Oil getting close to $120, gas prices following upward trend
Photo by Jurek D. Licensed under Creative Commons license 2.0.
I doubt there are any regular readers of AutoblogGreen who need a reminder as to why greener cars are not only cool but, increasingly, vitally important for the pocketbook. The AP is reporting that a new series of small issues somewhere in the world - in this case there is unrest in Nigeria and a refinery strike in the UK, but it could really be anything and the important thing to note is just how little it takes to spook the skittish market - have driven the price of a barrel of oil to just under $120. Yes, that's a new all-time high. As for the price at the pump for American drivers, that's up, too. The latest U.S. government estimates for average gasoline retail prices, from April 21st, peg the number at $3.51. This is up 64 cents from a year ago. Ok, that's your reminder. Did you need it?
[Source: AP]
Reader Comments (Page 1 of 1)
Aimless 10:41AM (4/28/2008)
$3.51? Wow, that's cheap.
Over here it's 1.589 Euro/liter or 9.40 $/gallon, thanks to a refinery strike 750 miles away.
Reply
dantellocy 10:56AM (4/28/2008)
Am I wrong to assume that one shouldn't use currency conversion comparisons for the price of gasoline? Said comparison would only be relevant if you were buying your gasoline in that other market. But we don't fill up in another country's economy so it's irrelevant to say that gas cost $xxx here and $xxxx there, right? $4 here hurts the same as 4 Euros there.
Reply
dantellocy 11:02AM (4/28/2008)
I will admit though that USA gasoline prices are still lower than European prices regardless of the currency used. I'm American and it hurts to fill up now but I really can't wait for gas to get even more expensive as it seems the only way to force change in our society is through the pocketbook. Change should come from common sense or doing the right thing but it doesn't.
Reply
BlackbirdHighway 11:44AM (4/28/2008)
In the news this morning:
OPEC President Chakib Khelil does not rule out oil prices reaching $200 a barrel,...
Reply
Ookuma 12:07PM (4/28/2008)
126Yen/L
Thats $4.62/Gal.
And the price in the US compared to Japan is completely relevant to me because all of my money comes from a bank account in the US. So, $4.62+conversion fees hurts me a lot more than $3.51 would if I was home.
Reply
MikeW 3:48PM (4/28/2008)
Why the hell can't we get small engine + BIG transmission cars in the US?
For example, 2.5 & 3.7 liter engine in the Mazda6, that is a move in the wrong direction. How about a high output 2 & 3.0 liter engines.
Reply
Wildgoosechase73 4:44PM (4/28/2008)
Here's the problem with high output engines, generally they are turbo or supercharged which of course requires premium fuel. Sure you get better milage but still end up paying more. As gas prices continue to rise I'll bet we will see some turbocharged flex-fuel vehicles in the future. If the cost of premium reaches $6.00 a gallon and if cellulose E85 runs $4.00 a gallon what will you buy?
E85 critics always bring up subsidies so here we go. At this price difference subsidies can be dropped and E-85 is still competitive. It's funny how the E85 critics are pro solar but does anyone buy PV panels without taking the government subsidy or tax credit? Subsidies are subsidies....
Reply
rgseidl 6:03PM (4/28/2008)
The main reason the price of oil has skyrocketed in the last few months is that the Federal Reserve Bank has lowered interest rates to stave off a liquidity crisis. The financial sector is borrowing at those low rates to speculate in commodities, including food and oil. They hope that profits generated from artificial shortages in these goods will compensate for the write-offs in the wake of the subprime mortgage mess.
Remember, international accords limit banks to leverage ratios of 10 but hedge funds are unregulated - and therefore used to be more lucrative. At leverage ratios of 30 or more, every single one of them is way out on a limb right now and so are the investment banks that loaned them the money in the first place. It's a house of cards.
Meanwhile, all this additional money with no real economy to back it up is causing the dollar to fall like a rock - a secondary reason for rising oil prices (in dollar terms). Japan and China depend very heavily on exports to the US, so they grudgingly buy boatloads of US treasury bonds at lower yields than they should. They then grin and bear it when the Fed opens the spigots to reduce the value of that dollar-denominated debt.
This is nothing new, the US used the same trick in the 70s to force Europe to pay for a big chunk of the Vietnam war. Someday, America's habit of perpetually living above its means will come home to roost.
Reply
Kevin Nugent 8:26PM (4/28/2008)
well thanks for stating the obvious
Reply
Peekoyle 8:39PM (4/28/2008)
This is good news for the Electric Car movement.
Reply
MikeW 4:41PM (4/29/2008)
rgseidl
'Someday, America's habit of perpetually living above its means will come home to roost.'
I though that day would be in 1-2 decades, but unfortunately it will be in 1-2 years.
Mazda should destroke the new 2.5 I4 for 2 liters. 160hp is plenty. (especially with a 7 speed double clutch transmission-cue VW)
Ford's 3.0 V6 is plenty oversquare, b/s 89x79.5
There is plenty of performance left to be extracted. 240hp & a 6 speed double clutch, fun fun fun.
Most Euro engines use 95RON mid-grade. Since gas stations do not use a fixed percentage increase, it makes more sense to get a high compression engine that takes mid-grade or premium.
I just topped off, it was $3.8, 3.9, 4.0 (not at my usual place, so prices were a dime higher), so if you had an engine that took premium instead of regular, all you need is > 5% better mileage to be $ ahead.
Reply
Eleventeen 11:10PM (4/29/2008)
I know this is Autoblog Green, but I have two words:
BAKKEN RESERVE.
If they free up dollars in the US that we're spending on oil right now, we can spend more on oil alternatives. We could also make the US more secure by promoting oil independence.
Reply