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

[Londo_Jowo]

Actually NO

I drive a Honda Shadow Motorcycle that gets 57 miles per gallon.

Your buddy oil thugs only get a gallon a week out of me.

So in other words you just love to complain and that's your sole reason to post in this thread.

 

[heymrdj]

Sadly gas is back up to 3.85/gal here in Fort Wayne. Sucks. The lower prices saved me 16$ last week.

 

[OCGuy]

It was nice filling up a tank of Premium today for only $4.19.

 

[Londo_Jowo]

The de-gouging still continues. Just in the past 2 days gas prices have dropped $0.18/gal in the area where I live. Drive for below $3.00/gal is on!!!!!

http://www.houstongasprices.com/Chevron_Gas_Stations/Sugar_Land/107517/index.aspx

 

[Ninjahedge]

If oil prices really have not been plummeting... what has been dropping the price?

Just start looking for all the things they say raised it in the first place so that we remember the BS when they do it again in the near future....

(This may just be an attempt to kill the Hybrid, although that will be difficult now that it has taken a more mainstream role...)

 

[Londo_Jowo]

If oil prices really have not been plummeting...

Obviously you haven't been paying attention as oil has been dropping.

http://money.cnn.com/data/commodities/

 

[dmcowen674]

If oil prices really have not been plummeting... what has been dropping the price?

Just start looking for all the things they say raised it in the first place so that we remember the BS when they do it again in the near future....

(This may just be an attempt to kill the Hybrid, although that will be difficult now that it has taken a more mainstream role...)

6-20-2012

Here is a trader that says oil will go down to $16

http://finance.yahoo.com/blogs/brea...rude-oil-crash-coming-says-170127530.html?l=1


Look Out Below! Major Crude Oil Crash Is Coming Says Analyst




Crude oil has fallen 20% in less than 2 months. The drop has been sufficient to prompt most bears to declare victory and cover their shorts or even ponder getting long near last year's lows in the mid-$70s. But Jeff Kennedy, chief commodity analyst at Elliott Wave International thinks those buyers are early by about $40.

He bases his outlook on pattern recognition and psychology. His work suggests crude will plunge to the December 2008 lows of $38 a barrel then pause prior to falling another 50%. All in, Kennedy is forecasting an additional 80% drop in crude to $16.70 a barrel; a level not seen since November 0f 2001.

One of the contributing factors for the drop in crude is strength in the dollar, particularly against the beleaguered Euro. The thesis for getting long dollars and shorting euros is simple: the Eurozone is perpetually on the brink of collapsing, taking its fake currency with it.

 

[dmcowen674]

6-20-2012

http://finance.yahoo.com/news/oil-p...RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3

Oil prices fall as US supplies grow


The Energy Information Administration said oil supplies grew by 2.9 million barrels last week. That surprised analysts who had expected a decline of 600,000 barrels.

Oil supplies have risen this year to the highest level since 1990, thanks to a boom in North American production.

"The U.S. is flush with oil right now," independent analyst and trader Stephen Schork said. "And if you factor in the economic mess in Europe, slower economic growth in China, and probably overproduction from the Saudis in preparation for the Iranian oil embargo, the world has a comfortable supply" of oil.

Benchmark U.S. crude dropped $2.23, or 2.7 percent, to end the day at $81.80 per barrel in New York. That's the lowest level since October. Brent crude, which is used to price much of the oil imported into the U.S., lost $3.07 to finish at $92.69 per barrel in London. That's Brent's lowest finish since December 2010.


Wednesday's drop was among the biggest in a nearly two-month swoon that has slashed 23 percent off the price of oil.
===================================================
I thought Obama's oil policies kept U.S. Oil Production in the toilet?

Clearly someone has been lying.

 

[hal2kilo]

Finally, droppin like a rock out here in the greater Puger Sound area. Was 4.00 a week an a half ago at Costco. Now, $3.67. It's about freak'n time!

 

[Shadow Conception]

How long do you guys think these prices will last?

