What price will a gallon of gas cost next year at this time?

What price will a gallon of gas cost next year at this time?

My guess it will fall closer to $2.50 as the US economy slows down. I think this summer was the peak for gas prices and if it didn't hit $4 a gallon already, it most likely won't anytime in the near future.

It is hard to call, but I think $2.50 is not out of reason, or lower.

Oil companies and OPEC don't want $60 a barrel oil to go away. Unless a recession hits prices will stay above $2.50. Now that we have "gotten use to" $3 I'd say $4 a gallon wouldn't be out of the question. People will pay it, so why wouldn't they charge it. Demand isn't going down world wide.

Next recession will set thing strait though.

I'm not a 100% sure but I believe that all recessions since the 1960's were first caused by a spike in crude oil and energy prices. Often the energy infrastructure reaches its max capacity during the boom years of economic expansion and that tight supply and disruption causes prices to skyrocket. Those skyrocketing prices act like a tax increase that drains away the consumers disposable income which eventually causes the economy to tank since the retail consumer is (a huge) 2/3rds of the economy.

IMO the reason why crude oil prices have fallen nearly $5 from their high is that speculators are now thinking the chances of a hard landing and/or recession are becoming more likely. When the American consumer slows down buying stuff it will cause a huge glut in crude oil inventories and send prices in a nose dive.

It sucks to think that the only way we can stick it to OPEC is to have our own economy deflate. Not since the Civil War has America funded both sides of a military conflict like we do with oil/gas funding terrorists/despots and our taxes funding our military.

Since mine is at $2.49 right now, I don't think $2.50 is unreasonable.

I can deal with $2.50.

It's currently between $2.31 and $2.39 here in South Jersey.

It's around $2.98-$3.27 out here in Southern California.

Oil companies and OPEC don't want $60 a barrel oil to go away.

I could see where OPEC likes 60 bucks a barrel, but I dont see where oil companies that run refineries and have to purchase oil from other sources would want that, IMO commodity traders are the guys making out on this deal. Hell the Feds make more money on a gallon of gas than the oil companies do.

$2.29 in Columbia, MO.

Oil companies and OPEC don't want $60 a barrel oil to go away. Unless a recession hits prices will stay above $2.50. Now that we have "gotten use to" $3 I'd say $4 a gallon wouldn't be out of the question. People will pay it, so why wouldn't they charge it. Demand isn't going down world wide.

Next recession will set thing strait though.

you do relize that AAA predicted around 2 dollars a gallon by thanks giving in are area. and that was before the oil find in the gulf.

dropped to the 2.2x out in grand forks, ND which is nice. 2.50 not unreasonable

$2.20s here also

Much of the increase in gas was due to speculative trading to begin with. The shah of Iran farts, and traders on Wall Street bid gas up. There has been plenty of crude on the market now for 9 months. The reason it has been slow to come down is that there has been enough strife in the world to give the traders reason to bid it up (Isreal invading Lebonon, Iran, NK, etc). With gas prices, Oil companies have been exploring at a much higher pace with this new infusion of gas, which is greatly increasing the worlds proven reserves. Barring a war with Iran, gas should go back down near $2 soon.

$3.50+ this time next year.

I dont if anyone in other states had the same issue we did here in California in the summer with our power grid maxing out?

The last time California had rolling blackouts was at the peak of the last economic expansion in 2000/2001. There have been many new powerplants to come online in the last 6 years that were supposed to be able to handle our power needs until 2011, but it appears our states energy grid maxed out this July during a huge heat wave. The reason our energy grid reached capacity 5 years before it was supposed too, many large homes have been built out here over the last 6 years and during the heat wave everyone was using their air conditioning and it maxed out the system.

Incredible amount of new homes have been built in the last 6 years in significantly hotter desert-like areas where people bought much larger new homes significantly cheaper than OC, LA, SF, and SD. When the heat wave hit all those people were maxing the grid trying to keep their 3500+ sqft homes cool and were paying $600-$1000 a month for their electric bill.

These same people who live far away from the major cities in these desert-like areas are also the ones who unfortunately have a 1-2 hour one way commute back-and-forth work, and you could just imagine how much they were spending a month when gas hit $3.50 a gallon out here fueling their Tahoe or Suburban which they bought with 0% interest back in 2002 .

$2.29 in Columbia, MO.
I filled up at $2.25 the other day at Hwy K&N in O'Fallon, MO at Country Club.

