Gas prices soar!

Houston

Dallas prices remained the state's highest at $2.90 cents per gallon, 9 cents more than last week, while San Antonio had the cheapest gas at $2.76 per gallon, 11 cents more than last week, the survey found.

The national average price was $2.83 per gallon, 11 cents more than last week.

I'm hearing on the news on MSNBC that prices are already $4.00 a gallon in some places. Some gas stations are reporting that they've run out of gas. Many people are cancelling their Memorial Day trips.

This is gonna be a hot summer and with the increase in gas prices comes the inevitable raise in electricity cost. It already cost me $500.00 - $600.00 a month to run my ac. Hope y'all have a lot of fans. I'm glad that I do.

CNN

NEW YORK (CNNMoney.com) - As gasoline prices spiral upward ahead of the high-demand summer season, some traders and consumer advocates are laying at least part of the blame squarely on the doorstep of the federal government.

The switch is happening because lawmakers didn't include liability protections for makers of MTBE, a suspected cancer-causing additive easily soluble in groundwater that has been the subject of several lawsuits, when they enacted an energy bill last August.

So refiners are scrambling to switch to ethanol, a corn-based additive that also makes fuel cleaner burning, which is required in most major metropolitan markets. But with just six months to make the switch, supplies of ethanol and the trucks and rail cars needed to bring it to market are stretched, which has helped push gasoline futures to their highest level in over six months and prices at the pump closer to the $3 a gallon mark.

I've watched gas prices fluctuate for the past year, but this is one of the biggest jumps I've seen since last summer's hurricane season. This information may be true, but as Paul Harvey says, I'd like to know "the rest of the story."

USA TODAY

California on Thursday became the first state in the continental USA to see average gasoline prices go above $3 a gallon in 2006, while the price at the pump in Los Angeles hit an all-time high.

Some regions in Southern California set records Thursday. The average price in the Los Angeles-Long Beach area hit $3.029, the highest price on record. Prices in Orange County, Riverside-San Bernadino, Santa Barbara-Santa Maria-Lompoc and Ventura also broke records.

Another consideration to keep in mind is that as gas prices rise, the cost of shipped goods will rise with it.

On the other side of the country, some gas stations from Virginia to New Hampshire were closing temporarily because their suppliers have to shut down to switch to ethanol blends to meet clean-air rules.

"The situation here is chaotic," said Mike O'Connor, president of the Virginia Petroleum Jobbers Association, which represents gas stations in the state. He said Friday that his association is seeking a federal waiver to allow the sale of lower-grade gasoline to ease the crunch.

It appears that the combination of Oil tops $75 a barrel and the push for gasoline service stations to clean up their act is causing closures of some stations.

The pice per barrel rose as other stocks fell.

The Standard & Poor's 500 Index lost 2.39, or 0.2 percent, to 1309.07 as of 2:44 p.m. in New York after earlier gaining as much as 0.5 percent. The Dow Jones Industrial Average slipped 2.32 to 11,340.57.

Crude oil for June delivery surged to close at $75.21 a barrel in New York, the highest since trading began in 1983 on concern that shipments from Iran and Nigeria will be disrupted.

As gas prices rise, we will see the repecussions as other gas related cost rise with it.

And as the price gos up, so will the profits of the gas companies.

This article is from April 27 last year, but very prophetic. Will we go into a recession, or will we be able to pull out of this with out too much difficulty?

Businessweek Online

In the Goldman Sachs report, analyst Arjun N. Murti says he was surprised that the relatively high price of oil in the past year -- $40 to $60 -- didn't hurt demand or hamper economic growth in the U.S. and China. If high demand and fast growth continue, the report says oil prices would experience a "super-spike," to $75 next year and $105 in 2007. And if a supply disruption occurs, even these prices might be conservative, Murti suggests.

THE REAL PAIN. Baumohl believes that oil prices will go up to such a high level only if supply is severely disrupted. In that case, China's emergency reserves will likely last a mere two weeks. Once China uses them up, factories will shut down, demand for basic commodities like steel, copper, and aluminum will drop precipitously, and the U.S. and world economies will lose momentum.

If the U.S. economy sputters, prices on consumer goods will drop. Many economists, including Zandi and Baumohl, believe that consumer demand for goods will start to slow when oil is still below $100. Baumohl says the economy will feel recessionary pressures at $85. For Zandi, the figure is lower. "Even at $75 to $80 the consumer would pull back, and the economy will be so fragile that it will be near recession," he says.

