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

[dmcowen674]

Why would they need or want to pump more oil when storage tanks and tankers are already overflowing and have too much oil?

2-23-2011

http://www.nytimes.com/2011/02/23/business/global/23oil.html

Saudis, Trying to Calm Markets, Say OPEC Ready to Pump More Oil

The political turmoil sweeping the Arab world drove oil prices sharply higher and stocks much lower on Tuesday despite efforts by Saudi Arabia to calm turbulent markets.

The unrest that has spread from Tunisia to Libya pushed oil prices to a two-year high and has spurred an increase in gasoline prices. The specter of rising energy costs and accelerating inflation in turn unsettled investors.

Oil is now at a price not seen since the recession began, and it is more than $20 above goals set in recent months by Saudi officials

There are still plentiful supplies of oil and gasoline in the United States and in much of the world

“OPEC is ready to meet any shortage in supply when it happens,” the Saudi oil minister, Ali al-Naimi, said at a news conference after a meeting of ministers of oil producing and consuming nations in Riyadh, Saudi Arabia. “There is concern and fear, but there is no shortage.”

 

[Doppel]

That's a good point. I guess I hadn't thought of it that way. Thanks for pointing that out. So at $5/gallon a savings of 160 gallons would work out to $800/year. That's still significant but perhaps doesn't provide a proper return on investment for the added expense of a hybrid.

I'd still like to be able to get one for under $15,000 though. With the way our nation's economy and job markets are going, people are going to need that extra $800 per year.

There are some nice hybrids. Prius gets amazing mileage and costs under $23k new. The insight is cheaper but inferior. The Prius C is coming out soon, but there are other ones, too. As pointed out, though, a compact car like a Versa, Fit can be had for very, very little money and is functional. Yeah, it's small, but total cost of ownership is super cheap, even at $5 gallon gas. But most people don't to drive something so small.

 

[WhipperSnapper]

I did a little quick research last night and read that Honda is indeed developing a hybrid version of the Fit. As of now they're not planning to sell it in the U.S., but it's probably just a matter of time.

 

[Engineer]

Oil went past $100 (and Brent topped $111 for those that like to quote in that metric) today. Can only hope the speculators decide that it's too risky to keep going with the well supplied market and start dumping soon. Otherwise, it's going to be a painful economic situation (well, except for a certain individual).

 

[dmcowen674]

Oil went past $100 (and Brent topped $111 for those that like to quote in that metric) today. Can only hope the speculators decide that it's too risky to keep going with the well supplied market and start dumping soon. Otherwise, it's going to be a painful economic situation (well, except for a certain individual).

Here is the article

2-23-2011

http://news.yahoo.com/s/ap/20110223...kaW9uX3RvcF9zdG9yaWVzBHNsawNvaWxwcmljZXNoaXQ-

Oil prices hit $100 per barrel



Analysts say concerns about violence in North Africa and Middle East have added a "fear premium"

The rise has pushed retail gasoline priceshigher in the U.S. despite ample supplies in most parts of the country.

Shares of major oil companies rose in Wednesday trading. Exxon Mobil gained $2.09, or 2.5 percent, at $87.53. ConocoPhillips added $2.07, or 2.7 percent, at $78.68. Chevron rose $2.83, or 2.8 percent, to $103.15. Occidental Petroleum rose $1.90 to $104.04.

 

[ElFenix]

I did a little quick research last night and read that Honda is indeed developing a hybrid version of the Fit. As of now they're not planning to sell it in the U.S., but it's probably just a matter of time.

the insight rides on the fit platform iirc.

 

[WhipperSnapper]

the insight rides on the fit platform iirc.

It's too bad they can't price it like a Fit. I actually saw one when I was driving around a couple hours ago and it looked like a Prius knockoff. I think I'd rather have a Fit.

 

[dmcowen674]

2-24-2011

http://news.yahoo.com/s/ac/20110222/tr_ac/7917882_illinois_drivers_watching_gas_prices_rise_1

Illinois Drivers Watching Gas Prices Rise


Illinois residents have been watching gas prices continue to rise, and southern Illinoisans saw the price go up by 10 cents on Tuesday -- to reach $3.299 in Williamson County. The national average gas price is $3.175 per gallon but in Illinois, state and local taxes have raised the average state price to $3.286. Prices closer to the Chicago area are higher -- ranging from $3.69 to $3.79 per gallon

Rising costs to gas, food and clothing coupled with tax increases in Illinois may lead to more families feeling the pressure to make ends meet.

 

[dmcowen674]

2-24-2011

http://news.yahoo.com/s/ap/20110224...DeW5faGVhZGxpbmVfbGlzdARzbGsDb2lsc2hvb3RzdG93

Oil shoots toward $102


Oil prices zoomed to nearly $102 a barrel Thursday in Asia as chaos in Libya disrupted crude supplies from the OPEC nation, and traders worried instability could spread to oil-rich countries in the Middle East.

Benchmark crude for April delivery was up $3.55 at $101.65 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract, which has soared about 20 percent since last week

 

[Doppel]

It's too bad they can't price it like a Fit. I actually saw one when I was driving around a couple hours ago and it looked like a Prius knockoff. I think I'd rather have a Fit.

But if they could then you'd wonder why a Fit cannot be a few k cheaper. The insight has a more complex powertrain.

Prices closer to the Chicago area are higher -- ranging from $3.69 to $3.79 per gallon

Now you post articles that conflict with you, you said it was over $4 in Chicago?

