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

[dmcowen674]

Keep seeing headlines about gas inching down but not here in Chicago.

It did get to $4.09 here in the burbs but then shot up 30 cents to $4.29

Over $4.59 in the city

Nothing in the news about it here in Illinois but there has been grumbling about it in the news just south of us in Indiana.

 

[PhoKingGuy]

3.55 for premium in Sarasota, shrug.

 

[dmcowen674]

5-7-2012

http://finance.yahoo.com/news/oil-drops-below-98-us-121507479.html

Oil drops to below $98


Oil supplies highest since 1990

Crude has slumped from $110 in February amid signs oil demand may be weaker than previously expected.


The Energy Department said last week that U.S. crude inventories have risen to the highest since 1990. That was followed by the Labor Department on Friday announcing the economy added 115,000 jobs in April, far fewer than the 165,000 analysts were expecting.


"Economic indicators both in the U.S. and Europe are taking on a more negative appearance," energy trader and consultant Ritterbusch and Associates said in a report.

 

[First]

Dave, your posts are awful. FYI.

 

[dmcowen674]

Dave, your posts are awful. FYI.

Thanks

 

[dmcowen674]

Oil got down as low as $96.80

5-8-2012

http://www.reuters.com/article/2012...8?feedType=RSS&feedName=rbssEnergyNews&rpc=43

U.S. crude oil falls $1 as demand outlook dims



U.S. light crude oil futures fell more than $1 a barrel on Tuesday as signs of economic slowdown on both sides of the Atlantic deepened fears of lower oil demand at a time of ample supply from major oil producers.


U.S. crude for June slipped to a low of $96.80, down $1.14, before recovering slightly to trade around $96.85 by 0734 GMT.

 

[desy]

Yep price of oil is variable like corn, sugar, gold, uranium etc

 

[dmcowen674]

OK, which P&Ner wrote this article?

5-8-2012

http://finance.yahoo.com/blogs/brea...RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25z;_ylv=3

Gas Prices Falling: Next Stop $3 a Gallon?



Mainstream media spent much of early 2012 selling consumers on the idea that $5 per gallon gas was inevitable. Not wanting to seem insensitive to genuinely cash-strapped consumers, pundits and politicos blamed Iran, energy policy and speculative "gambling" as the cause of the march towards all-time high prices at the pump.


Then, just when the outrage was truly building, crude oil and gasoline prices started moving lower. West Texas Intermediate (WTI) crude oil has fallen 10% since the start of May! According to AAA, the national average price for a gallon of gasoline has dropped to $3.76 from $3.92 in just the last one-month period. Still painfully high but well below what we were paying this time last year -$3.96 a gallon.

According to Phil Flynn, contributor to the Fox Business Network and senior energy analyst at PFG BEST, the recent decline in energy prices is only getting started. The admittedly "pro-giddy" Flynn says there's a glut of oil available and lessening demand; an economics 101 recipe for falling prices.
Flynn runs through a list of reasons why crude oil is weak, including record OPEC output, the crumbling economy in Europe, and a run of horrible economic in the U.S., culminating in Friday's atrocious jobs report.


"The question isn't why oil is falling," he says. "The question should be why it's held up so good so long?"


An even better question for Americans is how crude oil can be down 10% but gasoline prices only half that much.

Seasonal blends aside, Flynn thinks pump prices are going lower.


"You're going to see more significant downside pressure on gasoline; there's a good chance we could test $3 a gallon on a national average pretty soon," he predicts. This would be nearly a 20% drop from the current price level.

Whether $3 a gallon gas can save the moribund U.S. economy remains to be seen, but as we head towards peak driving season, many Americans should welcome the relief.


Are high gas prices impacting your travel and spending?



Let us know in the comment section below or visit us on Facebook.

45 comments

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David • 9 minutes ago

Here's the next question. Will we see a drop in food costs with the drop in fuel costs?

SC

When gas prices hit $4 back in what 08-09 the economy shut down. So there was no way it could get to $5 because the economy is weaker today than in 08-09.

Reply
Magron
Magron • De Witt, New York • 13 minutes ago

that would irritate me. I just filled up for the month yesterday.

Reply
Steve G
Steve G • New York, New York • 16 minutes ago

Huh? Falling gas prices also means lower economic growth and the data the last 10 weeks has been downright dreadful. No one is happy its "only" $3.75....its still a ball buster for 94% of the country at that level and stealth prices inflation is already working through ths system because of it....

1 Reply
mcex
mcex 2 minutes 51 seconds ago

Right on .... but I don't see anything "Stealth" in the price of just about everything.
Robert
Robert • Albuquerque, New Mexico • 15 minutes ago

I am still waiting for gas prices in my area to drop more than 3 cents ! This 10 to 14 % drop in oil prices isn't showing up around me in gas prices . Gas prices should be down at least 50-60 cents a gallon by now ,not the 3 cents we have in my area !

