Oil's surge in 2010 paves the way for $4 gasoline

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NEW YORK (AP) -- The price of oil is poised for another run at $100 a barrel after a global economic rebound sent it surging 34 percent since May. That could push gasoline prices to $4 a gallon by summer in some parts of the country, experts say.

Flying, shipping a package and ordering a pizza all likely would get more expensive in the new year if that happens and companies pass along higher energy costs. Some economists say rising energy prices will slow economic growth.

"There's nothing this industry can't survive," Oppenheimer & Co. analyst Fadel Gheit said.

John Hofmeister, former president of Shell Oil and author of "Why We Hate The Oil Companies," predicts Americans will pay $5 per gallon for gasoline by 2012. Other experts say that's a long shot.

Cant say I didnt see a price increase coming. Im guessing the oil companies are going to be making record profits this year. I wonder how this is going to affect the economy?

Still, if gas does rise to $4 here in the US, it could be alot worse. Some countries pay more than double what we do now.

reply to post by buni11687


Yes, and the Amercian economy, along with the common working people will slip further into the Abyss.

These speculative energy hikes with their destructive human consequences are by design.

i don't know why americans are complaining. in canuckistan, that supposedly has the second largest oil reserve in the world are currently paying $1.16 a litre.

$1.16 x 3.78 (1 u.s. gallon) = $4.38 cents. the canuckistan monopoly money is currently at or near par with the american dollar.

saudi arabia, iran, venezuela and all the other top oil producers give their citizens dirt cheap gasoline, since the oil is a natural reserve that belongs to all the citizens of the country.

not in canuckistan, they should be paying at the most $0.25 a litre. but since exxon and shell have bought off canuckistan politicians and that the people of canuckistan are useless idiots, not to mention full of petty, bitter, greedy elites means that the average citizen of canuckistan are constantly getting their pockets picked.

the great visionary, pierre elliot trudeau, former prime minister of canada, set up petro canada to protect canadian interests against greedy american oil companies after the oilsands in alberta.

this crown corporation was a safe guard against price-fixing and gasoline monopolies. petro canada could have offered canuckistans competitive gas prices forcing shell and exxon to do the same.

guess what, greedy canuckistan politicians were bought off and sold petro canada massively undervalued to puppet owners controlled by greedy american oil companies.

canuckistans only oil safe guard pimped out like a crack whore, hence $1.16 a litre gasoline instead of $0.25 a litre gasoline.

know you know why most of the world hates america.

canuckistan?

?

LMAO!

Canuckistan?

Anyhow, airlines, freight, fleet don't pay as much for fuel as retail / consumer prices and the relationship between production cost / wholesale / retail isn't linear so it doesn't affect wholesale customers as much as it does the consumer at the drive-up pump. Therefore, freight and airlines won't suffer as much of a hit as those that drive a car... not to mention jet fuel isn't gasoline either so there's not a direct relationship to be made there, although from the hub to the door does require fuel, albeit purchased at wholesale, not retail pricing.

As for pizza, if the cost of product goes up due to shipping/delivery charges, most outlets will increase the quantities of long-lived goods ordered (canned sauces, packaged flour, etc), order more per delivery, so it doesn't need delivered as often which will somewhat offset the cost of fuel.