Gas prices up, who's fault is it??

[Working Man]

Some say it is because of Israelis war with the Palestinians. Others say it is because of the speculators on Wall Street.

If nobody really knows, then oil shouldn't be a traded commodity. For the fair market to work, I would think that transparency and reason need to be mandatory factors. With no reason, just speculation, their is no fairness.

Americans have still not learned their lesson from last summer as I see many of the gas guzzlers on the road again.

One thing for sure, the new Honda Accords with the auto trans and four banger SUCK gas like a Chevy Suburban (honestly, the Accord could be worse) around town. Honda is lying when it comes to the economy of this model.

 

[Zoom-boing]

Americans have still not learned their lesson from last summer as I see many of the gas guzzlers on the road again.

So we're suppose to just run out and buy a new car cause our 'gas guzzlers' guzzle gas? Can you loan me $20,000? I'll pay it back just as soon as Wallstreet pays back Uncle. Honest.

 

[xsited1]

Some say it is because of Israelis war with the Palestinians. Others say it is because of the speculators on Wall Street.

...

Here's something to look forward to:

Goldman Sees ‘Swift, Violent’ Oil Rally Later in Year

Bloomberg.com: Latin America

 

[Andrew2382]

If only this country had ample oil to support ourselves for the next 200 years....whatever shall we do

 

[Paulie]

Gas is only up slightly from its low a while back. It has to do with the holiday driving season demand, and the OPEC production cuts. It will most likely come up a bit higher when the summer season begins, but we won't be seeing it as high as it was last year, unless the bottom drops out from the Dollar.

If by the end of the year, oil is up a lot higher, it will probably be because of speculation. I know I'm buying right now myself. $30 oil is a huge buy opportunity. We will eventually see prices over $100, when inflation starts to rise. We have a while to go before that though. When the banks start loosening up and lending, oil will start coming back up.

 

[auditor0007]

If only this country had ample oil to support ourselves for the next 200 years....whatever shall we do

We may well have that oil. Actually, we do have that oil. Now it is just a matter of figuring out how to extract it from the rock that holds it. The Green River Basin holds approximatley 1.5 trillion barrels of oil in the form of oil shale. Currently, Shell and four other companies are working on new forms of extraction.

While these new methods are complex, there is a very good chance that at least one will prove successful. Right now the money is on Shell's method. Unfortunatlely, even if any of these new processes is successful, it will be twenty years before we see full scale production from this source, and that is if we can get past the environmentalists who will certainly try to limit the amount of production.

No matter what, even if we do see full scale production, we need to continue to concentrate on alternate sources, because eventually, the oil is going to run out.

 

[RetiredGySgt]

A barrel of oil has been dropping again in price, yet no changes at the gas pump. As I recall oil is down to 34 dollars a barrel again.

 

[sitarro]

It's Obama's fault.

 

[Paulie]

A barrel of oil has been dropping again in price, yet no changes at the gas pump. As I recall oil is down to 34 dollars a barrel again.

There's been changes where I live. The pump price drops slower in relation to oil drops, whereas when oil rises, the pump price moves almost in lockstep.

Oil is at $40 right now, and your pump price is probably reflecting the futures price of oil which is not $34. Pump prices will come down again, once the holiday demand and production cuts are priced out of the futures. But be prepared for a rise again once the summer demand comes into play. $2.00 gasoline at the most for this year's high, which will decline in the fall.

Once the banks release their reserves though, all bets are off.

 

[MalibuMan]

Come on people! It's Bush's fault!

 

[michiganFats]

Don't forget the price difference between the summer formula fuel and the winter formula fuel. I'm not sure about rural areas, but many urban areas are required by the EPA to use the summer formula during warmer months. In my area, that results in about a $1/gallon price increase every spring that has nothing to do with market forces.

 

[Paulie]

Don't forget the price difference between the summer formula fuel and the winter formula fuel. I'm not sure about rural areas, but many urban areas are required by the EPA to use the summer formula during warmer months. In my area, that results in about a $1/gallon price increase every spring that has nothing to do with market forces.

I'd be interested in seeing some data that justifies raising the price of gas a whole $1/gal just because of a different seasonal blend.

Even octanes are only seperated by about 10-15 cents each.

Sounds like you're getting ripped off. The higher price in the summer is typically because demand increases, not because of blend differences.

 

[michiganFats]

Paulie, I am getting ripped off. I admit that I can't find one solid figure to quote regarding the EPA mandate. The only reason I have the $1/gallon figure is because I wrote to the Secretary of State in my state, and that's the figure I got back from her office. According to the letter her office sent me, I am paying 38 cents per gallon in county road tax, I paid 17 cents per gallon for my car in federal tax, my commercial vehicle road tax was triple that, and the state tax at the time was 28 cents per gallon. She also stated that the EPA regulations resulted in an average increase statewide in urban area of $1 per gallon when the summer formula was in distribution. And every year when the price does in fact go up $1/gallon over a 7 day period, the news runs stories about the greedy oil companies.

 

[elvis]

The price is market driven, in my opinion. Having said that, if the saudis cut production, that affects the market because supply is cut.

 

[Shadow]

It's Obama's fault.

Exactly.."He won"...just ask him and he will tell ya so..

 

[editec]

Has production been cut back?

The price of oil (it was down to $34 just a week or so ago) WAS TOO LOW...even for this feeble economy.

I expect, assuming the economy starts recovering, that the price of oil will rise to take advantage of the increasing demand.

Underpinning all the shinanigans (which I recognize do exist) there STILL IS the validity that the the laws of supply/demand impose on pricing.

 

[Skeptik]

If only this country had ample oil to support ourselves for the next 200 years....whatever shall we do

We may well have that oil. Actually, we do have that oil. Now it is just a matter of figuring out how to extract it from the rock that holds it. The Green River Basin holds approximatley 1.5 trillion barrels of oil in the form of oil shale. Currently, Shell and four other companies are working on new forms of extraction.

While these new methods are complex, there is a very good chance that at least one will prove successful. Right now the money is on Shell's method. Unfortunatlely, even if any of these new processes is successful, it will be twenty years before we see full scale production from this source, and that is if we can get past the environmentalists who will certainly try to limit the amount of production.

No matter what, even if we do see full scale production, we need to continue to concentrate on alternate sources, because eventually, the oil is going to run out.

Yes, we have oil that can be extracted, but not economically at $40 a barrel. If oil goes back up to $150, then extraction could proceed, but who is going to be willing to invest in it without some assurance that the price isn't going back down?

Alternative energy is the same problem. It won't be economical if oil remains cheap. It is only when the price goes through the roof that anyone is serious about either alternative energy or more oil exploitation.

It would be much better to be pro active and start both alternative energy and exploitation of domestic reserves before the next crisis hits, but, of course, we won't

 

[cunclusion]

The price is because of the future effect of the Saudi and OPEC supply cut. When these are taken into full account with the way the market currently is as well as the value of the dollar in the future will be. Inflation is inevitable the gas price is taking this into account. But I wonder about some states that cut or removed their gas taxes during the peak price. Some may have reimplemented the taxes back on gas to shore up falling tax revenue.

 

[editec]

I'm against cutting taxes on fuel.

It pains me to pay it, of course, but I know that it is going to rebuilding the roads and bridges that I am using when I drive, so it is, in my world view, a reasonable user tax.

 

[cunclusion]

Some states did cut or repeal the tax when gas prices got real high. But now that the prices are going back down some are reinstituting the tax. It makes sense even in a economic downturn.