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

[First]

I don't get the drop in oil prices; I've seen it drop precipitously from high $3's (say $3.90) to $3.43-$3.49 all throughout Southern California for 87 unleaded. I love it, just don't understand why it's happening with oil at $95-$100/barrel during this whole time.

 

[WhipperSnapper]

I don't get the drop in oil prices; I've seen it drop precipitously from high $3's (say $3.90) to $3.43-$3.49 all throughout Southern California for 87 unleaded. I love it, just don't understand why it's happening with oil at $95-$100/barrel during this whole time.

What exactly is the relationship between the commodity's price and the price of gas at the pump? It's a good question. There may be a lag between the increase in the commodity price and the pump price, or there could be other factors involved such as refining capacity.

 

[Ninjahedge]

Unless the price changes drastically, there is no direct correlation anymore.

Shipping, refining and taxes have seen to that.

The thing is, most involved will try to double gas prices if oil prices double.

if the people are willing to pay, they will, as any smart businessman will do, try and get what they can when they can.....

 

[dmcowen674]

Oil didn't stay down near 90 for very long.

It's back to within $1 of 100 again.

http://finance.yahoo.com/news/Oil-price-jumps-3-percent-apf-3217867477.html?x=0

Oil price jumps more than 3 percent


Oil prices soared on promising economic news out of Europe and the U.S.

PFGBest analyst Phil Flynn said that oil traders also are increasingly concerned about political instability in Kazakhstan, which exports about 1.3 million barrels of oil per day.

Although Kazakhstan supplies less than 2 percent of the world's oil, petroleum stockpiles are so tight that any disruption could send tremors through oil markets. A rebellion in Libya this year sent oil prices to three-year highs near $114 per barrel.

Meanwhile, Americans continued to cut back on gasoline.

Demand at the pump has been down for nearly 10 months.

The national average in 2011 is expected to be the highest ever at above $3.50 per gallon.

MasterCard SpendingPulse said Tuesday that the four-week average gasoline demand dropped by 4.2 percent when compared with the same period last year.

 

[blackangst1]

Meanwhile, Americans continued to cut back on gasoline.

Demand at the pump has been down for nearly 10 months.

Excellent news.

 

[Ninjahedge]

Hopefully hybrid and electric tech has gotten popular enough to run on its own w/o any other incentive programs....


We will see how this plays out.

 

[werepossum]

Hopefully hybrid and electric tech has gotten popular enough to run on its own w/o any other incentive programs....


We will see how this plays out.

They aren't even close, relying on subsidies from manufacturers selling below cost (paid by those buying other vehicles) and from government (paid by taxpayers.) They are getting closer, however, and by using less gasoline help drop costs for everyone using gasoline, so they aren't total leaches.

We need domestic RE mining & refinement and more cutting edge battery research. Right now battery energy storage versus mass and cost is the major factory arguing against hybrids and electrics. I'd also like to see more research and adoption of hydraulic and flywheel hybrid designs on heavy urban vehicles like buses and delivery trucks.

 

[WhipperSnapper]

Excellent news.

Not necessarily. Is the decrease in demand at the pump the result of increased fuel efficiency or people being unable to afford to drive as much as they used to?

 

[dmcowen674]

2-22-2011

http://finance.yahoo.com/news/oil-rises-4th-day-touches-200257653.html

Oil touches $100 a barrel again


Gasoline demand was down 2.6 percent from last year through the first nine months of the year, according to government data. Drivers cut back amid high pump prices and worries about the economy.

"That's an astonishing amount," said Andrew Lipow, an independent oil analyst.

Oil prices rose for the fourth day in a row Thursday amid signs of an improving U.S. economy and concerns about global supplies.

The price of benchmark crude rose 86 cents to finish at $99.53 per barrel in New York. At one point in the session it hit $100.05. Brent crude, which is used to price crude produced in many foreign countries and is important for U.S. gasoline producers, rose 18 cents to end at $107.89 per barrel in London.


A series of positive reports in the U.S. suggested that the economy is slowly improving. That has sent stock prices and oil prices higher this week.

 

[Engineer]

Gas in Lexington had been going down pretty good lately and touched $2.95 as of yesterday morning. Yesterday evening, it shot up $0.44 to $3.39 per gallon (national average is around $3.20). There was no explanation as to why it shot up 15% in one day.

 

[SparkyJJO]

It shot up here too. Oil jumped over $5 a barrel in one day on Tuesday (currently up over $6 a barrel compared to Monday). Of course as soon as oil jumps, gas jumps almost instantly too. But then, if oil drops, it takes forever for the gas prices to slide downward. Always irks me.

 

[hal2kilo]

2-22-2011

http://finance.yahoo.com/news/oil-rises-4th-day-touches-200257653.html

Oil touches $100 a barrel again


Gasoline demand was down 2.6 percent from last year through the first nine months of the year, according to government data. Drivers cut back amid high pump prices and worries about the economy.

"That's an astonishing amount," said Andrew Lipow, an independent oil analyst.

