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

[WhipperSnapper]

According to Gas Buddy, it's $3.70-$3.80 in my area. That price (mostly $3.80) has held pretty steady for months. It barely seems to move, but I'm in a town of just 60,000 right now.

 

[Doppel]

Did this thread really backfire? It's the most popular thread that I've ever posted, anywhere and nearing 2000 posts. Apparently it's a timely subject of great and continuing interest to many people, and the issue of high gas prices and its effect on the U.S. economy won't be going away anytime soon (unfortunately).

Whenever I go grocery shopping, I look at how food prices have nearly doubled and I wonder how much of it is due to high oil prices in various ways. It costs more to transport the food to the grocery stores, it costs more to fuel farm equipment, and because we are using corn as a source of fuel, it costs more to feed livestock (our meat). Corn syrup is also used in a great many products.

Food prices in aggregate have not come anywhere close to doubling.

Honestly the main reason I still come to this thread is to call out SETI-boy on his constant lies. The price of gas hasn't moved all that much in many weeks now.

 

[Engineer]

The stations out by the Interstate that had jumped to $3.65 last week and then dropped to $3.41 by yesterday are now back to $3.69. Remaining stations at $3.38 to $3.48 between work and home.

 

[werepossum]

Yeah it's pretty stupid. The last go around a lot of speculation, but this time? lols no. This time we're getting fucked by nations and corporations. There was a ton of articles that came out around the time the "Arab Spring" jumped and everyone thought a rise, then boom speculators lost TONS AND TONS of money. Why? There was no supply issues, none whatsoever. People were making it up, in fact demand in certain parts of the world is so far down these guys have tanks full waiting to be refined. Oil companies and producers are screwing us and trying to pin it on their 08 accomplice.

I suspect you are correct about the speculators. However, oil companies and producers are not screwing us; they are charging for their product the price the free market has set. Most of us engage in considerable discretionary driving. For instance, I am free to drive only to the nearest bus stop and ride the bus into town, then walk to work. My wife drags me all over Chattanooga on the weekends, and sometimes I go out for lunch instead of eating at work. By making these decisions, we have collectively accepted the current gas pricing.

You can argue with Dave over the exact price of gas. And frankly, it isn't hurting me; last two tanks my Ninja has gotten 60 mpg, and my round trip to work uses less than half a gallon. But Whippersnapper's core points - that gas has skyrocketed and that this will worsen the US economy as a heavy user rather than exporter - are undeniable, even now that gas has leveled off and is ever so slowly dropping.

 

[Doppel]

I suspect you are correct about the speculators. However, oil companies and producers are not screwing us; they are charging for their product the price the free market has set. Most of us engage in considerable discretionary driving. For instance, I am free to drive only to the nearest bus stop and ride the bus into town, then walk to work. My wife drags me all over Chattanooga on the weekends, and sometimes I go out for lunch instead of eating at work. By making these decisions, we have collectively accepted the current gas pricing.

You can argue with Dave over the exact price of gas. And frankly, it isn't hurting me; last two tanks my Ninja has gotten 60 mpg, and my round trip to work uses less than half a gallon. But Whippersnapper's core points - that gas has skyrocketed and that this will worsen the US economy as a heavy user rather than exporter - are undeniable, even now that gas has leveled off and is ever so slowly dropping.

Hey, it's a key tenet of modern America. Complain about gas prices while you fill your F150 that transports you to your white collar job with a tow hitch that's never towed a damn thing. Trucks are sexy, though. Big crew cab Rams and 150's. Big engines, big capacity, ready for anything.

 

[fleshconsumed]

Gas stations are crazy. This morning shell station on my way to work was 3.71 regular, on my way home it was 3.95 making it all the way back to the pre-oil-crash pricepoint. WTF?

 

[BarneyFife]

Guys, its supply and demand and according to one idiot in here, Exxon only make .02 a gallon on gas.

 

[dmcowen674]

What happened today?

Did oil jump back to $120?

20 cent jump $4.29 to $4.49

 

[Doppel]

Prices fell for me a penny or two in the last day. Nationally they are flat or up a penny.

 

[amdhunter]

*sigh* I should have filled up yesterday. All the news stations this morning are talking about Doomsday with the "earthquake" and hurricane Emily coming. One station here shot up 35 cents. (Bronx, NY - I use premium.)

It's frustrating. Also pissed that insurance companies are salivating because they finally have a reason (first hurricane in years, earthquake damage) to raise premiums after years of stagnant "low" rates.

What a BS situation we live with. :thumbsdown:

 

[Capt Caveman]

What happened today?

Did oil jump back to $120?

20 cent jump $4.29 to $4.49

Chicago Average under $4 - http://www.chicagogasprices.com/

 

[IceBergSLiM]

Guys, its supply and demand and according to one idiot in here, Exxon only make .02 a gallon on gas.

Its amazing to me in that in nearly 100 years we have been using gasoline no one has figured out how to make more than .02 a gallon off of it.

 

[Engineer]

Its amazing to me in that in nearly 100 years we have been using gasoline no one has figured out how to make more than .02 a gallon off of it.

The refineries have. Some have made up to $1.20 per gallon (Midwest) during the last few months (it's posted in this thread somewhere AFAIR)

 

[BlahBlahYouToo]

have to wonder where gas prices would be headed if Irene went towards the gulf instead of up the atlantic.

 

[werepossum]

Hey, it's a key tenet of modern America. Complain about gas prices while you fill your F150 that transports you to your white collar job with a tow hitch that's never towed a damn thing. Trucks are sexy, though. Big crew cab Rams and 150's. Big engines, big capacity, ready for anything.

