Gas Prices

[PastorMikH]

Originally Posted by Saulwhippedguy

Whats everyone take on this?'

I think it is possible that we could see crude prices drop. However, now that the greedy oil companies have pushed the price up, I seriously doubt we will see gas prices drop below $2 a gallon - and they were well under $2 a gallon the last time the price per barrel was that low

[Skip Towne]

Originally Posted by PastorMikH

I think it is possible that we could see crude prices drop. However, now that the greedy oil companies have pushed the price up, I seriously doubt we will see gas prices drop below $2 a gallon - and they were well under $2 a gallon the last time the price per barrel was that low

I think you're right and I also think the oil industry should be declared a public utility and it's pricing subject to approval of the FCC. It keeps the electric and gas companies from doing exactly what the oil industry is doing. Remember, the Sherman Anti-Trust Act was passed to break up Standard Oil. Oil companies have gouged us for decades. Enough, I say!!

[Skip Towne]

THIS JUST IN!! Watching the 10 O'clock news, gasoline has gone up another 10 cents to $2.79. Criminal!!

[mnchiefsguy]

I think you're right and I also think the oil industry should be declared a public utility and it's pricing subject to approval of the FCC. It keeps the electric and gas companies from doing exactly what the oil industry is doing. Remember, the Sherman Anti-Trust Act was passed to break up Standard Oil. Oil companies have gouged us for decades. Enough, I say!!

I was just thinking this the other day, and my coworkers thought I was nuts! Glad to see see other people are thinking the same thing....

[Fairplay]

Originally Posted by Skip Towne

THIS JUST IN!! Watching the 10 O'clock news, gasoline has gone up another 10 cents to $2.79. Criminal!!

Thats it, im cutting my gardening hose and make real use of it.

[Calcountry]

Originally Posted by Skip Towne

I think you're right and I also think the oil industry should be declared a public utility and it's pricing subject to approval of the FCC. It keeps the electric and gas companies from doing exactly what the oil industry is doing. Remember, the Sherman Anti-Trust Act was passed to break up Standard Oil. Oil companies have gouged us for decades. Enough, I say!!

Yes, the boys at the Communications commission should be regulating the oil industry Clevis.

[KingPriest2]

Originally Posted by Saulwhippedguy

Whats everyone take on this?

http://www.forbes.com/business/feeds...fx2195813.html

Oil price bubble about to burst, says business guru Forbes
08.30.2005, 05:20 AM

SYDNEY (AFX) - Oil prices are set to crash from this week's record highs as a speculative market bubble bursts with an impact that could make the hi-tech bust of 2000 'look like a picnic', business publisher Steve Forbes has predicted.

Forbes said the high oil prices currently dampening the US economy, which peaked at more than 70 usd a barrel yesterday as Hurricane Katrina headed for the US Gulf Coast, would fall to 30-35 usd a barrel within a year.

'I'll make a bold prediction... in 12 months, you're going to see oil down to 35-40 usd a barrel,' he said, according to Agence France-Presse.

'It's a huge bubble, I don't know what's going to pop it but eventually it will pop -- you cannot go against supply and demand, you cannot go against the fundamentals forever.'

The billionaire magazine publisher's comments came as the price of crude eased following US government comments that it could release some of its Strategic Petroleum Reserve (SPR).

The SPR, a 700-mln-barrel stockpile set aside for emergency use, could be used to counter oil shortages caused by Hurricane Katrina's devastation of the Gulf oil industry, which accounts for about a quarter of US output.

Forbes, who unsuccessfully sought Republican nomination in the 1996 and 2000 US Presidential elections, said the US government's constant topping up of the SPR had helped drive up oil prices.

'The speculators know now that no matter what happens to the price of oil, Uncle Sam is there buying almost every day,' he said.

'Stop the buying and in fact throw some of that oil on the open market, boy that would throw it in turmoil and send the price down.'

He said factors such as inflation and increased demand for oil from China and India only accounted for a small part of the price hike from 25-30 usd a barrel three years ago.

'The rest of it is sheer bubble speculation,' Forbes said.

'I'll be blunt, there's hardly a hedge fund in North America that hasn't speculated on oil futures.'