Also, are you going to post that other article about a doubling of gas prices from two days back but was about a murder instead, or will you continue to troll?

 

[epidemis]

EVs and plug-ins NOW!!!!

 

[bamacre]

Oil heading up, dollar heading down. That aint good, folks.

 

[Doppel]

EVs and plug-ins NOW!!!!

There are already a multitude of inexpensive cars that sip gas. People just don't want them. They would rather complain about oil prices and lack of alternatives but there are already good alternatives.

 

[WhipperSnapper]

There are already a multitude of inexpensive cars that sip gas. People just don't want them. They would rather complain about oil prices and lack of alternatives but there are already good alternatives.

What cars are you referring to? I assume you're referring to non-hybrids? My idea of "sip" is 50 or 60 mpg.

 

[Doppel]

What cars are you referring to? I assume you're referring to non-hybrids? My idea of "sip" is 50 or 60 mpg.

Only one car in the US can get mileage at 50+, but a Honda Fit can be had for under $16k, a Yaris for under $14k, a Hyundai Accent for under $10k. A Prius costs $23k and the money saved on the lower prices of those will wash out, depending on how many miles you get, so good mileage is great but of less relevance when looking at cost of the car.

High oil costs will hurt the economy in a general sense but for those willing to drop to a smaller vehicle the hit is far more reserved. that is, assuming they are not already driving a small vehicle.

 

[The-Noid]

What cars are you referring to? I assume you're referring to non-hybrids? My idea of "sip" is 50 or 60 mpg.

VW Polo Diesel? Too bad it hasn't taken off in the USA. I think at minimum we should continue to have at least 8 cylinders, maybe more.

 

[TheSlamma]

I did a little quick research last night and read that Honda is indeed developing a hybrid version of the Fit. As of now they're not planning to sell it in the U.S., but it's probably just a matter of time.

You will prolly want to look for Honda Jazz, when we were in Europe that's what they called em there.

They are wonderful cars, my wife has a 2007 Fit we got new and it's been a wonderful car for us. We love seeing more and more of them all over the road now. With as much room as the Fit has I don't know why people buy small SUV's like the RAV and CRV, they are the same thing that just sits up a few inches more and down on MPG's.

 

[MiniDoom]

Ride a bike more. My bike has great gas mileage. something like the equivalent of more than 500 miles to a gallon...

 

[bamacre]

^^ LOL

But as funny as that is, it's not practical for most people. I don't want to know how long it would take me to ride a bike to work, and then back home, every day.

 

[LegendKiller]

Oil heading up, dollar heading down. That aint good, folks.

Didn't we go through this 2-odd years ago when people like you were claiming a huge portion of oil's run up was due to the dollar?

Do you ever learn?

 

[The-Noid]

Didn't we go through this 2-odd years ago when people like you were claiming a huge portion of oil's run up was due to the dollar?

Do you ever learn?

I think what he means to say is a debasement of real commodities in all currencies, not just the US dollar.

The good thing is I am sure this has nothing to do with it http://research.stlouisfed.org/fred2/data/BASE_Max_630_378.png I did hear a nice speech today though that all the liquidity could be sucked out in 7 years. Great only 7 more years of a commodity boom then as people fear inflation.

Funny how it used to be people ran to commodities when inflation was high for a hedge, now people run to commodities figuring inflation will happen.

Is it the chicken or the egg?

 

[LegendKiller]

I think what he means to say is a debasement of real commodities in all currencies, not just the US dollar.

The good thing is I am sure this has nothing to do with it http://research.stlouisfed.org/fred2/data/BASE_Max_630_378.png I did hear a nice speech today though that all the liquidity could be sucked out in 7 years. Great only 7 more years of a commodity boom then as people fear inflation.

Funny how it used to be people ran to commodities when inflation was high for a hedge, now people run to commodities figuring inflation will happen.

Is it the chicken or the egg?

We went through this whole dollar index = higher oil prices when oil was spiking back in 2008. I fought against it every step of the way.

These guys think that monetary inflation = all inflation, without regard to chicken or egg.

 

[The-Noid]

We went through this whole dollar index = higher oil prices when oil was spiking back in 2008. I fought against it every step of the way.

These guys think that monetary inflation = all inflation, without regard to chicken or egg.

I think like you it is a little bit of everything (push, pull, cost, commodity, monetary, current account leading to FX) with a whole lot of fear and uncertainty thrown in.

The Middle East situation has brought that to a head. All the actual users of the commodities, seeing oil run knowing margins are getting compressed are fearing a 2008 like incident.

The one thing I know is everyone that was setup for the WTI/BC spread compression trade, that was the subject of every desk on the street, are still getting crushed. Is $15 the new $3?

 

[Svnla]

...... With as much room as the Fit has I don't know why people buy small SUV's like the RAV and CRV, they are the same thing that just sits up a few inches more and down on MPG's.

I will tell you why. We just could not stand the rear of the Fit, the front is fine. If the Fit looks as good as the CR-Z, we would get one pronto.

LOL @ rdubz - cute pic.

 

[dmcowen674]

http://www.guardian.co.uk/business/2011/feb/24/oil-surges-libya-middle-east-fears

Oil surges nears $120 a barrel



Inflation concerns drive gold to $1,415.45 an ounce

Oil prices have gained 15% in the past four days

If Libya and Algeria were to halt oil production, prices could peak above $220 a barrel