Record gas prices? Drive on!, page 1

privacy

Pages:
ATS Members have flagged this thread 0 times

Topic started on 7-4-2005 @ 10:05 AM by elevatedone

WASHINGTON (Reuters) - U.S. gasoline demand this summer is forecast to increase 1.8 percent from last summer, helping to push pump prices to a peak monthly average of $2.35 a gallon in May, the federal government said on Thursday.

American drivers will consume an average 9.331 million barrels per day (bpd) of gasoline this summer, according to the Energy Information Administration. The forecast from Energy Department's analytical arm is for the busy summer driving season running from April through September.

The expected growth in summer gasoline demand would be higher than the five-year average, the agency said.

"The higher demand is caused by the increasing number of drivers and vehicles, and increasing miles traveled per vehicle," the EIA said. A flat to declining fuel efficiency in the entire U.S. vehicle fleet is also contributing to higher demand, it said.

money.cnn.com... .htm?cnn=yes

Rising crude oil prices are pushing up pump costs. The price for U.S. crude should average $56.62 a barrel this summer, compared to $41.12 for the same period last year.

The EIA said it expects crude costs to stay above $50 a barrel for the rest of 2005 and 2006.

U.S. crude oil futures traded at a record high of $58.28 per barrel earlier this week before declining on the government's report of an increase in weekly inventory.

reply posted on 7-4-2005 @ 10:10 AM by pao

i hope gas never reaches UK prices, but im sure it will soon enough.

reply posted on 7-4-2005 @ 10:14 AM by Simulacra

In the midst of the worldwide shortage of gas, I would take a note from John Titor and...

Get a bicycle and two sets of spare tires. Ride it 10 miles a week

Regardless of whether there is an American Civil war in 2005, it's just good general advice.

reply posted on 7-4-2005 @ 10:17 AM by mrmulder

I suspect the oil prices will continue to rise. In fact, I'm assuming they will reach $5.00 a gallon by the end of the year. Here's another good article on this subject.

NEW YORK - Christie Baker, owner of Flowers on the Green, recently had to hike the cost of a delivery in Guilford, Conn., from $6 to $8 to make up for the higher cost of gas. In La Jolla, Calif., Domino's just increased the amount it pays delivery drivers by a nickel a trip: They now get 95 cents to transport a large pepperoni, but it's still not enough to cover the cost, says assistant manager Donald Cunningham. And at Meyers Moving & Storage in New York City, they're now charging $15 more an hour to move from an apartment on the East Side to the West. Owner Guy Drori says the rates may go up again come summer.

The hike in oil prices is beginning to ripple through the economy, pinching consumers at places far beyond the gas pump.

During the past year, the robust economy absorbed much of the increase in energy costs. Competition for consumers helped, and kept many businesses from passing along the spike in fuel costs. But with gas prices hovering around new record highs, and the cost of diesel keeping pace, many businesses are finding they can no longer absorb the increased costs. That was reflected last Tuesday in the Producer Price Index, which rose 0.4 percent in February.

FULL ARTICLE

This is becoming a very serious issue that should be considered top priority for our country. If oil prices continue rise, and I believe they will, our economy will colapse.