Gas is going to be 4 a gal this summer

lumbingmi

lumbingmi

Active Member
Joined
Aug 16, 2006
Messages
4,370
Reaction score
6
'Strong Possibility' Gas Will Rise to $4

April 4, 2007 — For the past two weeks, Iran has not just been holding 15 British soldiers captive; it's been holding the world's oil markets hostage, too.

"There's been a $5 or $6 premium that's been built into the price of oil over this," said Phil Flynn, vice president and energy analyst at Alaron Trading. "Even though this crisis has ended, the oil market is still on guard that the tensions in the Middle East are going to continue."

Oil prices spiked this morning when Iranian President Mahmoud Ahmadinejad appeared on television, because of uncertainty over what he was going to announce. When he started awarding medals to the troops who had captured the Britons, traders assumed the worst.

But by the end of Ahmadinejad's television appearance it was apparent that the soldiers were heading home, and the price of a barrel of oil started to retreat from recent highs, giving up more than $1 to drop to about $64.

Analysts say that the price reduction should hold during the coming days but won't translate into lower prices at the pump.

"Things are looking pretty bad for the upcoming summer driving season," said Flynn, citing a new government report showing that the U.S. stockpiles of gasoline fell by 5 million barrels in the past week, much more than analysts were expecting.

Flynn said he believes gasoline prices will head into record territory — currently a nationwide average of $3.07 — by the height of the summer season.

"This is the time of year when we're supposed to be building supplies, but it seems like the refiners just can't get ahead of what has been very, very strong demand," he said.

Today's report shows that the national supply of gas is at the low end of its average range for this time of year, meaning the United States will have less gas in the tank before the peak summer driving season in the coming months.

Analysts said that puts the country on the edge, making any disruption in supply — such as a hurricane in the Gulf of Mexico refining regions or an expansion of the crisis in the Middle East — that much more dangerous.

"Everyone asks me, will we see $4 a gallon? And the answer is, there is a strong possibility that we may see $4 a gallon," said Flynn.
Click to expand...
 
There is a limit to what the US can take in terms of the price of gas. Whenever it reaches that point, the economy will go into a tailspin. That alone will reduce demand for gas and thus reduce the price.

Perhaps that will be the best thing to ever happen to us as the idiot politicians love to leave their messes for somebody else to clean up. It would have been nice for some prescient politicians have put a stiff tax on gas a long time ago to get everybody thinking about alternatives to gas.
 
yea i saw on news on the other day :-X I'm starting to hate every moment of it to get gas often. :-X
 
sr171soars said:
There is a limit to what the US can take in terms of the price of gas. Whenever it reaches that point, the economy will go into a tailspin. That alone will reduce demand for gas and thus reduce the price.
Click to expand...
That's a pretty astute comment. However, $4 gas is peanuts compared to what will happen if 'Peak Oil' is upon the world. U.S. needs to explore energy alternatives now to reduce our reliance on foreign oil and more on our self-sufficiency. If $4 gas gives the economy a needed incentive to explore such options, so be it.
 
Eyeth said:
That's a pretty astute comment. However, $4 gas is peanuts compared to what will happen if 'Peak Oil' is upon the world. U.S. needs to explore energy alternatives now to reduce our reliance on foreign oil and more on our self-sufficiency. If $4 gas gives the economy a needed incentive to explore such options, so be it.
Click to expand...

That is the million dollar question...whether "Peak Oil" is upon us now. I will say we are either very near that point or we have reached it already. While I really admire President Reagan, I feel he did us a disservice by making he bold statement that there is plenty of oil to last for a while. This was in respond to the doomsayers about how much oil was left available and that we should be doing something about it. We could have been working on getting off of this dependency at least two decades if not longer. Instead, we worked on making the Hummer, bigger SUVs and other stupid gas guzzlers for vehicles.

I agree with you that the higher the price of gas, the faster the alternatives to gas comes out of the woodwork. Nothing like a little pain in the wallet to clear people's minds. I remember right before Katrina where we had all these SUVs everywhere. Then all the sudden during the long climb (last summer) to 3+ dollars a gallon how they seemed to be a whole lot less of them on the road. It didn't take $4 gas to get their attention. At $4 a gallon, I expect to see very few SUVs on the road and lots of Toyota Yaris type of vehicles instead.
 
MaxUFC said:
Define bad news for SUVers. :giggle:
Click to expand...
You bet!

I remember 2 summers ago when this guy was getting gas for his H1 hummer. It cost him $80! If gas was $2.25 at that time and $4 this time, he will be spending $142 for gas this summer! I feel sorry for him...
 
Hehe Yea I know that My Hemi will eating my money :giggle:
 
It's not funny for small business owners who have to use a lot of gas. :(
 
diehardbiker said:
Only suckers would think this way.
I depend on my vehicle to go to work and earn money,. Without it, I can't earn anything, how can I be sucker?
Click to expand...
same here i depend on car to earn money for job.. i live 12 miles from my job and there's no bus trasportation or so..


like i said i predicted it will come $8 a gal within 2010 :-x u see its almost $1 more than last year gas prices
 
That's suck... But thank god that I live in Seattle so I could use either Bus or Car to work and home ;) but in the future, it would be suck :ugh:
 
I just got gas last night. It was $2.90 per gallon! Last week, it was $2.70 per gallon. The week before that, it was $2.60 per gallon.

If this keeps up, we will definitely be looking at $4 per gallon this summer! Argh!
 
horselover61 said:
hummmmmmmm i better get a horse. LOL
Click to expand...

Kewl.. also don't forget that Horse's feed hays cost higher too bec farmer use Gas tractors :(:):)


I remma long time in 1987 Hay Bale each cost .75 cents and Now 2007 cost 6. to 10.00 :ugh:
 
vampy -- i got gas yesterday too and it was 2.63 in other town and in my hometown its 2.75 eek. glad i went to better place than in my hometown UGH....
 
I filled the gas at Shell for $2.81 for Honda Accord. :ugh:

Also, I love Honda Accord, better fuel saving than Mustang does.
 
Back
Top