I just checked out the moped situation this afternoon
The one I used to have was $500 new 45mph
It's now $1800......inflation!!!!!!!!! At $10 I predict they will go like hotcakes!
Don't you mean due to rising
Don't you mean due to rising demand? Inflation is rising of prices due to more currency being made.
Time to invest in oil futures?
We're
thinking about investing in a golf cart...We have wide bike paths here that allow for them to travel in these lanes...
But a moped is a good idea, too.
I watched
who killed the electric car this weekend. Makes me so pissed.
They've got one that runs on ..wait for it...
air.
Everything is going
according to their plan it seems, the bastards. Peace