Oil prices rose for the fourth day in a row Thursday amid signs of an improving U.S. economy and concerns about global supplies.

The price of benchmark crude rose 86 cents to finish at $99.53 per barrel in New York. At one point in the session it hit $100.05. Brent crude, which is used to price crude produced in many foreign countries and is important for U.S. gasoline producers, rose 18 cents to end at $107.89 per barrel in London.


A series of positive reports in the U.S. suggested that the economy is slowly improving. That has sent stock prices and oil prices higher this week.

I really don't know why I'm posting in a McOwned thread, but dude give it up, I just paid 3.27 a gallon at Costco. My state has the highest taxes on gasoline in the country.

Grow-up, stop wasting bandwidth. Seek help from a mental health professional.

 

[Engineer]

It shot up here too. Oil jumped over $5 a barrel in one day on Tuesday (currently up over $6 a barrel compared to Monday). Of course as soon as oil jumps, gas jumps almost instantly too. But then, if oil drops, it takes forever for the gas prices to slide downward. Always irks me.

Actually, for the first time in a year, oil had shot up but gas continued down. Gas was much cheaper (at $2.95) at the current mid $90 rate for oil than it was when oil was down to $75 (over 2 months ago).

 

[dmcowen674]

Gas in Lexington had been going down pretty good lately and touched $2.95 as of yesterday morning. Yesterday evening, it shot up $0.44 to $3.39 per gallon (national average is around $3.20). There was no explanation as to why it shot up 15% in one day.

Chicago gas experts are baffled as well on a huge jump there

12-22-2011

http://chicago.cbslocal.com/2011/12/22/gas-prices-jump-14-cents-overnight-analyst-cant-explain-why/

Gas Prices Jump 14 Cents Overnight; Analyst Can’t Explain Why



If you’ve filled your gas tank Thursday, you probably noticed a sudden spike in prices.

As WBBM Newsradio’s Regine Schlesinger reports, a Chicago oil analyst is at a loss to explain it.

Analyst Phil Flynn with PFGBEST in Chicago says there is no logical reason.
“Usually when you see this type of spike, it’s usually due to a refinery outage or something like this, but to get this kind of a spike ahead of the holiday, this dramatic, to me, is quote surprising,” Flynn said.


Flynn’s best guess for the sudden rise is dealers capitalizing on the expected crush of holiday travelers this weekend.

Flynn says this year has been a disaster for gas prices, which soared on news of the war in Libya and other events. But in recent weeks, prices have come down sharply, which makes the sudden jump all the more baffling.

 

[Londo_Jowo]

Gas prices still falling in Texas. I paid $2.79/gal (including discount) this morning.

http://www.houstongasprices.com/Shell_Gas_Stations/Sugar_Land/113096/index.aspx

 

[dmcowen674]

Gas jumped another 30 cents overnight.

How high will it go this time?


12-23-2011

http://finance.yahoo.com/news/oil-p...BzdGNhdANob21lBHB0A3NlY3Rpb25zBHRlc3QD;_ylv=3

Oil price near $100 on global security concerns



Oil prices rose above $100 a barrel Friday as worries over global security issues outweighed weak economic data in the U.S.

Benchmark crude ended the day at $99.68 per barrel in New York, up 15 cents. It rose as high as $100.23 during the session.

Tensions between Iran and western nations, along with unrest in Syria, Bahrain, Kazakhstan and Iraq have raised worries that oil supplies could be disrupted if the unrest spreads or grows more serious.

While none of those situations has disrupted oil supplies yet, traders say it is too dangerous to sell oil or bet that oil prices will fall with tensions so high near so many important oil-producing regions.

 

[Doppel]

Gas jumped another 30 cents overnight.

How high will it go this time?

Nope, you're lying again (as always).

 

[First]

Gas jumped another 30 cents overnight.

How high will it go this time?

Stop lying, troll.

 

[Svnla]

It is still $2.95/gal for 87 oct regular for the last two and half weeks here.

 

[Londo_Jowo]

Gas jumped another 30 cents overnight.

How high will it go?

Hopefully high enough you have to choose between driving and having internet access.

 

[dmcowen674]

More China on the move west

12-24-2011

http://news.yahoo.com/chinese-oil-giant-acquires-canadian-energy-company-033902085.html

Chinese oil giant acquires Canadian energy company



A Chinese state-owned oil company has acquired Canada's Daylight Energy in the second major Chinese purchase of a Canadian energy company this year.

A unit of Sinopec Corp. and Daylight Energy Ltd. announced the 2.2 billion Canadian dollar ($2.1 billion) acquisition was completed Friday.


China's state-owned energy companies, flush with cash from the country's economic boom, are acquiring oil and gas assets abroad in hopes of profiting from surging global demand.


In November, state-owned CNOOC Ltd. acquired Canada's OPTI for $2.1 billion.

 

[Londo_Jowo]

More China on the move west

A Chinese state-owned oil company has acquired Canada's Daylight Energy in the second major Chinese purchase of a Canadian energy company this year.

In November, state-owned CNOOC Ltd. acquired Canada's OPTI for $2.1 billion.

