Will gasoline hit $6.00 or more a gallon?

[thetopdog]

I've seen premium for $4.99 multiple places in LA. And "premium" here is only 91 octane

[feels_road]

It's $4.40, $4.70, and $4.90 for the least expensive premium brand Diesel, regular, and premium here, today. Love my TDI.

[Sporin]

We ticked down another 10 cents a gallon here in Vermont ($3.7X)... glad to see other states aren't using California's local pinch as an excuse to raise everyone's prices (which is what I expected them to do).

[GoRacers]

I honestly couldn't tell you what gas costs here right now. I haven't looked at the price in a couple years. It doesn't matter. I need gas, I pull into a Shell station and buy it. Gas is part of the cost of living.

For what it's worth, I'm shopping around to trade my hybrid on a 5.0 v8 car.

[MCTB]

I know, diesel went from 4.35 to 4.37 overnight

Its times like these that i'm glad i have diesel.

Hold on. So the price per gallon went up 2 cents last night and youre happy you have a diesel? When youre paying, on average of this thread, 50 to 60 cents more per gallon than someone using regular, youre really not saving having a diesel.

[FlybyGLI]

I live in MN where the price has bounced around anywhere from $2.80-$4.00 in the past year. Personally, I think in some states/areas where the cost of living is higher, gas prices could certainly hit $6/gallon because it would be far more socially acceptable than gas hitting $6/gallon in areas that have a low cost of living. However, I do believe there will come a time when gas becomes so expensive, that some people will simply not be able to afford to drive to work or school. For single parent families commuting, its not crazy to think they might spend $5,000-$6,000 a year in fuel. I know all the wealthy car lounge folks here probably don't have a problem with that, but for a young single person such as myself with an average job, after rent, car payment and food, there's not much left.

Hopefully it never comes to that, but I foresee some serious economic issues brewing around fuel costs.

[unleashedd]

are americans moving back into apartments in cities/closer to work? or is the "american dream" (read endless debt) still fueling suburban sprawl? gas prices will keep going up since u dont have an economy capable of backing up gas price reduction

[Seabird]

...an economy capable of backing up gas price reduction

Can you please explain what this means? I don't follow.

[MAC]

They are training us like dogs. Next time they need a quarterly boost in revenue - bam, sudden increase for a couple of weeks. And no one will be shocked.

Yep. You might not like being in the crate all day but eventually you'll learn to accept it without bitching.

[unleashedd]

Can you please explain what this means? I don't follow.

what can america offer in exchange for cheaper energy? why would oil companies lower gas prices when the demand is still high as hell? a growing economy would at least show potential for profits in the long run, so lowering of energy prices would be justifiable.

[Seabird]

what can america offer in exchange for cheaper energy? why would oil companies lower gas prices when the demand is still high as hell? a growing economy would at least show potential for profits in the long run, so lowering of energy prices would be justifiable.

So, are you saying that a recessionary or stagnant economy results in high demand? And that a growing economy would result in lower demand?

[romanl]

ill tell you this much
when was hurricane catrina? 2005?
well back then i lived in New York, was driving 2003 Chevy Impala
and due to all the refineries being shut down by the hurricane
i paid $6.00 (few cents over, dont remember exact amount) back in 2005.
yes it only lasted for a week or two, but if $6 was possible back in 2005, then it wont be anything new today.

just checked my FUELLY
i bought my '10 GOLF TDI in June 2010
the lowest i paid for D2 was $2.99 in July 2010
the highers was $4.69 in April 2011 $6 is not that far off

[ValveCoverGasket]

why would oil companies lower gas prices when the demand is still high as hell?

us oil demand has actually been dropping the past couple of years (read: huuge recession)

[Air-over-water]

Highest I saw for 93 this morning was $3.79.
89 is around $3.47

[unleashedd]

does recession = lower demand? if so, has anything gotten cheaper???? why would price of any commodity not follow the supply-demand principle?

[SwampBuggie]

France, that is, not Texas.

http://www.testosteronepit.com/home/...-in-paris.html

[Sporin]

does recession = lower demand? if so, has anything gotten cheaper???? why would price of any commodity not follow the supply-demand principle?

Because the supply is controlled by a cartel (collusion, manipulation) and exploited by commodity traders.

Standard "supply and demand" rules simply do not apply to oil. There is an excess of oil on the market right now (has been for quite some time), yet prices are at historic highs.

[MCTB]

Because the supply is controlled by a cartel (collusion, manipulation) and exploited by commodity traders.

Standard "supply and demand" rules simply do not apply to oil. There is an excess of oil on the market right now (has been for quite some time), yet prices are at historic highs.

Exactly. In terms of oil, supply and demand can be manufactured. In a recession, the demand for goods and services drops. Oil does not fall into that category.

[Seabird]

does recession = lower demand? if so, has anything gotten cheaper???? why would price of any commodity not follow the supply-demand principle?

I think I see a contradiction in your statement. The Law of Supply and Demand dictates that prices rise with demand. What gets missed is when supplies fall, prices also rise. That's the simple definition.

The US, and CA most acutely, is currently having supply issues with gasoline. The reasons for which I won't debate because I'm just plain tired of arguing with the tinfoil crowd. What we can agree on is a lack of supply, either through refinery issues and regulation, or a perceived lack of supply through corporate evil-doer machinations.

Right now the volatility of gasoline prices isn't really correlated to crude oil, like it was in 2008-2010. In 2008, WTIC prices peaked at $145/ barrel. The average price of gasoline at that time was about $4/ gallon.

Today, the price of crude is about $93 while, nationally, gas prices are just under that record average of 2008.