So you have cause to be concerned about oil reaching the $100 mark. But the real pain will be felt along the journey -- not at the destination.

However, this was written before the trouble with Iran and Nigeria.

From Live Science dated 06 December 2005:

The 2006 forecast calls for:
• 17 named tropical storms; an average season has 9.6.
• 9 hurricanes compared to the average of 5.9.
• 5 major hurricanes with winds exceeding 110 mph; average is 2.3.
Though these statistical predictions cannot portend when any of the storms will form or where they will go, Klotzbach, Gray and colleagues calculate an 81 percent chance that at least one major hurricane will hit the U.S. coast in 2006.

And From Department of Atmospheric Science Colorado State University dated also on 06 December 2005:

PROBABILITIES FOR AT LEAST ONE MAJOR (CATEGORY 3-4-5) HURRICANE LANDFALL ON EACH OF THE FOLLOWING COASTAL AREAS:

1) Entire U.S. coastline - 81% (average for last century is 52%)

2) U.S. East Coast Including Peninsula Florida - 64% (average for last century is 31%)

3) Gulf Coast from the Florida Panhandle westward to Brownsville - 47% (average for last century is 30%)

4) Above-average major hurricane landfall risk in the Caribbean

Hurricane season is only 38 days away. Will the service stations be able to comply with the new fuel additive change over before then or will there still be stations out of gas when we need it most? Will the prices be so high in another month that only the rich will be able to evacuate? Will the cost of shipped goods prohibit last minute shoppers from being prepared to hunker down?

It's three dollars a gallon here in Western North Carolina at several locations, it didn't get that high here after Katrina hit. What's supposedly the cause of the price hike this time? How high do we let them hike the price before we do something about it? What can we do about it? Everything that I've read says this is just the beginning...
gas prices not expected to come down any time soon
Gas Prices Could Jump Higher Monday
No End in Sight to Gas Prices Crisis
$3 a gallon, and we may see higher
Gas prices will worsen before they pull back
"High oil prices could be here to stay"
Price is going up, but in an amazing reversal of the 'laws' of supply and demand...
decreased demand for gas and oil products
Between a gallon of gas and a gallon of milk, that's over $7.00... who the hell can make a living these days?

Converting US Gallons to litres, it would seem we here in the UK are already paying £3.63 a gallon, which is $6.48/gallon!!

Count yourselves lucky, my Yankee friends, for we are being fleeced over here

EDIT: Just to add, the price per litre here is around 96 pence.

[edit on 23/4/06 by stumason]

I saw a guy on the Oreilly factor.......yes I watch it..........that said they expected gas to hit 5-6 dollars a gallon within the next 30-45 days.

Considering how Fox cant pucker up enough for the Bush Admin....I find they saying this kinda scary

The really interesting thing is that gas prices don't HAVE to soar. ExxonMobil's record profits last year prove it.

BOHICA.

And people voted for Bush. TWICE. Amazing.

[edit on 4/23/06 by Tea]

Originally posted by stumason
Converting US Gallons to litres, it would seem we here in the UK are already paying £3.63 a gallon, which is $6.48/gallon!!

Count yourselves lucky, my Yankee friends, for we are being fleeced over here

EDIT: Just to add, the price per litre here is around 96 pence.

[edit on 23/4/06 by stumason]

Here in Montréal, QUébec, it is $1.20 CDN per liter = $4.00 US per gallon.

posted by stumason: “Converting US Gallons to liters, we here in the UK are already paying £3.63 a gallon which is $6.48 a gallon!! Count yourselves lucky for we are being fleeced over here . . the price per liter here is around 96 pence. [Edited by Don W]

Yes but, Stu,
I was under the impression the high European gas prices were due to the European countries putting that money into the General Fund for general governmental purposes. Whereas in the US, we have never done that. All our gas tax money goes to building and maintaining our road systems.

Theory
In round numbers, the US consumes 22 million bbls a day. We produce about 7 million bbls a day. We import about 15 million bbls a day and we have 800 million bbls in what is called our Strategic Reserve. For you old-timers, I hope it is not stored in the Tea Pot Dome oilfield. In any case, oil being fungible, it is hard for the US to allot crude to any refining entity and not see it go the way of all our resources with the likes of VP Cheney and Halliburton standing around. I was thinking if the US could compel our refiners to “charge” their crude at say $50 a bbl regardless of the real price, and we supplied them with say 5-6 million bbls a day, for say, 30 days, that should give time for the market to revert to a more convenient and comfortable price. Or are we poor and simple mortals left to the vagaries of Adam Smith altogether? Unable to help ourselves?