This is true. But if you need a truck, there's not a lot of choice. When my Nissan 720 couldn't meet Hamilton County emissions standards, I sold it dirt cheap and bought a new truck. Imagine my shock when I learned that 2004 replacements for my 1985 28 mpg Nissan 720 (built in Tennessee by the way) all got much worse gas mileage and are as big as a 70s era full size truck. (My Ranger 4x2 gets 19/23.) And I do tow a boat - but it's small and light, and my 2500 lb Tracker convertible tows it just fine.

We need smaller, higher MPG truck options. I need room for sheets of plywood, not my Tracker. I need to tow a small boat, not my house. And I need acceptable power for normal operations; I'm fine with being low on power the times I tow. I don't want to force my needs on other people, but a choice between a passenger car and Truckzilla would be nice.

 

[Engineer]

have to wonder where gas prices would be headed if Irene went towards the gulf instead of up the atlantic.

Yea, CNBC stated that gas could go up $0.20 to $0.30 short term as Irene goes up the coast. Not surprising (and no refineries have shut down yet).

 

[dmcowen674]

Yea, CNBC stated that gas could go up $0.20 to $0.30 short term as Irene goes up the coast. Not surprising (and no refineries have shut down yet).

They just ordered the shutdown of the Refineries in New Jersey.

 

[Doppel]

This is true. But if you need a truck, there's not a lot of choice. When my Nissan 720 couldn't meet Hamilton County emissions standards, I sold it dirt cheap and bought a new truck. Imagine my shock when I learned that 2004 replacements for my 1985 28 mpg Nissan 720 (built in Tennessee by the way) all got much worse gas mileage and are as big as a 70s era full size truck. (My Ranger 4x2 gets 19/23.) And I do tow a boat - but it's small and light, and my 2500 lb Tracker convertible tows it just fine.

We need smaller, higher MPG truck options. I need room for sheets of plywood, not my Tracker. I need to tow a small boat, not my house. And I need acceptable power for normal operations; I'm fine with being low on power the times I tow. I don't want to force my needs on other people, but a choice between a passenger car and Truckzilla would be nice.

I guess you could be a buyer for that Indian truck that was supposed to get here soon. Pretty spartan, I can't remember its name now...

 

[dmcowen674]

8-25-2011

http://ph.news.yahoo.com/oil-rises-irene-heads-east-coast-172335094.html

Oil rises as Irene heads for the East Coast


Oil rose Thursday as concerns grew about the potential impact of Hurricane Irene on U.S. oil and gas supplies.

Analyst Tom Bentz with BNP Paribas Commodity Futures in New York thinks Irene is pushing up oil because of the possible problems that coastal flooding could cause for refineries and shipping. Refineries in Delaware, New Jersey, Pennsylvania and Virginia produce nearly 8 percent of the country's gasoline and diesel fuel.

 

[werepossum]

I guess you could be a buyer for that Indian truck that was supposed to get here soon. Pretty spartan, I can't remember its name now...

Maybe. My criteria are first, American made, then American company, then competitive criteria. But I can be flexible if the criteria dictate. I've bought three Chevy Trackers (built by Suzuki in Japan and Canada and rebadged as Chevies or Geos) instead of Jeeps because much as I like Jeeps, I just can't bring myself to buy a small, four-passenger convertible 4X4 that gets 17 mpg. That's just wrong. Maybe if Jeep uses that efficient Fiat small engine technology to bring up the mileage, I'll buy a Jeep next time.

We only put 5k to 6k a year on the truck, so I'd bite the bullet and buy American even though I have nothing against India.

 

[ElFenix]

Hey, it's a key tenet of modern America. Complain about gas prices while you fill your F150 that transports you to your white collar job with a tow hitch that's never towed a damn thing. Trucks are sexy, though. Big crew cab Rams and 150's. Big engines, big capacity, ready for anything.

and idling for 10 minutes in the drive through lane at the local chik-fil-a when going inside take 3.


sometimes i wonder how much gas we waste in drive throughs.

 

[Arkaign]

I love how gas prices rise instantly even on news of possible issues anywhere, when they paid less for the inventory gas already in the tanks, then gas doesn't fall until waaaaaay after cheaper gas is moving through distribution. They love having it both ways.

 

[momeNt]

I love how gas prices rise instantly even on news of possible issues anywhere, when they paid less for the inventory gas already in the tanks, then gas doesn't fall until waaaaaay after cheaper gas is moving through distribution. They love having it both ways.

Many studies have been done on the allegations of asymmetrical relationships between the price of crude and final gasoline which is what you are alleging here. Generally they find that asymmetrical relationships are very minimal and nearly all the time in all countries, especially in the USA where we have some of the most efficient refining network in the world, relates in a symmetrical manner to price increases and decreases.

When oil rises the price of gas must go up because gas is priced to restore inventory, the same must happen when the price of oil falls. If you feel this isn't the case, it most likely just has to do with being human and accentuating the negative more than the positive.

http://www.stat.pitt.edu/stoffer/tsa2/oil_gas.pdf

 

[dmcowen674]

East coast already out of gasoline, midwest refineries told to start shipping trucks east.

Gas prices skyrocketing.

Probably will surpass Katrina prices.

 

[Londo_Jowo]

East coast already out of gasoline, midwest refineries told to start shipping trucks east.

Gas prices skyrocketing.

Probably will surpass Katrina prices.

What's the status of vinegar???