Gas might be as high as $5.00 by the end of summer if oil stays at $125
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Joined: Jan 2000
Posts: 10,285
From: Albany, NY
Gas might be as high as $5.00 by the end of summer if oil stays at $125
http://www.zealllc.com/2008/gasoline.htm , Kind of a long more technical read, but worth it.
Basically they are saying that people have cut back on driving and there is a glut of gasoline in the supply lines. Refineries are making zero profit on making gasoline (note that is not the same as oil companies and oil). Thus they will cut back production until the profit margins go back up to the mean. If Oil stays at $125 until the end of summer there is a good chance we will see gas get close to $4.50-$5.00.
Basically they are saying that people have cut back on driving and there is a glut of gasoline in the supply lines. Refineries are making zero profit on making gasoline (note that is not the same as oil companies and oil). Thus they will cut back production until the profit margins go back up to the mean. If Oil stays at $125 until the end of summer there is a good chance we will see gas get close to $4.50-$5.00.
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Joined: Mar 2007
Posts: 1,897
From: Greenville, SC
Sadly, Americans worried about high gasoline prices today ain’t seen nothin’ yet. $4+ is all but certain and $5+ later this year is a growing possibility. It’s going to get ugly. But although we’re at the mercy of global oil production and consumption trends hopelessly out of our control, as traders we may as well ride these trends. As good stewards of our hard-earned capital, we need to make the best of prevailing conditions.
I hope the bubble busts and they all lose an assload of money 
Last edited by Silverado C-10; May 14, 2008 at 02:32 PM.
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Joined: Dec 2002
Posts: 681
But, cutting back on gasoline production means that the demand for oil will go down, and the price of oil will go down, and then the price of gasoline will remain stable.
The main thing that I took from that article is that the price of oil needs to go down if we want to reduce our fuel prices.
To reduce the price of oil, we need to increase the value of the dollar and reduce demand.
The main thing that I took from that article is that the price of oil needs to go down if we want to reduce our fuel prices.
To reduce the price of oil, we need to increase the value of the dollar and reduce demand.
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Joined: Sep 2004
Posts: 1,448
From: Irving, TX
Demand for oil may go down in the states, but it is rising elsewhere. Global demand is high. Not likely to see the price drop because of the US cutting back.
The value of the dollar climbing would be a nice help.
The value of the dollar climbing would be a nice help.
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Joined: Sep 2002
Posts: 9,705
From: Oakland, California
This morning a tug boat crashed into the warf at the Tesoro Golden Eagle refinery in Martinez near here, rupturing a fuel pipeline and dumping 1500 gallons of gas into Suisun Bay. Want to bet gas prices locally jump over night? 
Ironically their stock is up 50¢.
Ironically their stock is up 50¢.
Last edited by jg95z28; May 14, 2008 at 03:08 PM.
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Joined: May 2001
Posts: 1,018
Gas prices are high, and only going UP.
The economy is in the crapper.
We're still at war.
It's not a doomsday scenario, but we really can't do anything without feeling the pinch anymore. It's ridiculous and I'm hoping our new elected leader will take swift action.
At $5/gallon, we will see more of the gas/food tradeoff scenario. I think that's what scares me most.
The economy is in the crapper.
We're still at war.
It's not a doomsday scenario, but we really can't do anything without feeling the pinch anymore. It's ridiculous and I'm hoping our new elected leader will take swift action.
At $5/gallon, we will see more of the gas/food tradeoff scenario. I think that's what scares me most.
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Joined: Aug 2003
Posts: 915
From: Tucson, AZ
People are going to take fewer trips, eat out less and buy fewer "luxury" items such as starbucks coffee in order to make up the difference. Basically the economy is going to suffere in order for us to keep sending money to foreign nations for oil so we can make it to work, so we can buy more gas to make it to work...and so on. This is why in my mind...even if i had to pay an equivalent $/mile for an alternative fuel source that was made 100% int he US I'd be fine with it.
People keep boohooing electric "well what it electric goes up?". Well, what if it does? Even if it goes up enough that it costs nearly as much to drive an electric vehicle wouldnt' you rather all yoru money go towards employing people in the US?
People keep boohooing electric "well what it electric goes up?". Well, what if it does? Even if it goes up enough that it costs nearly as much to drive an electric vehicle wouldnt' you rather all yoru money go towards employing people in the US?
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Joined: May 2006
Posts: 1,855
From: Ohio
Im not surprised, speaking of that I forgot we was even at war, guess everyone but the family's quit careing, dont even see it on the news much. I dont see how gas prices will ever go back down to even $2.00 a gallon.
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Joined: Aug 2003
Posts: 915
From: Tucson, AZ
I was trying to find a thread from not long ago...Z28X and a select few (me included) were saying gas would easily hit $4/gallon this summer. This was some 5-6 months ago. Back then gas was about $2.50-$2.75/gallon...everyone thought we were being alarmists and there was no way gas could jump that much 
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Joined: May 2001
Posts: 1,018
Anyone wanna dig up some old gas threads from 2004?
I remember I was pissed because I had bought a 1997 S10 Blazer that got 17mpg. The price of gas rose to $2.14/gallon. $3/gallon gas was a BIG fear--I'd have to stop driving the thing if it got that high.
I remember I was pissed because I had bought a 1997 S10 Blazer that got 17mpg. The price of gas rose to $2.14/gallon. $3/gallon gas was a BIG fear--I'd have to stop driving the thing if it got that high.
