Gov't says gas prices could hit $4 - Political Ravings Forum

Cybergal · #1 04.08.2008

Gov't says gas prices could hit $4
4/8/08

Quote:

NEW YORK - Retail gas prices could climb as high as $4 a gallon this summer, but prices at such lofty levels will make many Americans think twice about hitting the road this summer, the Energy Department said Tuesday.
High prices and a weak economy are expected to cut demand for gasoline by about 0.4 percent during the peak summer driving season, the department's Energy Information Administration said in a monthly report on petroleum supplies and demand. Overall consumption of petroleum products will drop by 90,000 barrels a day this year. Previously, the EIA had projected petroleum consumption would rise by 40,000 barrels a day.
Average monthly gas prices will peak around $3.60 a gallon in June, the EIA said. However, prices could rise much higher than that at times.
"It is important to note ... that even if the national average monthly gasoline price peaks around $3.60 per gallon this summer, it is possible that prices at some point will cross the $4 per gallon threshold," the EIA said.
http://news.yahoo.com/s/ap/20080408/...lBcdbgRMqs0NUE

WiseOne · #2 04.08.2008

COULD? I imagine it WILL hit $4/gallon and more! I still don't think it will stop people from driving their SUVs incessantly, I think it will take at LEAST $5/gallon, IMHO.

jamwadmag · #3 04.08.2008

Quote:

Originally Posted by WiseOne

COULD? I imagine it WILL hit $4/gallon and more! I still don't think it will stop people from driving their SUVs incessantly, I think it will take at LEAST $5/gallon, IMHO.

I see the $5+/gal happening myself. We arent hearing about the rest of the industrialized world complaining about the leaps in gas prices---Europe has been paying the equivalent of $3-4/gal (use liters) for years. A lot must have to do with the weakness of the U.S. dollar also...

attitude:) · #4 04.09.2008

Hi everyone. I can't get onto the truckers report from this PC

Somethings corrupted in the flash player!!I'm living in the panhandle of Texas now vs. west texas. Just wanted to throw in my two cents here,

We're already in a recession. Dont you think this gas hike is going to spiral us down faster than everyone thinks it will?

Smurf-316 · #5 04.09.2008

Quote:

Originally Posted by attitude:)

Hi everyone. I can't get onto the truckers report from this PC

Somethings corrupted in the flash player!!I'm living in the panhandle of Texas now vs. west texas. Just wanted to throw in my two cents here,

We're already in a recession. Dont you think this gas hike is going to spiral us down faster than everyone thinks it will?

Hey Attitude!!
man we been checking dumpsters for your corpse!...lol
glad to see you here. you gotta get that computer fixed.

WiseOne · #6 04.09.2008

Quote:

We're already in a recession. Dont you think this gas hike is going to spiral us down faster than everyone thinks it will?

No doubt in my mind...problem is American's are STILL asleep for the most part. When reality hits, it WILL devastate them and the recession/depression will deepen at that point due the the psychological affects.

Also, go to Adobe's website and re-download Flash Player from there, it will fix that. Since Adobe got Flash Player it has gotten worse to be sure.

Cybergal · #7 04.09.2008

No diesel relief in sight: EIA
4/9/08

Quote:

WASHINGTON -- The U.S. Energy Information Administration predicts that diesel prices in the U.S. will average $3.62 per gallon over the course of 2008 -- 72 cents above the 2007 average prices -- as crude oil prices continue to average over $100 a barrel.

That's according to the EIA's monthly Short Term Energy Outlook released Tuesday. It says West Texas Intermediate crude oil prices, which averaged $72.32 per barrel last year, are projected to average $101 a barrel in 2008, dropping to $92.50 per barrel in 2009.

"The global oil market remains fundamentally tight entering the second quarter, despite a slowdown in U.S. oil consumption and growing risks to global economic growth," says the report. "The combination of rising world oil consumption and low surplus production capacity is putting upward pressure on oil prices. The flow of investment money into commodities has contributed to crude oil price volatility." The EIA report predicts that an increase in oil production in non-OPEC countries will contribute to increases in OPEC surplus crude oil production capacity and ease price pressures toward the end of the year.
http://www.todaystrucking.com/news.c...TOKEN=82132362

Cybergal · #8 04.09.2008

Gas, oil prices hit new records
4/9/08

Quote:

NEW YORK — The upward trend in energy prices showed no sign of abating Wednesday as gasoline set yet another record at the pump and crude oil topped $112 a barrel for the first time in the futures market.

The national average price of a gallon of regular unleaded gas rose 1.2 cents to a record $3.343 a gallon, according to a survey of gas stations by AAA and the Oil Price Information Service. With the peak summer driving season still to come and gas following crude higher, the fuel may well reach the retail price of $4 a gallon that the Energy Department has been forecasting.

But prices that are 55 cents higher than a year ago are hurting demand for gasoline, which fell last week by nearly 2 percent from year-earlier levels, the department's Energy Information Administration said in its weekly inventory report.

"People are cutting back on gasoline purchases because the economy is squeezing them right now," said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago.

The EIA report, closely watched by the futures market, also said crude oil supplies fell by a surprising 3.2 million barrels last week; analysts surveyed by Dow Jones Newswires, on average, had expected an increase of 2.4 million barrels.

That sent light, sweet crude for May delivery up $3.05 to $111.55 on the New York Mercantile Exchange after earlier rising as high as $112.21. That bests a trading record of $111.80 set last month.

Analysts expect demand for gas and oil to fall further as prices rise. Theoretically, that should bring prices down. But so far this year, gas and oil prices have shown little inclination to fall in response to eroding demand. With gasoline supplies shrinking and the summer approaching — when demand, while weaker than last year, will be stronger than it is now — consumers may have to wait until this fall for price relief.

Some analysts cautioned against reading too much into last week's drop in crude supplies.

"We note there was a sharp decline in crude oil imports," said Eric Wittenauer, an analyst at Wachovia Securities LLC in St. Louis, in a research note.

Flynn believes crude imports fell because fog closed the Houston Shipping Channel, a vital oil import conduit, several times last week. "That leads me to suspect that there are more ships out there in the Gulf (of Mexico) that didn't get counted," he said.

Before the EIA issued its report, oil prices were already higher due to the dollar's slide against the euro Wednesday. Many investors see commodities such as oil as an effective hedge against a falling dollar and inflation. Also, a weaker greenback makes oil cheaper to investors overseas.
More here

jff.law · #9 04.17.2008

What is the problem with $4 per Gallon Gasoline?? People all over the world have been paying that for years. Does the US have some right to cheap gas? I guess we didn't learn much from the crisis in the 70s, we cut domestic production, closed very good prospects to exploration, and never seriously looked at alternative sources for fuel like ethanol. Did you wonder how the E85 cars came on the market so fast? It was because they have been making ethanol cars in Brazil for more then 20 years, and the technology was already there.

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