1 Reply
FRAUD

FRAUD 7 minutes ago

That's called gouging on the way down. When the barrel goes up the prices at the pump shoot up like a rocket. But when the barrel comes down the price comes down one little drop at a time.


rudy
rudy • Elmhurst, Illinois • 6 minutes ago

Chicago/Crook County gas will never go down. If oil prices fall they will simply raise taxes.

Reply
Smoothie

Smoothie • 51 seconds ago

Where do you idiots live? Gasoline prices have been going up in california for the past 2 weeks and are right at the highs of a month ago. This despite the decline in oil prices. Get out of your smoke filled offices and look around morons!!

Reply
Gary Langdon

Gary Langdon • Pineville, Louisiana • 2 minutes 16 seconds ago

My cousin in north west California says the great days of old are back---gas has dropped to 4.45/gal.!

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Kevin
Kevin • Fort Worth, Texas • 8 minutes ago

roberts correct its fallen 10 cents here but its already too high as it is why was it almost $4 a gallon but oil was nowhere near what it was last time prices were this high at 105 a barrel last time we were at $3.10ish here now that its falling we should get under $3 but it wont 95 a barrel and... More

Reply
Mike
Mike • 12 minutes ago

Here is what will happen: Gas prices will fall sharply, consumers will use that extra disposable income to stimulate the economy, the economy will strengthen and oil prices will rise, the economy will fall and then we will go thru this process all over again. Hamster wheel anyone?

1 Reply
Melkor43

Melkor43 • 1 minute 0 seconds ago

By the end of the day obummer will be claiming he lowered gas prices.

Reply
Loa

Loa • New York, New York • 52 seconds ago

Politican game for the Dems to make things look good for November

Reply
Sid
10
Sid • Houston, Texas • 4 minutes 2 seconds ago

I still don't know how they justify why gas prices go up or down. "They" always have reasons like Iran or Demand..maybe worldwide instability even though supply is more than demand. Last I checked, Europe is still a mess, Iran threat still exists and our economy is not so hot and prices are going... More

Reply
Scott H
21
Scott H • 4 minutes 56 seconds ago

Not to worry gas prices will jump again starting memorial day .. obammy wouldn't disappoint his fellow marxist to allow gas rices to fall

Reply
frankmargel.com
73
frankmargel.com • 25 minutes ago

It's too late to stimulate the economy with lower gas prices. 20 percent of Americans out of work drive sofa liners and couches. Lower the cable rates. Now that's stimulating! America is bankrupt! The stock market will crash over and over again. Birds will fly upside down, and Obama or Romney will... More

5 Replies
Robert
12
Robert • 10 minutes ago

obama has used his silver bullet! His economic policy is destroying the jobs market and the economy and thus oil prices are declining. Congratulations barack!!! Now when the oil price goes down do we still scream speculators speculators ?

Reply
Jacho
12
Jacho • Wilmington, Delaware • 16 minutes ago

Every time Oil crosses $70 .. it is bad for whole world and only good for Oil companies and those Muslim countries. They just have free ride !!!

1 Reply
Mike K
02
Mike K • Umeå, Sweden • 5 minutes ago

Enjoy this summer.Obama will let the gas prices rise until he leaves office--

Reply
DaveN
11
DaveN • Montpelier, Vermont • 6 minutes ago

"The question isn't why oil is falling," he says. "The question should be why it's held up so good so long?"

Oil and gas prices have remained high so that oil companies can continue making record profits quarter after quarter and these compnaies know there will be no government intervention or investigation into why they're keeping prices high without a justifiable reason. They've done as much to kill the economy as the bankers.

Reply
Joe Flor
14
Joe Flor • 9 minutes ago

time to reelect O'socialist

 

[dmcowen674]

Oil below $95

Gas just dipped below $4 in Chicago suburbs

http://finance.yahoo.com/q;_ylt=Al5...NhdANob21lBHB0A3NlY3Rpb25z;_ylv=3?s=clm12.nym

Crude Oil Jun 12 (CLM12.NYM)

-NY Mercantile

94.15

1.98(2.06%) 7:10AM EDT

 

[redgtxdi]

Refinery woes cause spiking prices in So Cal.


http://abclocal.go.com/kabc/story?section=news/consumer&id=8660377

L.A. fail!

 

[dmcowen674]

Apparently gas is down everywhere in the Country except California and Chicago

5-14-2012

http://www.npr.org/2012/05/13/152599722/the-price-we-paid-gas-is-down-maybe-for-a-while?ft=1&f=10

The Price We Pay: Gas Is Down, Maybe For A While



After spending much of the year on the rise, gas prices are now falling. The average price for a gallon of regular gas nationwide is $3.73, according to AAA. That's a drop of nearly 20 cents in one month, and industry analysts expect the price to keep falling.

You can get in a lot trouble trying to predict commodity prices, though. Phil Flynn, a market analyst at futures brokerage PFGBEST in Chicago, says there is one thing you can predict.

Flynn says it wasn't speculating or lack of supply that drove up prices in the first place. He says it was fear of military action again Iran and the Iranian embargo, as well as countries around the globe hoarding oil.

