How high do you see gas prices going before they start coming back down? (layoffs, tax)

[alastad]

And how low do you see them going back down to?

[SteelCityRising]

Interesting question. I was shocked to see gas prices at my usual GetGo rise from $1.89 to $2.05 in just a few days. I'm wondering how high they'll go when stations switch over to the cleaner-burning "summer blend".

[gg]

There is some pressure to get them higher due to how many jobs are being lost. The balance is way out of whack at the moment. I feel they will keep going up slowly and not come back down.

[SteelCityRising]

Originally Posted by gg

There is some pressure to get them higher due to how many jobs are being lost. The balance is way out of whack at the moment. I feel they will keep going up slowly and not come back down.

I'd be happy if gas prices this summer peaked somewhere around $2.69/gallon. I feel as if that provides enough profit to prevent more layoffs in the oil/gas industry while not breaking most people's pocketbooks the way we were all pinched when we were paying nearly $4/gallon.

[stburr91]

I heard that as part of the Russians pulling out of Syria, there was an agreement with OPEC that oil production would be set to ensure that oil is no less that $40 a barrel.

I don't know that we'll see prices drop anytime soon.

[bradjl2009]

I was in upstate NY this weekend and saw stations still selling it up there for under $2. I think that's the first time I've seen gas cheaper in NY than here in PA.

[gg]

Originally Posted by stburr91

I heard that as part of the Russians pulling out of Syria, there was an agreement with OPEC that oil production would be set to ensure that oil is no less that $40 a barrel.

I don't know that we'll see prices drop anytime soon.

You heard correct. These prices have a lot to do with Russia, but we aren't supposed to talk about this. I am in this industry a lot, but don't really discuss it all that much, but Russia IS a big piece of the puzzle. The person that gave that information to you probably knows a LOT more than most.

[2nd trick op]

Originally Posted by gg

There is some pressure to get them higher due to how many jobs are being lost. The balance is way out of whack at the moment. I feel they will keep going up slowly and not come back down.

And what economic theory to which you subscribe allows anything other than supply and demand to "set" a price for a basic industrial feedstock?

According to the attached link,

World

The United States has regained its position as the world's top petroleum producer. (Not that I'm entirely enthused about that; the last forty years should have taught us to plan ahead, but not to trust the process to the most flamboyant of the environmental zealots.)

The point being: petroleum will be just one of many factors in the process by which an industrialized, and later on, a post industrial society adjusts. Barring another "oil shock", I'd expect prices to remain fairly stable in a pattern similar to the years 1982-1999.

[erieguy]

Lol. Spring is here, Easter is this weekend, and the traveling begins. It wasn't going to stay so cheap forever.

[ki0eh]

Originally Posted by bradjl2009

I was in upstate NY this weekend and saw stations still selling it up there for under $2. I think that's the first time I've seen gas cheaper in NY than here in PA.

It's been that way since the Corbett wholesale gas tax "oh it's not a gas tax increase" kicked in.

(Personally I think low prices are good for tripling the gas tax again, but being honest about it.)