It’s just a matter of time before OPEC annouces a production cut to try to prop up prices.....

http://money.cnn.com/2006/09/10/news/international/opec.reut/index.htm?postversion=2006091015

OPEC: OK with falling prices, for now

Cartel that pumps a third of world oil is watching prices carefully ahead of key meeting.

September 10 2006: 3:20 PM EDT

VIENNA, Austria (Reuters) -- OPEC ministers said Sunday they were unlikely to tamper yet with an output policy that is steering oil prices lower, easing pressure on consumer economies but still bringing in billions of dollars for producers.

But forecasts that demand for OPEC oil will decline in 2007 are beginning to
worry some in the group that pumps a third of the world's oil. They fear the $12 drop in the oil price from its July 14 record could turn into an extended slump.

OPEC meets here on Monday. It will consider a recommendation from its advisory committee that it keep its 28 million barrel-a-day production ceiling, for now, but leave the door open to another meeting before December if prices drop sharply.

"We have been oversupplying since about mid 2003, " said OPEC President Edmund Daukoru, also Nigeria's energy minister. "We have really been pumping without bothering what the call on OPEC is, but such history cannot go on forever," he added. "It is time to say whether we need a good fresh hard look."

For over a year, OPEC has been pumping at or near its fastest rate for 25 years to guard against price shocks. The Saudi-driven policy has succeeded and prices have sunk from a record $78.40 a barrel on July 14 to above $66 on Friday.

But OPEC see no need to cut production yet - oil is still up $5 this year and three times the price at the start of 2002.

Ministers are mindful that the Atlantic hurricane season still has several weeks to run and U.S. Gulf of Mexico oil output has yet to recover fully from last year's storms.

Iran's dispute with the United Nations Security Council over its uranium enrichment program also has the potential to drive prices higher. The United States favors sanctions against the world's fourth biggest oil exporter.

A quarter of Nigeria's oil output lies idle because of militant attacks and Iraq's exports are vulnerable to sabotage.

Cut ahead?

Surging oil prices boosted the value of OPEC's crude oil exports by 45 percent to a record $513 billion last year.

But there are signs that economic activity is easing in top consumer the United States and the second biggest consumer China has raised lending rates to try to cool its economy.

OPEC's economists are forecasting demand for OPEC oil will drop 800,000 barrels a day to an average 28.3 million in 2007 as new non-OPEC production comes onstream.

"The geopolitical situation has cooled off somewhat and I believe it is the right time to relate prices to other fundamentals," Daukoru told reporters. "We don't know when the bubble might break, we need to take a more realistic position," he said.

Qatari Oil Minister Abdullah al-Attiyah said OPEC may well cut output in the months ahead.

Carl Calabro of PFC Energy in Washington said the real test for the organization may come early next year. "The concern is what happens to the price in spring when demand falls. World inventories are quite adequate at the present time," he said.

FWIW, after months of seeing 87 octane unleaded going for $3.20+ here in the Bay Area, I just saw it at two locations near me for only $2.85 per gallon this weekend.

I think prices will stablize and begin to creep back down to normal.

I could see where OPEC likes 60 bucks a barrel, but I dont see where oil companies that run refineries and have to purchase oil from other sources would want that, IMO commodity traders are the guys making out on this deal. Hell the Feds make more money on a gallon of gas than the oil companies do.

most oil companies own wells.

you do relize that AAA predicted around 2 dollars a gallon by thanks giving in are area. and that was before the oil find in the gulf.

back in 2000 when gas was 99¢ would anyone have predicted $3.50 a gallon in the US? Since is an election year I think it is a safe bet that gas prices would go down. I don't think the national avg. will hit $2, but I could see the cheapest states getting $2.09 gas. I have my fingers crossed for $2.00

Next year? If I knew that I would play the lottery. :D But I'm betting gas prices by Thanksgiving of this year will be around $2.10 or lower.

In my area prices have fallen from a high of $3.20 to $2.23 during this price drop. Let's hope they keep going!

Every time I get gas, say I pay $27 for 10 gal. I always say I wish it was the other way around...27 gal for $10. That would make my day!!! Thats where I think gas prices sould be. More than a buck a gallon is too much as far as I'm concerned.

$2.06 in OKC yesterday...

$2.06 in OKC yesterday...

Damn..gas is still $2.79 in my town. Cheapest I've seen in my area is $2.66 last weekend.