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

[wuliheron]

When everyone wants to screw you the price of vaseline going up really hurts.

 

[xenolith]

Gas prices have officially necessarily skyrocketed. Up nearly 100% since Obama has been in office. How has this hope and change worked for you?

 

[wuliheron]

Ya, know, that whole hopey changey things still works. After Bush drove the economy into the toilet and unleashed these dogs on the commodities market that's about all he left us beside growing rage at the people profiting off our misery.

 

[WhipperSnapper]

Gas prices have officially necessarily skyrocketed. Up nearly 100% since Obama has been in office. How has this hope and change worked for you?

Do you really think Obama is responsible for the gasoline prices? Did Obama wave a magic wand and reduce the amount of oil in the ground? Did Obama do something to increase worldwide demand?

 

[xenolith]

Do you really think Obama is responsible for the gasoline prices? Did Obama wave a magic wand and reduce the amount of oil in the ground? Did Obama do something to increase worldwide demand?

Right. I almost forgot, this is still all dubya's fault. Not to mention those big evil US oil companies that keep spilling oil everywhere.

 

[xenolith]

Ya, know, that whole hopey changey things still works. After Bush drove the economy into the toilet and unleashed these dogs on the commodities market that's about all he left us beside growing rage at the people profiting off our misery.

Actually, dubya made it harder to speculate commodities by increasing margin requirements for oil contracts. Why do you think oil prices plummeted in 2008? Oh, sorry, I didn't mean to disturb your world view with facts... excuse me.

 

[dmcowen674]

Do you really think Obama is responsible for the gasoline prices?

Did Obama wave a magic wand and reduce the amount of oil in the ground?

Did Obama do something to increase worldwide demand?

You do realize there is no shortage of either oil or gasoline right?

Oil is overflowing at the Oil depots with over 20 yr high inventories as well as gasoline tanks over full too.

 

[Doppel]

Actually, dubya made it harder to speculate commodities by increasing margin requirements for oil contracts. Why do you think oil prices plummeted in 2008? Oh, sorry, I didn't mean to disturb your world view with facts... excuse me.

Does this have to be any president's fault?

********************************
Math Korner
Median family income US: $50k.
Average economy of vehicles: 21mpg. But, that includes wealthier people, so I will assume 24 mpg for that median family.
Average miles driven/household: 24,000 (based on a trend found online with earlier data I extrapolate to this)
Gallons consumed/year: 1000.
One year ago annual gas bill: ($2.76*1000) = $2,760
Today annual gas bill: ($3.50*1000) = $3,500

$750/12 = $62.50 less each month has for other expenditures, though only if gas goes up to over $4 will this negate additional money in paycheck like the 2% SS reduction that recently kicked in.

Many economists feel there is a magnifying effect of high gas prices, though in that they make people feel disproportionately poor because they're unavoidable and in your face.

 

[WhipperSnapper]

Right. I almost forgot, this is still all dubya's fault. Not to mention those big evil US oil companies that keep spilling oil everywhere.

Why does it have to be anyone's fault? The limited amount of petroleum is a metaphysical issue and not a man-made issue.

You could fault Bush for failing to invest more money on alternative energy research and development. (Imagine if all the money that was squandered on Iraq were put towards that instead.) I suppose you could fault the oil companies for bribing politicians against legislation that would have encouraged alternative energy R&D.

 

[WhipperSnapper]

You do realize there is no shortage of either oil or gasoline right?

Oil is overflowing at the Oil depots with over 20 yr high inventories as well as gasoline tanks over full too.

I suspect that part of the cost increase is based on knowledge that the amount of oil in the world is limited.

 

[Doppel]

I suspect that part of the cost increase is based on knowledge that the amount of oil in the world is limited.

Exactly right. The run up is not due to lack of oil now but fear of lack of oil in the short term. Can't find the article now saying that, but it was on CNN or yahoo yesterday.


Oil and gold: Rally won't last
http://money.cnn.com/2011/03/07/markets/commodities_oil_gold_predictions/index.htm
Consensus is $95 by end of year. Clearly these experts are wildy in accurate in estimates, historically. So take it for what it's worth (not much).

 

[Engineer]

OPEC in informal talks on increasing production - oil in the $104 range...

Maybe this will finally pop the spectators and send oil crashing.

