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Old 10-15-2010, 02:05 PM
 
Location: steubenville,ohio
79 posts, read 149,966 times
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It seems like every other day the price of gas changes,A month ago it was $2.59 a gallon and was going up and down every few days then it just kept going up and now it is almost $3.00 a gallon! What is going on here?
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Old 10-15-2010, 02:20 PM
 
13,596 posts, read 17,081,410 times
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The reason the price has shot up recently is do to speculation in the ethanol market and speculation regarding increased international demand do to a weaker dollar.

On ethanol - The government is currently considering raising the percentage of ethanol in gas from the current 10% to 15%. Doing so would cause a short term shortage of ethanol and investors are hedging on that happening. Increased speculation means increased prices at the pump.

On oil - Since all oil is traded in U.S. dollars, the weaker the dollar, the cheaper oil is for other countries. The investors believe that the currently weakened dollar will remain so, if not drop further and that would spawn increased demand in other countries as their relative price drops. Increased demand (even speculative) means increased prices at the pump.

So, government action regarding ethanol and investor speculation in the ethanol and crude markets is what is driving the current increase.
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Old 10-15-2010, 02:25 PM
 
8,410 posts, read 8,946,230 times
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Because it can. Because someone decided it should go up and down. Because months ago someone speculated that it would go up, or down, or whatever causes it to change. Because the people who own the oil that gas comes from know they can get what they want. Etc., etc., etc....

You'll notice that none of these reasons have anything to do with the actual cost of producing gas.
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Old 10-15-2010, 02:30 PM
 
Location: Scottsdale, AZ
4,487 posts, read 10,129,307 times
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I've been paying about $2.80/ gallon here which is up but I don't feel drastically above what I paid a few months ago. Filled up my F-150 yesterday and it took nearly $90. The one downside to driving a big vehicle .
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Old 10-15-2010, 02:35 PM
 
Location: Sinking in the Great Salt Lake
11,290 posts, read 9,913,229 times
Reputation: 10327
Quote:
Originally Posted by iluvmypets View Post
It seems like every other day the price of gas changes,A month ago it was $2.59 a gallon and was going up and down every few days then it just kept going up and now it is almost $3.00 a gallon! What is going on here?
This is what is going on:





In the short term, this is "helping" too:

http://www.bloomberg.com/news/2010-1...l-revenue.html
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Old 10-15-2010, 03:06 PM
 
13,596 posts, read 17,081,410 times
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Quote:
Originally Posted by Chango View Post
This is what is going on:





In the short term, this is "helping" too:

OPEC Members Seek $100 Oil to Counter Dollar Weakness - Bloomberg
In the past 33 years we have consumed triple the worlds known deposit as of 1976. I'm not saying that oil isn't a finite resource, but we have far more of it than peak oil theorists would like us to believe. Maybe that's why the graph keeps moving further out?

As the price per barrel increases, it opens up more options for extracting oil that was previously unprofitable. For instance, tapping beyond the 20% level in existing "sand wells", coal oil sands like in Canada, shale extraction like in the U.S., etc. The single major shale deposit in the U.S. contains enough oil to feed our need at 2010 levels for the next 40 years.

There are myriad other reasons to move away from oil as a primary source to power our cars, but the belief that in 10 years we will face some cataclysmic shortage is nothing short of doomsday prophecy. I've said it in other threads and I'll say it again here. If your "peak oil" chart is right, it's time to start stocking up on ammo and canned goods, because the entire world is about to collapse in the next 10 years. Buying into this, means buying into the end of the world as we know it.
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Old 10-15-2010, 03:22 PM
 
14,346 posts, read 12,191,837 times
Reputation: 10256
Quote:
Originally Posted by Chango View Post
This is what is going on:





In the short term, this is "helping" too:

OPEC Members Seek $100 Oil to Counter Dollar Weakness - Bloomberg
^^^What Chango said. It's time to ditch the SUVs, the long commutes, & the McMansions in favor of alternative energy sources, more compact development with walkable neighborhoods, smaller, more energy efficient homes, & smaller, more energy efficient automobiles.

All the cheap oil has been drilled.
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Old 10-15-2010, 03:47 PM
 
Location: Earth
4,214 posts, read 11,892,816 times
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Quote:
Originally Posted by mysticaltyger View Post
^^^What Chango said. It's time to ditch the SUVs, the long commutes, & the McMansions in favor of alternative energy sources, more compact development with walkable neighborhoods, smaller, more energy efficient homes, & smaller, more energy efficient automobiles.
Yes but sadly people have done already begun to branch out, commuting even longer distances to work and such that they used to.

Automobiles don't need to be any smaller, just more efficient. Technology is increasing every day. Cars like the new V6 Mustang have the power of a V8 just a few short years ago and probably get better mpg doing it too.
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Old 10-15-2010, 03:58 PM
 
Location: The Pizzle, FLorida and Poconos in Pa
362 posts, read 92,393 times
Reputation: 235
Quote:
Originally Posted by iluvmypets View Post
It seems like every other day the price of gas changes,A month ago it was $2.59 a gallon and was going up and down every few days then it just kept going up and now it is almost $3.00 a gallon! What is going on here?
As long as the dollar continues to devalue, the prices of commodities (especially oil) will continue to rise.
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Old 10-15-2010, 05:08 PM
 
1,021 posts, read 1,046,178 times
Reputation: 573
Peak oil is here and it's not gona be nuthen nice. The price is predicted to be between 5/10 dollars a gallon by 2012, best to have a small fuel effeciant car tucked away you will be needing it unless your sitting on a boat load of dollars.
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