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NEW YORK - Oil prices soared to $100 a barrel Wednesday for the first time ever, reaching that milestone amid an unshakeable view that global demand for oil and petroleum products will continue to outstrip supplies.
Surging economies in China and India fed by oil and gasoline have sent prices soaring over the past year, while tensions in oil producing nations like Nigeria and Iran have increasingly made investors nervous and invited speculators to drive prices even higher.
Yikes! How high will it have to go before we change our energy consumption habbits.? I told myself that if gas gets above $4 a gallon, Im going to start looking for a place a few blocks from work.
Everyone who follows the markets knew this would happen, and while it will pull back to around $85 it will resurge to well over $100 by this time next year. I'm betting $120 because there is no letup in China or India. Even though the US economy has been slowing for the last six months, and 2008 will be a horrible year for us, the rest of the world no longer really cares that much.
Gas will be five bucks a gallon a year from now, not four.
Everyone who follows the markets knew this would happen, and while it will pull back to around $85 it will resurge to well over $100 by this time next year. I'm betting $120 because there is no letup in China or India. Even though the US economy has been slowing for the last six months, and 2008 will be a horrible year for us, the rest of the world no longer really cares that much.
Gas will be five bucks a gallon a year from now, not four.
I don't have an issue with the prediction of $120, but I do not see the $5 per gallon corrolary. If you follow the barrel price of oil versus the dollar per gallon of gas throughout history, the graphs overlay quite nicely. Therefore I find it difficult that a 20 percent (120 versus 100) per barrel increase will cause a 67% ($5 versus $3) increase in the price of gas. My guess would be $3.50 - $3.80 Range.
The rise in oil prices is just a reminder of how much value our dollars have lost. As for supplies, peak oil has been known for decades. I for one look forward to expensive oil and a retreat from the suburbs. The whole economy needs to change, and unless it does, we are really going to be in a bad place.
Location: Sitting on a bar stool. Guinness in hand.
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Quote:
Originally Posted by Zanman
Everyone who follows the markets knew this would happen, and while it will pull back to around $85 it will resurge to well over $100 by this time next year. I'm betting $120 because there is no letup in China or India. Even though the US economy has been slowing for the last six months, and 2008 will be a horrible year for us, the rest of the world no longer really cares that much.
Gas will be five bucks a gallon a year from now, not four.
Quote:
Originally Posted by UpperPeninsulaRon
I don't have an issue with the prediction of $120, but I do not see the $5 per gallon corrolary. If you follow the barrel price of oil versus the dollar per gallon of gas throughout history, the graphs overlay quite nicely. Therefore I find it difficult that a 20 percent (120 versus 100) per barrel increase will cause a 67% ($5 versus $3) increase in the price of gas. My guess would be $3.50 - $3.80 Range.
I think the $120 dollar a barrel oil will hit by late June early July. when the summer driving begins. I'd say I my area (around northern NJ.) Prices will top out at $4.10 a gallon for regular grade. Just my guess though.
Gas is nearing the breaking point where ordinary middle-class people will start to seriously curtail their usage. And I don't forsee it getting that much better. 90 per barrel of oil is is probably the new price floor unless there's a global recession.
Oh please. Welcome to the rest of the world. Gasoline is so undervalued here in relation to the rest of the planet that it is laughable. Hell milk is more expensive. UK is about 4 pounds + per gallon (US) That makes it the better part of $7-8.
Don't like the prices, drive less, or be more fuel efficient.
The rise in oil prices is just a reminder of how much value our dollars have lost.
Agreed.
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