Forbes said the higher the oil price rose, the harder it would eventually crash, creating more pain for hedge fund managers and their clients.

'I don't think it's going to go to 100 usd but if it does the crash is going to be even more spectacular,' he said. 'It will make the hi-tech bubble look like a picnic -- this thing is not going to last.'

Expert: $4 a gallon gasoline coming soon
Pricing analyst says consumers can expect even higher prices at the pump.
August 31, 2005: 10:40 AM EDT
By Grace Wong, CNN/Money staff writer

Special Report full coverage


Oil retreats under $70

White House to tap reserves

Expert: $4 a gallon gasoline coming soon

Gas crisis looms





QUICK VOTE
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Video More video


CNN's Allan Chernoff discusses Hurricane Katrina's effect on oil and gas prices. (August 30)
Play video




NEW YORK (CNN/Money) - Consumers can expect retail gas prices to rise to $4 a gallon in the near future, a pricing analyst said Wednesday.

"There's no question gas will hit $4 a gallon," Ben Brockwell, director of pricing at the Oil Price Information Service, said. "The question is how high will it go and how long will it last?"

OPIS tracks wholesale and retail oil prices and provides pricing information for AAA's daily reports on fuel prices.

Brockwell said with gasoline prices now exceeding $3 a gallon before even reaching the wholesale level, it "doesn't take a genius" to expect retail prices to hit $4 a gallon soon.

"Consumers haven't seen the worst of it yet," Brockwell said.

He expects consumers in the Southeast and Northeast to be pinched first, following the impact of Hurricane Katrina on the Gulf Coast region.

Katrina forced operators to close more than a tenth of the country's refining capacity and a quarter of its oil production, which sent gasoline prices surging.

The nationwide average price for a gallon of regular unleaded hit a fresh high of $2.619 Wednesday, according to AAA, the largest U.S. motorist organization, formerly known as the American Automobile Association.

Average gasoline prices have gained 40 percent in the last year.

Prices for crude oil are also up sharply and are currently hovering near record highs just under $70 a barrel.

[KingPriest2]

It is 3.50 up in Grand Haven MIchigan

[TEX]

He expects consumers in the Southeast and Northeast to be pinched first, following the impact of Hurricane Katrina on the Gulf Coast region.

Katrina forced operators to close more than a tenth of the country's refining capacity and a quarter of its oil production, which sent gasoline prices surging.

And the excuses continue. I'm sure this caused major problems but it never used to when storms hit before. The deal is once they go up - they won't come down to anywhere near where they are now. We'll all be praying for $2.75 a gallon in the future and looking at it as a good thing.

That's when the puppet in the White House can say to his oil buddies,"Mission Accomplished."

[Donger]

Interesting Saul. I read a few months ago that another major player was predicting a burst.

It depends, I suppose, on demand lessening significantly (which I doubt will happen) and then the speculation stopping or slowing significantly.

I'd bet that we'll see $75 by Labor Day, and then a drop to around $55-60 thereafter. The next few weeks to a month are going to suck, however.

Then again, crude has doubled in less than a year. A lot of that IS pure speculation. Let's hope so.

[Calcountry]

Originally Posted by Donger

Interesting Saul. I read a few months ago that another major player was predicting a burst.

It depends, I suppose, on demand lessening significantly (which I doubt will happen) and then the speculation stopping or slowing significantly.

I'd bet that we'll see $75 by Labor Day, and then a drop to around $55-60 thereafter. The next few weeks to a month are going to suck, however.

Then again, crude has doubled in less than a year. A lot of that IS pure speculation. Let's hope so.

I am thinking of selling my VLO a few days before Labor Day.

[Skip Towne]

Originally Posted by bunnytrdr

I am thinking of selling my VLO a few days before Labor Day.

Good move, Claude.

[Rausch]

Originally Posted by Skip Towne

Good move, Claude.

Careful with that axe Eugene...

[Calcountry]

Originally Posted by Skip Towne

Good move, Claude.

Why thank you Mr. Clampet.

[jspchief]

Just thought I'd let Skip know that while wholesale prices may have dropped 3 cents two days ago, they went up 55 cents yesterday.