[edit on 4/23/2006 by donwhite]

Originally posted by donwhite

Whereas in the US, we have never done that. All our gas tax money goes to building and maintaining our road systems.

I just about pooped myself when I read this line. While it's true that the ching is earmarked for roads, you wouldn't know it in my neck of the woods.

Some roads here are a disaster. Others, that look to be in pretty darn good shape in comparison, get torn up and repoured. WTF.

I've given up trying to understand the logic involved or figuring out where all our money is really going.

I'm glad I'm an old gnastard. I can't stand to watch what is happening to my country. Death will be a blessing.

The big reality is that we will be hit not only with the prices on gas but like a chain reaction it will include anything that is link to gas use.

Inflation is what is called.

But the irony is that as we the consumer keep out mouth shut and pay the prices is not going to be any change.

Complain to our political leaders in congress and you see how fast things will get better because election in November.

I imagine that the gas hype is due to the fact that congress may change hands and then things may change for the corporate America that has been doing very well under the present administration.

[edit on 23-4-2006 by marg6043]

A good idea to fight this. Don't buy EXXON.

>> >This was originally sent by a retired Coca Cola
>> >executive. It came from one of his engineer buddies
>> >who retired from Halliburton. It's worth your
>> >consideration.
>> >
>> >Join the resistance!!!! I hear we are going to hit
>> >close to $ 4.00 a gallon by next summer and it might
>> >go higher!! Want gasoline prices to come down? We
>> >need to take some intelligent, united action.
>> >
>> >Phillip Hollsworth offered this good idea. This makes
>> >MUCH MORE SENSE than the "don't buy gas on a certain
day"
>> >campaign that was going around last April or May!
>> >The oil companies just laughed at that because they
>> >knew we wouldn't continue to "hurt" ourselves by
>> >refusing to buy gas. It was more of an inconvenience
>> >to us than it was a problem for them. BUT, whoever
>> >thought of this idea, has come up with a plan that can
>> >really work. Please read on and join with us!
>> >
>> >By now you're probably thinking gasoline priced at
>> >about $1.50 is super cheap. Me too! It is currently
>> >$2.79 for regular unleaded in my town. Now that the
>> >oil companies and the OPEC nations have conditioned us
>> >to think that the cost of a gallon of gas is CHEAP at
>> >$1.50 - $1.75, we need to take aggressive action to
>> >teach them that BUYERS control the marketplace..not
>> >sellers. With the price of gasoline going up more each
>> >day, we consumers need to take action. The only way we
>> >are going to see the price of gas come down is if we
>> >hit someone in the pocketbook by not purchasing their
>> >gas! And, we can do that WITHOUT hurting ourselves.
>> >How?
>> >
>> >Since we all rely on our cars, we can't just stop
>> >buying gas. But we CAN have an impact on gas prices if
>> >we all act together to force a price war.
>> >
>> >Here's the idea: For the rest of this year, DON'T
>> >purchase ANY gasoline from the two biggest companies
>> >EXXON and MOBIL. If they are not
>> >selling any gas, they will be inclined to reduce their
>> >prices. If they reduce their prices, the other
>> >companies will have to follow suit. But to have an
>> >impact, we need to reach literally millions of Exxon
>> >and Mobil gas buyers. It's really simple to do! Now,
>> >don't wimp out on me at this point...keep reading and
>> >I'll explain how simple it is to reach millions of
>> >people!!
>> >
>> >I am sending this note to 30 people. If each of us
>> >send it to at least ten more (30 x 10 = 300) ... and
>> >those 300 send it to at least ten more (300 x 10 >>
>3,000)...and so on, by the time the message reaches
>> >the sixth group of people, we will have reached over
>> >THREE MILLION consumers.
>> >
>> >If those three million get excited and pass this on to
>> >ten friends each, then 30 million people will have
>> >been contacted! If it goes one level further, you
>> >guessed it..... THREE HUNDRED MILLION PEOPLE!!!
>> >
>> >Again, all you have to do is send this to 10 people.
>> >That's all! How long would all that take? If each of
us sends
>> >this e-mail out to ten more people within one day of
>> >receipt, all 300 MILLION people could conceivably be
>> >contacted within the next 8 days!!! I'll bet you
>> >didn't think you and I had that much potential, did
>> >you! Acting together we can make a difference.
>> >
>> >If this makes sense to you, please pass this message
>> >on. I urge you to NOT BUY FROM Exxon/Mobil UNTIL
>> >THEY LOWER THEIR PRICES TO THE $1.30 RANGE
>> >AND KEEP THEM DOWN. THIS CAN REALLY WORK!!!

