Glad I don't own a car

wondergirl9847 · #1 03-04-2005, 12:28 PM

Gas prices might increase 24 cents

Fri Mar 4, 6:19 AM ET Business - USATODAY.com
By James R. Healey, USA TODAY

Gasoline prices could rocket 24 cents a gallon the next few days, as stations across the USA scramble to keep up with big jumps in the prices of oil and wholesale gas, a veteran energy-price analyst forecast Thursday.

"It's going to be brutal, horrendous," says Peter Beutel, president of energy-price tracker Cameron Hanover. He has followed energy markets for nearly three decades.

Thursday, light, sweet crude oil for April delivery traded as high as $55.20 a barrel in New York before closing at $53.57.

A 24-cent jump in the price of gas would bump unleaded regular to a nationwide average of about $2.16 a gallon, blowing through last May's record of about $2.06. It could go higher as increased warm-weather driving in another two months pushes up demand, and therefore prices, forecasters say.

Adjusted for inflation, gas would have to hit about $2.95 for a record.

The price increase translates to "$90 million a day, every day that it remains in effect," which could be several months, Beutel says.

"Petronoia is in full flower. Retail gasoline has some 25 to 28 cents a gallon in increases ahead just to catch up to what has happened with wholesale (gas prices) since Christmas week," says Tom Kloza, senior analyst at the Oil Price Information Service. He foresees a record-breaking peak but not until the last half of this month. "What I can't determine is whether that level will last, like it did last year" or drop back as refineries ramp up gasoline production.

Petronoia is Kloza's description of when petroleum traders become irrationally afraid there won't be enough oil and gasoline later, so they buy now, bidding up prices.

The government's short-term-energy-price expert thinks the analysts are overreacting. Oil and wholesale gas prices have increased a lot, agrees Michael Burdette, senior analyst at the U.S. Energy Information Administration, but it takes about eight weeks for those changes to be completely reflected in pump prices. "In the next eight weeks, (wholesale gas) prices will change, so it's a moving target." At worst, he sees a dime jump in the near future.

Seasonal maintenance and other disruptions had U.S. refineries operating at just 89.3% capacity last week, lowest in four months, making traders jumpy about supplies.

The U.S. dollar has fallen in value recently, also, and foreign oil sellers, who control most supplies, want more dollars per barrel to compensate.

Those factors outweigh the U.S. government's midweek report showing ample supplies. U.S. inventories of crude oil, from which gasoline is made, were up a hefty 8.6% from a year ago and up 0.8% from the previous week. Supplies of gasoline were up 10.1% from a year ago, and even with a week ago.

skcin · #2 03-04-2005, 12:36 PM

This sucks.

Not a lot I can do about it, though. I'll just keep paying & driving.

BTW - what's gas right now for everyone else? It's about $1.97 here.

ontheEdgeof17 · #3 03-04-2005, 12:38 PM

Quote:

Originally Posted by skcin

BTW - what's gas right now for everyone else? It's about $1.97 here.

$1.94

It's a $1.70 in VA.

wondergirl9847 · #4 03-04-2005, 12:43 PM

It's $1.79 or so on average. Sheesh, what do they want, friggin' blood?

HomerMcvie · #5 03-04-2005, 01:12 PM

It jumped from $1.89 to $2.09 yesterday!!!!!!!!!!! I think that's the record high.
I was wanting to trade my SUV for a newer one this year, but I'm seriously considering keeping this one for bad weather, and buying a Honda or Toyota for all other use.
But I also own a U-haul that gets 5.5 mpg. I almost can't afford to take any jobs out of town anymore. $60 for one tank of gas!

GardenStateGirlie · #6 03-04-2005, 01:22 PM

I just told my dad. He hadn't heard yet and usually he knows everything a while in advance. He's pissed. I mean, really really pissed. We own a gas station and he ends up putting out more money to buy and doesn't make a lot off of it. I don't know if you guys are aware of this either but here in the state of NJ, when you buy diesel fuel, your taxed by the federal government and then partially by the state. At the end of the month, the state of NJ makes you fill out paperwork that you must send to them and they end up getting .13 1/2 cents per gallon--it's paid directly to the state of NJ. There's a lot of other things that make absolutely no sense that goes on that if I got him on here, he'd rage about that most people probably aren't aware of.

Merf · #7 03-04-2005, 01:45 PM

It's as low as 1.76 here....

Nixxxed · #8 03-04-2005, 01:47 PM

There are reports that OPEC forecasts oil at $80 per barrel before summer.

And if Dubya bombs Iran (or talks Israel into doing so), you'd better buy a bike or a good pair of walking shoes.

DrummerDeanna · #9 03-04-2005, 01:48 PM

It's about $1.94-$.2.05 here.....

Well - that is sucky news - but luckily Spring is almost here and my bike is being shipped to me soon....

I have actually tried as of late to cut down on my driving - like if I don't need to go somewhere I just don't - gas is expensive....and apparently about to get even more expensive

HomerMcvie · #10 03-04-2005, 02:08 PM

What are your opinions on the best mileage car? Honda? Toyota? Mileage and reliability/maintenance are my main concerns.
I've been driving SUVs for 15 years now. I LOVE to travel, so gas prices are now becoming a major issue for me. I feel it's time to downsize(don't want to, though

).

amber · #11 03-04-2005, 02:10 PM

Quote:

Originally Posted by skcin

This sucks.

Not a lot I can do about it, though. I'll just keep paying & driving.

BTW - what's gas right now for everyone else? It's about $1.97 here.

Apparently someone in the office who has a car saw it for 2.31 this morning.
I still wish I had a car, but if I could get a new one, I'd sooooooooooo get a hybrid.

dissention · #12 03-04-2005, 02:12 PM

Quote:

Originally Posted by amber

Apparently someone in the office who has a car saw it for 2.31 this morning.
I still wish I had a car, but if I could get a new one, I'd sooooooooooo get a hybrid.

Good luck! I've been on a waiting list for a little over a year for a Honda hybrid.

wondergirl9847 · #13 03-04-2005, 02:14 PM

http://www.wnbiodiesel.com/products.html

Willie Nelson's bus uses this stuff...perhaps, this is the future?

amber · #14 03-04-2005, 02:18 PM

Quote:

Originally Posted by dissention

Good luck! I've been on a waiting list for a little over a year for a Honda hybrid.

really? well, that's good news that a lot of people want them..

I thought you had a newish car already?

I probably won't be able to afford one until they really kick ass anyway!

SuzeQuze · #15 03-04-2005, 02:19 PM

Quote:

Originally Posted by dissention

Good luck! I've been on a waiting list for a little over a year for a Honda hybrid.

Okay, what the hell? If the demand is that high, increase the supply! Ugh. If they make a convertible hybrid I'll buy it.

I'm itching for a convertible for my next car.