 

[The-Noid]

Exactly right. The run up is not due to lack of oil now but fear of lack of oil in the short term. Can't find the article now saying that, but it was on CNN or yahoo yesterday.


Oil and gold: Rally won't last
http://money.cnn.com/2011/03/07/markets/commodities_oil_gold_predictions/index.htm
Consensus is $95 by end of year. Clearly these experts are wildy in accurate in estimates, historically. So take it for what it's worth (not much).

Forecasts are up all over the street this week that article is already outdated.

 

[ElFenix]

You do realize there is no shortage of either oil or gasoline right?

Oil is overflowing at the Oil depots with over 20 yr high inventories as well as gasoline tanks over full too.

i've said this before and i'll probably say it again:

in functioning markets shortages do not happen.

 

[Zebo]

When everyone wants to screw you the price of vaseline going up really hurts.

Everything is oil. The computer you are using was made with lots of oil, the food you eat was made with oil, the bugs on the food are killed with oil, the food is transported with oil. Everything is oil. Our whole economy is a derivative of oil. Without oil we live like 1870s again. So yeah Vaseline and plastic it's housed in costs more.

 

[Zebo]

OPEC in informal talks on increasing production - oil in the $104 range...

Maybe this will finally pop the spectators and send oil crashing.

Crashing never again. My feeling is $100 is the new floor just like $75 was for the last 10 years. You'll never see $12-$15 again like in the 80's and 90's.

 

[The-Noid]

REUTERS: EIA Raises 2011 Oil Price Estimate $14 To $105/bbl
DJ: EIA Sees WTI Crude Averaging $102/Bbl In 2011
DJ: EIA Sees 2011 Avg. Gasoline Price of $3.56/Gallon

As I sated previously by the time you read a forecast another is out usurping it.

 

[werepossum]

Crashing never again. My feeling is $100 is the new floor just like $75 was for the last 10 years. You'll never see $12-$15 again like in the 80's and 90's.

I think you're mostly right. OPEC used to try to keep oil at $30 - $35 to keep it from diving to $12 - $15. Now that they've seen the world continuing to function at $75 without significantly lowering demand, the incentive to try keeping oil at $75 - $100 is going to be extremely strong. With China going strong and even the USA slowly recovering, $100 seems like a reasonable floor.

Hey, it's a (probably) finite commodity, and like any other commodity it's worth what the sellers will take and the buyers will pay.

 

[Doppel]

http://www.telegraph.co.uk/finance/...rage-as-global-spare-capacity-wears-thin.html

Makes the argument that excess supply is highly limited, so really very little wiggle room in jacking it up to reduce prices.

 

[WhipperSnapper]

i've said this before and i'll probably say it again:

in functioning markets shortages do not happen.

What if a certain resource that exists in a limited, finite quantity is essential? How is having a market economy going to make the scarcity of things like oil and land magically disappear? Wouldn't much of this depend on your definition of "shortage" and what that means?

 

[AznAnarchy99]

Almost $50 filling up my Honda Civic at $3.78 a gallon.

 

[The-Noid]

Almost $50 filling up my Honda Civic at $3.78 a gallon.

Must resist stereotypical joke...

 

[wuliheron]

Everything is oil. The computer you are using was made with lots of oil, the food you eat was made with oil, the bugs on the food are killed with oil, the food is transported with oil. Everything is oil. Our whole economy is a derivative of oil. Without oil we live like 1870s again. So yeah Vaseline and plastic it's housed in costs more.

You forgot to add all the "oily politicians" to that list.

 

[dmcowen674]

Trump was right. Obviously he has inside information.

For most of the country it will be $7 that means places like here in Chicago, California and New York it will be $8

3-9-2011

http://news.yahoo.com/s/theweek/20110303/cm_theweek/212769_20110303181100

$7 a gallon or even higher



Gas prices keep jumping as the crisis in the Middle East continues.

How high will they go?

Some speculate that gas prices of $7 a gallon (or even higher) might be possible.

 

[Doppel]

dmcowen gets big points for consistency in cherry picking the most dire, most unlikely (the $7 price is one analyst's guess if the Saudi regime goes through a revolution like Libya) data and ignoring the rest, which is more measured and likely, and even in his own links.

Who here thinks he will link articles when oil falls like it did yesterday? http://finance.yahoo.com/news/Oil-f...1.html?x=0&sec=topStories&pos=1&asset=&ccode=