darkhero -

There is one thing missing from your article which would benefit all members here who do not follow the financial market. You should post a list of gas stations, by chain, where the membership may purchase gas that is not produced or supplied by Exxon.

posted by darkhero: “A good idea to fight this. Don't buy EXXON. This was originally sent by a retired Coca Cola executive. It came from one of his engineer buddies who retired from Halliburton. I urge you NOT TO BUY FROM Exxon/Mobil UNTIL THEY LOWER THEIR PRICES TO THE $1.30 RANGE AND KEEP THEM DOWN. THIS CAN REALLY WORK! [Edited by Don W]

There are 42 gallons in a “oil” barrel. The average state and Federal gas tax is 65 cents a gallon to build and maintain the world’s best road system. Back when gas was $1.30 a gallon - not all the long ago - the gas tax was lower. But at today’s prices - $72 a barrel - working backwards, that comes to $30 a barrel. I suspect our governing persons regard the higher prices as desirable for the geopolitical situation. Only the rich can afford this energy and that give the rich more control over the poor. In a power game, that is what counts most. Control.

ExxonMobil is like Wal-Mart - smartest kids on the block. We have sat by idly for 40 years and watched enterprise sucked up in mergers. When a company wants to enter a new market in the old days, they would design a better mousetrap and put it out for sale. Competition we used to call that. No more. Now any company - look at Mercedes Benz for example - that wants to get into a market buy in or merge - who can tell the difference without a C.P.A.? - “acquires” an existing company and Viola! overnight you are in the market! And with one fewer competitors!

Nope, folks, the Republicans have killed the competition that the New Deal brought to America. Bad mouthing government for 50 yeasts begins to work. Thank you Richard Nixon, thank you Ronald Reagan, Thank you Geo W. You destroyed the Federal Trade Commission, the Federal Power Commission, and the laws necessary to support competition in America You killed the system that laid to golen egg, with the help of loyal “faith-based” Republican voters. Yes, everything is political.

[edit on 4/23/2006 by donwhite]

Boycott Exxon, good idea, will never work though.
Barely half the country turned out to vote for the most important job in the country. This would work but it would take 2 to 3 days of boycotting to work. Don't think everyone could do that for that long. How about not buying any gas at all on a certain day. Wake them all up. No profit, no side sales, no taxes, millions of dollars worth of business gone.

Originally posted by stumason

$6.48/gallon!!

Count yourselves lucky, my Yankee friends, for we are being fleeced over here

[edit on 23/4/06 by stumason]

Wow, Thats a budget buster for sure!
I know that us yankees should feel lucky..And I do, somewhat..
But I think what bothers us most, is the volatility.
It's the change in how household monies are distrubuted..
It's really hard to keep up..

I filled my tank last about 4 days ago..prices was 2.89 per gallon American.
Today, at the same station, the price is 3.19..
Suddenly my truck is worth a lot more! It was like an investment.
Anyone buying? I have a siphon..LOL


stumason,
Just for perspective, how much have your prices changed, in the last month or so? Are you guys suffering from the same volatility?

Originally posted by Tea
The really interesting thing is that gas prices don't HAVE to soar. ExxonMobil's record profits last year prove it.

BOHICA.

And people voted for Bush. TWICE. Amazing.

[edit on 4/23/06 by Tea]

People who blather about "record profits" without mentioning PROFIT MARGINS are either deceitful or ignorant. Which are you?

There were "record profits" in raw unadjusted dollars only. Do you know what their profit margins were? Do you know what a profit margin is? No? Then maybe you'd better find out before you run you mouth about issues you know nothing about.

Most oil companies make fairly small margins. If I told you my company made a proft of a million dollars, would you consider that great? Well, without know how much I spent to earn that million, there's no telling.

[edit on 23-4-2006 by El Tiante]

[edit on 23-4-2006 by El Tiante]