Spring could bring $4 gallons of gas to the U.S.
Well, with the $100 price limit on a barrel of oil broken last week (if only for a minute and then most likely by one guy with an inferiority complex), this is as good a time as any to prepare Americans for the possibility of $4 gallons of gas come springtime. That's what Atlanta Journal-Constitution writer Michael Kanell has done with this article, and he breaks down the reasons why - even though the $100 price was only briefly reached - gas prices don't look to be coming down any time soon. Regular readers (and anyone with some common sense) can figure out why: demand for oil continues to rise while getting the stuff out of the ground gets harder and more expensive. Oil isn't like diamonds, after all, and we certainly seem to be running out of the stuff. Even though gas prices won't necessarily march methodically up to $4 a gallon (there could be dips, Kanell writes), "gas prices will almost certainly keep rising - but perhaps not dramatically, since demand for gasoline in winter is generally at an ebb." So, come spring and the start of the typical busy season for driving, get ready for sticker shock at the pump. Even with this warning, I'm sure the shock will be unavoidable.
[Source: Atlanta Journal-Constitution]
Reader Comments (Page 1 of 1)
Dad 5:57PM (1/05/2008)
""gas prices will almost certainly keep rising "
Wow, what a genius comment. Thank goodness we have the press telling us the obvious or we would all be sooo surprised. We are so lucky to have the press looking out for us.
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Domenick 6:15PM (1/05/2008)
I'd actually read oil may fall to $75 a barrel this Spring.
Regardless, I really wish my vehicle was electric. I really hate giving these companies my money.
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Tony Belding 7:47PM (1/05/2008)
Oil prices are seasonal, so it's actually pretty likely that it will be cheaper in the spring. About September or so is when I expect the next big price shock.
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Don A 9:25AM (1/06/2008)
"with the $100 price limit on a barrel of oil broken last week (if only for a minute and then most likely by one guy with an inferiority complex)"
This statement may have been correct for Tuesday the 2nd. But oil spent some time above $100 on Wednesday and did in fact reach a high of $100.09.
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Benjamin Jones 8:33PM (1/05/2008)
Everytime gas goes up we see some poll in the papers about how "Americans" are thinking about gasoline differently...but I've yet to see anyone acting differently?
I wonder what it will take to make > 50% of US denizens do something to use 20% less fuel...that would be an interesting poll.
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Benjamin Jones
http://ecomodder.com
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Bill 8:52PM (1/05/2008)
$100/bbl because it's priced on the spot market, with huge fear premiums (will Nigeria explode into full-scale civil war?, will the U.S. invade Iran?, etc.)
Production cost doesn't come into play.
If we here in the U.S. experience a deep recession this year, price per bbl could drop by half (like it or not, we are the world's consumer)
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sensitive_man 10:07AM (1/06/2008)
Domenick,
Me too, I hate giving these environmental rapists money every time I fill up. Regardless, you can fill up less frequently and in turn give these companies smaller revenues just by driving in a well mannered fashion, keeping your car properly maintained and tire pressure up.
Also, check out http://www.sierraclub.org/sierra/pickyourpoison/
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Lad 1:42PM (1/06/2008)
Have you noticed that high priced gasoline doesn't keep people from changing their driving habits? And they will often cut back on buying other things before they cut their gasoline budgets.
I think the president was wrong. We are not "addicted to oil." We are addicted to driving! And, this White House is addicted to Oil Money. Notice that even as Bush mouths negatives about the oil companies, he still defends their right to receive subsidies in the energy bill; even as they make record profits; says one thing, does another...zip creditability that reflects badly on my party and our candidates.
Instead of spending this money on oil companies, we should be supporting mass production of solar electric and heat devices. The future is solar electricity generation and battery cars not ineffecient diesel internal combustion engines.
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sr 6:01AM (1/07/2008)
My heart bleeds for you .. not
Petrol is just under $8 per gallon in the UK.
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