Yeah baby!!!! Higher gas prices for McOwned!!!!

 

[werepossum]

I really don't know why I'm posting in a McOwned thread, but dude give it up, I just paid 3.27 a gallon at Costco. My state has the highest taxes on gasoline in the country.

Grow-up, stop wasting bandwidth. Seek help from a mental health professional.

Three things. First, it's a WhipperSnapper thread, and while I disagree with him on a fair number of issues, his original post was a crystal ball.

If you think that gas prices have been increasing lately, it's not your imagination. $3/gallon used to be reserved for the summertime, but it's already here in December and it could get even higher before the year is out. Perhaps we'll cross the $4/gallon barrier this summer.

Higher gas prices should worsen an already awful U.S. economy and job market.

Gas Prices on Track for Unseasonable Spike

(Aren't you glad you bought that economy car now and not that big gas guzzling SUV you wanted?)

Gasoline did indeed go above $3, touched $4 (and above in some places), and has lingered at high levels for more than a year and a half.

Second, WhipperSnapper's original point was that high gas prices (indeed, like high prices on any common energy source) have an immediate and deleterious effect on the economy. I don't think many people would disagree with this. For most people, high gas prices reduces what they can and will spend on other things, and since two-thirds of our gasoline is from imported crude, a lot of that money runs straight out of our economy, especially when gasoline is up because of high crude prices.

And third, Chicago usually has one of the highest gasoline costs in the nation. It uses unique "boutique" blends of gasoline, and it's not at all unusual for Chicago to have the highest prices in the contiguous states. http://www.suntimes.com/business/5006308-420/chicago-has-highest-gas-price-in-nation.html
http://www.myfoxchicago.com/dpp/news/metro/chicago-high-gas-prices-pain-at-the-pump-20110424
Even today, average gasoline prices in Chicago are quoted at $3.469 - I just paid $2.979 in north Georgia, and Chattanooga averages just $3.059. http://www.gasbuddy.com/GB_Price_List.aspx
Depending on where you live in Chicago, you may have to go well out of your way to find gas a cheap as many areas of our Left Coast.

 

[Doppel]

And third, Chicago usually has one of the highest gasoline costs in the nation. It uses unique "boutique" blends of gasoline, and it's not at all unusual for Chicago to have the highest prices in the contiguous states. http://www.suntimes.com/business/5006308-420/chicago-has-highest-gas-price-in-nation.html
http://www.myfoxchicago.com/dpp/news/metro/chicago-high-gas-prices-pain-at-the-pump-20110424
Even today, average gasoline prices in Chicago are quoted at $3.469 - I just paid $2.979 in north Georgia, and Chattanooga averages just $3.059. http://www.gasbuddy.com/GB_Price_List.aspx
Depending on where you live in Chicago, you may have to go well out of your way to find gas a cheap as many areas of our Left Coast.

Its gas is pricey but as you well know that doesn't change the fact that mcowned continually lies about its prices as proven time and again with refuting his nonsense via a simple link to chicagogasprices.com. He just pulls numbers out of the air. I know people in the past have called gas stations to prove he was lying and always found to be lying. Literally more than 50% of his posts in this thread contain a demonstrable falsehood, no exaggeration.

 

[WhipperSnapper]

Three things. First, it's a WhipperSnapper thread, and while I disagree with him on a fair number of issues, his original post was a crystal ball.

This is by far the most popular and longest-lived thread I've ever started anywhere. Obviously, this issue really touched a nerve with many people. I hadn't imagined that it would ever surpass 2000 or even 500 posts, but it's a very important cause for concern, apparently.

Second, WhipperSnapper's original point was that high gas prices (indeed, like high prices on any common energy source) have an immediate and deleterious effect on the economy. I don't think many people would disagree with this. For most people, high gas prices reduces what they can and will spend on other things, and since two-thirds of our gasoline is from imported crude, a lot of that money runs straight out of our economy, especially when gasoline is up because of high crude prices.

It should be noted that the effect of the gas prices is not merely on how much money people spend to fuel their vehicles, but that it also raises the prices for every other good and service that people purchase and consume. It's like a double whammy. Our entire economy is dependent on the combustion of fossil fuels. Gasoline and diesel run farm equipment and the trucks that deliver all of the food and manufactured goods to the supermarket and super stores. A good portion of the increase in food prices is probably attributable to higher gas prices. Higher oil prices also increase the demand for ethanol (corn) as a fuel additive and alternative, which increases the price of corn (which is used as corn syrup in a great many if not most products) which increases the price of animal feed and thus the price of meat.

The high gas prices have also hit taxpayers by increasing the costs of operating police and fire departments and public school buses, and it has to have critically affected the U.S. Postal Service. It's driven up airfares, too.

Consequently, the higher gas prices have to have negatively impacted our economy in other ways, reducing the overall amount of commerce (the amount of goods and services that people can purchase and consume) and thus reducing the number of jobs for people.

If we could measure the overall effect of higher gas prices in terms of a percentage reduction in people's standard of living, it would probably be pretty significant.