"But now, because of a reduced risk of a conflict with Iran and the fact that OPEC has really replaced Iranian oil barrel-for-barrel, and countries across the globe have beefed up their supplies, we're now seeing the price of oil fall pretty dramatically," he says. "That's dragging gasoline prices in many parts of the country down with it."

'Fuel Reflects On Everything'

While gas prices have fallen from their high of $3.93, they haven't fallen that much. Analysts say the current $3.73 is still well within the range that causes people to change their habits.

When gasoline prices start going up, people's disposable income changes," he says. "One of the areas, for example, is the restaurant business. It gets hit very quickly because that's a clearly disposable item."

Also, drivers are still flocking toward fuel-efficient cars.
Normally, gas prices would go up for summertime, Flynn says, but this year things are different.


"U.S. production of oil is at the highest level it's been probably since the 1960s," he says, "and that's going to give us lower gasoline prices, hopefully in the future."

 

[dmcowen674]

5-16-12

http://news.yahoo.com/oil-falls-6-month-low-below-93-us-043211022--finance.html

Oil falls to 6-month low below $93 on US supplies


The American Petroleum Institute said late Tuesday that crude inventories rose 6.6 million barrels last week while analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had predicted an increase of 1.5 million barrels.

U.S. crude inventories are at a 22-year high amid weak demand and growing production.

 

[dmcowen674]

5-16-2012


Crude Oil Jun 12 (CLM12.NYM)

-NY Mercantile

92.64

1.34(1.43%) 4:35PM EDT

 

[dmcowen674]

5-16-2012


Crude Oil Jun 12 (CLM12.NYM)

-NY Mercantile

92.64

1.34(1.43%) 4:35PM EDT

That was short lived.

Oil back up over $93 and rising fast

5-17-2012

http://news.yahoo.com/oil-rises-above-93-traders-mull-europe-turmoil-032046106--finance.html

Oil rises above $93 as traders mull Europe turmoil



Oil prices hovered near $93 a barrel Thursday in Asia as traders mulled whether concern over Europe's debt crisis justifies extending a sharp sell-off during the last two weeks.

Some analysts say a slowly improving U.S. economy and signs of growing oil demand in developing countries should keep the crude price from collapsing further.

 

[Pr0d1gy]

You guys do realize that certain people control the cost and price of oil so sitting here blabbing about it is really useless and can only serve to feed the mass hysteria that high gas prices will surely cause, right? This thread is so pointless that it is almost 2 years old and you're still talking as if this is a valid topic of discussion 2 years later.

 

[sportage]

Paid $2.98 gal last 4 fill ups. Flex fuel.

 

[dmcowen674]

You guys do realize that certain people control the cost and price of oil so sitting here blabbing about it is really useless and can only serve to feed the mass hysteria that high gas prices will surely cause, right? This thread is so pointless that it is almost 2 years old and you're still talking as if this is a valid topic of discussion 2 years later.

No way.

The Rich Republicans on here swear it's free open market forces.

 

[Pr0d1gy]

No way.

The Rich Republicans on here swear it's free open market forces.

Oh yeah because if those rich republicans owned an oil leader then they wouldn't collaborate with other filthy rich oil magnates to artificially raise prices to increase their profits....NO WAY!

 

[AznAnarchy99]

Refinery woes cause spiking prices in So Cal.


http://abclocal.go.com/kabc/story?section=news/consumer&id=8660377

L.A. fail!

I was wondering why we had a spike all of a sudden when it was going down..

 

[Pr0d1gy]

I was wondering why we had a spike all of a sudden when it was going down..

We had a similar situation in the southeast after Katrina iirc. It took a few weeks to regulate but prices were, at the time, absurd (over $4 a gallon, which is basically about the norm now but seemed absurd then).

 

[dmcowen674]

5-17-2012

http://news.yahoo.com/nd-becomes-nations-second-leading-oil-producer-201729370--finance.html

ND becomes nation's second-leading oil producer


North Dakota has passed Alaska to become the second-leading oil-producing state in the nation, trailing only Texas, state officials said Tuesday.

North Dakota owes its rapid rise from No. 9 in just six years to improved horizontal drilling techniques in the rich Bakken shale and Three Forks formations in the western part of the state.

 

[Incorruptible]

People can thank obamas fiscal policy for high gas prices

 

[Pr0d1gy]

People can thank obamas fiscal policy for high gas prices

Yeah, totally. Let me guess, we can also blame Obama for Trayvon Martin, Chinese superiority, and the crash of our "free market" before he ever got into office, too, right?

 

[Incorruptible]

Yeah, totally. Let me guess, we can also blame Obama for Trayvon Martin, Chinese superiority, and the crash of our "free market" before he ever got into office, too, right?

Why are you defending barrack hussein obama? His fiscal policy causes high gas prices

 

[Born2bwire]

Why are you defending barrack hussein obama? His fiscal policy causes high gas prices

We invest in oil companies. What's good for the goose...