I can promise you this. The commodity prices for oil and gas aren't going to drop in a thriving, high growth, high demand economy.

[SwampBuggie]

Personally, I think in some states/areas where the cost of living is higher, gas prices could certainly hit $6/gallon because it would be far more socially acceptable than gas hitting $6/gallon in areas that have a low cost of living. However, I do believe there will come a time when gas becomes so expensive, that some people will simply not be able to afford to drive to work or school.

Hopefully it never comes to that, but I foresee some serious economic issues brewing around fuel costs.

Actually when there was that price spike in the summer of 2008 (i.e., when West Texas Intermediate @ Cushing, OK hit $145/bbl) when employees in rural MS & AL stopped showing up for work because the price of gas to drive to work made it not worth going to their jobs (the employers had to arrange a bus to pick them up.) Of course, these folks, making wage and commuting long distances (and typically in gas guzzling beater cars), were the most sensitive to the price of gasoline - but yes eventually the high price of gasoline will force prices for a lot of things higher, causing bug disruptions.

[ValveCoverGasket]

does recession = lower demand? if so, has anything gotten cheaper???? why would price of any commodity not follow the supply-demand principle?

i said US demand was lower but im not sure that thats the case wordwide... and as we know this is a global commodity and isnt just priced here based on our own demand of it. (something that the Drill Here, Drill Now idiots fail to realize...)

[surefooted]

Last time I was in Helsinki, gas was 1.65 € a liter which is about 6.25 € a gallon. That's about 8.05 USD a gallon. People in the US are spoiled and have no idea what things really cost.

[cryption]

I always figured its a corporate conspiracy. We are paying more for gas now at $100 a barrel then we were paying at $140 a barrel - and oil companies are seeing great profit margins. There is more to it than the government. It's all about the oil companies controlling prices

[Seabird]

Last time I was in Helsinki, gas was 1.65 € a liter which is about 6.25 € a gallon. That's about 8.05 USD a gallon. People in the US are spoiled and have no idea what things really cost.

This argument always inevitably gets made in these threads and I never understood why. What makes Finland the benchmark for any household costs compared to the US or the rest of the world?

[Sporin]

The US, and CA most acutely, is currently having supply issues with gasoline.

CA sure, but isn't the US is a net exporter of gasoline now? AFAIK there is no supply issue nationally.

[MCTB]

i said US demand was lower but im not sure that thats the case wordwide... and as we know this is a global commodity and isnt just priced here based on our own demand of it. (something that the Drill Here, Drill Now idiots fail to realize...)

What?? You mean we arent the only country on earth with cars?



China is growing to demand more fuel that we are. Their emerging middle class is HUGE

[Seabird]

CA sure, but isn't the US is a net exporter of gasoline now? AFAIK there is no supply issue nationally.

Last year, yes, but I'm not sure about this year. I'm not saying no, I'm saying that I don't know. I haven't seen recent data on it. I wasn't referring to, or trying to imply that there is, a major national disruption. Just the standard seasonal cycle of switching to the winter blend and the very complex logistical reroutes of refined product to the West Coast. There have also been some recent plant shutdowns on the eastern seaboard that created price pressures on the downstream market.

I am trying really hard not to get into the technical details because that's when I have to endure the trolls who want to attack me for being some kind of Big Oil Insider. I'm so tired of those fights. That's why I'm not responding to the crazy stuff being posted right now.

[bubbagti]

does recession = lower demand? if so, has anything gotten cheaper????

Have you looked at housing prices over the past couple of years?

[Brett92]

People in the US are spoiled and have no idea what things really cost.

I never understand this claim. Sure, our gas is cheap because there's little taxes on it. I think if you strip taxes from it, both sides are probably close to being equal.


With that said, my wife and I pay $400 a month for health insurance. I would never say "people in Finland are spoiled because their healthcare is free".

[Sporin]

Last year, yes, but I'm not sure about this year. I'm not saying no, I'm saying that I don't know. I haven't seen recent data on it. I wasn't referring to, or trying to imply that there is, a major national disruption. Just the standard seasonal cycle of switching to the winter blend and the very complex logistical reroutes of refined product to the West Coast. There have also been some recent plant shutdowns on the eastern seaboard that created price pressures on the downstream market.

I am trying really hard not to get into the technical details because that's when I have to endure the trolls who want to attack me for being some kind of Big Oil Insider. I'm so tired of those fights. That's why I'm not responding to the crazy stuff being posted right now.

Understood.

[phil123]

Hold on. So the price per gallon went up 2 cents last night and youre happy you have a diesel? When youre paying, on average of this thread, 50 to 60 cents more per gallon than someone using regular, youre really not saving having a diesel.

Yup, go look up the average in california.

[deagle]

California takes wraps off dirtier, "winter" gasoline to ease prices

http://green.autoblog.com/2012/10/09...e-ease-prices/

[surefooted]

This argument always inevitably gets made in these threads and I never understood why. What makes Finland the benchmark for any household costs compared to the US or the rest of the world?

Since Americans want everything the EU has like universal health care...wait wrong topic.

Choose any EU country and their gas will be higher. The only western countries with low gas prices are the US and Canada.

[surefooted]

I never understand this claim. Sure, our gas is cheap because there's little taxes on it. I think if you strip taxes from it, both sides are probably close to being equal.


With that said, my wife and I pay $400 a month for health insurance. I would never say "people in Finland are spoiled because their healthcare is free".

oh I know full weel about the EU's taxes on gas. Just making saying that gas is still cheap.

[VadGTI]

My fill-up this morning, Hollywood (as can be seen by blurry Hollywood sign in background). This is for Premium, which is 91.