 

[OCGuy]

I'm lovin' it. Hopefully some speculators lose their ass. I'm feeling better about owning 2 5.4L V8s, one of them with 550hp.

 

[desy]

16$ oil what an idiot

"As a technician Kennedy pays little heed to the standard crude narratives involving Middle East tensions, supply disruptions, and refining. To him the charts tell the story and "the story right now in the crude oil price chart argues for a further decline well into 2013."

K lets ignore the real world

"Energy analysts at Bernstein say the marginal cost of oil production, already $92 per barrel, is nearing $100 per barrel.
The marginal cost of the 50 largest oil and gas producers globally increased to US$92/bbl in 2011, an increase of 11% y-o-y and in-line with historical average CAGR growth. Assuming another double digit increase this year, marginal costs for the 50 largest oil and gas producers could reach close to US$100/bbl.
Their analysis does not include OPEC or former Soviet Union producers. But this does not matter. Since the former SU and OPEC aren't going to grow their production fast enough to meet rising world demand the marginal cost of the other producers will determine at what price rising demand and market price will meet.
This rapidly rising marginal cost of production is what Peak Oil looks like. Peak Oil is going to happen because marginal cost will go too high for the world economy to afford to pay what it takes to boost production. At that point oil production will start falling. I originally expected peak production to happen at a much higher price for oil. But the European debt crisis, the deceleration of Chinese economic growth, and the continued weak US economic recovery make me think peak global oil production will happen at a price not much higher than current oil prices.

The costs of tight shale oil is very high and high oil prices are needed to keep it flowing.

"The United States is producing an awful amount of oil from tight shale and tight sands reservoirs... If oil prices send a signal and drop below the $90-$80 level it is going to be uneconomic to drill those well. So drilling will stop immediately," said Michel Hulme, fund manager at Lombard Odier.
How high an oil price is needed to start world oil demand headed on a downward slope? Higher or lower than the current price range near $90-100?

 

[Svnla]

Down to $3.03/gal of regular unleaded. Below $3/gal soon? Stay tuned.

 

[Pr0d1gy]

Back to $3.19ish here after floating around $4 for the last year or so. I think we can let this nonsense drop. Yeah, maybe it isn't back where it was before Bush took office but at least it is heading that way again finally.

 

[Doppel]

16$ oil what an idiot

"As a technician Kennedy pays little heed to the standard crude narratives involving Middle East tensions, supply disruptions, and refining. To him the charts tell the story and "the story right now in the crude oil price chart argues for a further decline well into 2013."

K lets ignore the real world

"Energy analysts at Bernstein say the marginal cost of oil production, already $92 per barrel, is nearing $100 per barrel.
The marginal cost of the 50 largest oil and gas producers globally increased to US$92/bbl in 2011, an increase of 11% y-o-y and in-line with historical average CAGR growth. Assuming another double digit increase this year, marginal costs for the 50 largest oil and gas producers could reach close to US$100/bbl.
Their analysis does not include OPEC or former Soviet Union producers. But this does not matter. Since the former SU and OPEC aren't going to grow their production fast enough to meet rising world demand the marginal cost of the other producers will determine at what price rising demand and market price will meet.
This rapidly rising marginal cost of production is what Peak Oil looks like. Peak Oil is going to happen because marginal cost will go too high for the world economy to afford to pay what it takes to boost production. At that point oil production will start falling. I originally expected peak production to happen at a much higher price for oil. But the European debt crisis, the deceleration of Chinese economic growth, and the continued weak US economic recovery make me think peak global oil production will happen at a price not much higher than current oil prices.

The costs of tight shale oil is very high and high oil prices are needed to keep it flowing.

"The United States is producing an awful amount of oil from tight shale and tight sands reservoirs... If oil prices send a signal and drop below the $90-$80 level it is going to be uneconomic to drill those well. So drilling will stop immediately," said Michel Hulme, fund manager at Lombard Odier.
How high an oil price is needed to start world oil demand headed on a downward slope? Higher or lower than the current price range near $90-100?

Yeah of course it's retarded, oil will never be $16/barrel ever again. If it ever gets under $50 I'll very confidently buy a lot of stocks like the ticker OIL, and if it were under $40 I'd start getting really stupid about how much I bought.

 

[The-Noid]

Extra extra, Evil speculators still in the Hamptons, wti front month 79 handle. Read all about it.

 

[hal2kilo]

Finally, droppin like a rock out here in the greater Puger Sound area. Was 4.00 a week an a half ago at Costco. Now, $3.67. It's about freak'n time!

Now $3.54 overnight!

 

[dmcowen674]

How long do you guys think these prices will last?

Obviously until the day after the election.

 

[dmcowen674]

Down to $3.03/gal of regular unleaded. Below $3/gal soon? Stay tuned.

Friend of mine just posted a pic of gas $2.99 in New Jersey.

It dropped to lowest I've seen here in Chicago area in a long time at $3.69.

 

[dmcowen674]

6-21-2012

http://finance.yahoo.com/q;_ylt=Amy...NhdANob21lBHB0A3NlY3Rpb25z;_ylv=3?s=clq12.nym

Crude Oil Aug 12 (CLQ12.NYM)

-NY Mercantile

78.52

2.93(3.60%) 3:47PM EDT



Went as low as 78.05 before ticking back up

 

[heymrdj]

Still 3.48/gal here in Northern Fort Wayne.

 

[werepossum]

Yeah of course it's retarded, oil will never be $16/barrel ever again. If it ever gets under $50 I'll very confidently buy a lot of stocks like the ticker OIL, and if it were under $40 I'd start getting really stupid about how much I bought.

Conventional wisdom was that oil was unsustainable above $30/barrel. Of course, $30 obviously isn't what it used to be, but oil producers have discovered that conventional wisdom was totally wrong. Oil demand isn't inelastic, but it's a damned sight more inelastic than elastic. Demand doesn't drop nearly enough to make high oil prices less profitable, and production doesn't ramp up nearly enough to make high oil prices less sustainable. On top of that we're dealing with a product with exhaustible supply and very high costs to open up new supplies. Put all that together and I'll be massively surprised if oil is ever again much less than $80/barrel without enough production cuts to very quickly raise the prices.

There's a bright side though. High oil prices do reduce demand both directly through decreased driving and indirectly through increased incentive to make more energy-efficient vehicles and buildings and to develop other forms of energy. Thus we reduce CO2 production and hopefully will find an energy source practical enough to replace fossil fuels, since in the industrial age prosperity depends on cheap energy. Whether I'm paying $10 to fill up my Ninja or $50 to fill up my Tracker or $70 to fill up my wife's pickup, it's less painful to think about the bright side rather than the hole in my wallet.

 

[Doppel]

Conventional wisdom was that oil was unsustainable above $30/barrel. Of course, $30 obviously isn't what it used to be, but oil producers have discovered that conventional wisdom was totally wrong. Oil demand isn't inelastic, but it's a damned sight more inelastic than elastic. Demand doesn't drop nearly enough to make high oil prices less profitable, and production doesn't ramp up nearly enough to make high oil prices less sustainable. On top of that we're dealing with a product with exhaustible supply and very high costs to open up new supplies. Put all that together and I'll be massively surprised if oil is ever again much less than $80/barrel without enough production cuts to very quickly raise the prices.

After the crash of 2008 I'd say that almost anything is possible, so it wouldn't surprise me to see it again at $50, maybe even lower, but not by much and most importantly, definitely not for long. The world has proven now it's able to survive with the kinds of oil prices we have now. They suck, they hurt the economy, but the demand remains there, so $80 sure doesn't seem unreasonable.

 

[amdhunter]

Obviously until the day after the election.

Yep. Prices were low during the last election too.

 

[Doppel]

I cannot find now but did once a chart going much further back. I didn't see much in the way of real correlations, though.