Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The people in the oil business don't have a crystal ball... they have no idea (or control) what gas will be. My guess is that it will be less than $5.00.
The oil price performance reflects an increase and shift in demand for oil, and the shift in relative productivity growth, from the countries of early industrialization (namely the US) to the newly industrialized countries (namely in Asia). This also helps to explain the decline in the dollar.
In short, the purpose of the Iraq war has been to determine who would sell oil to China and other Asia. The Bush family and its allies won: they, among other suppliers, sell oil to the world at a higher price, financing the war with other people's money, while during the same period domestically US households have invested in inefficient housing and motor vehicles.
Thus the best investment has proven to be oil, other energy, and commodities in general.
While a doubling in the price of gas in the next three months seems a bit far-fetched, the direction is obvious and there is no reversal in the foreseeable future: the US economy domestically has restructured in the wrong direction and it will take time to undo the damage and put it back on the right track (if the right economic policy choices are made, and I doubt it).
Even if the US goes into a deep recession, the fall in demand on this side of the world (and in Europe) may indeed be offset by sustained demand in other regions.
In the foreseeable future, energy prices will continue to rise, but the pace on a quarter-to-quarter basis is hard to predict: I would also say closer to $5 than to $10 by Labor Day, but sometime in 2009 is certainly possible, especially if demand in Asia keeps up or accelerates, possibly regardless of a prolonged US recession.
A guy I know in the oil business says gas will certainly be $10 per gallon by Labor Day. Think it will happen?
10 dollars would be incredible (and not in a good way). Could it happen? Well anything is possible. But I think it might be more like 5.00 to 6.00.
As others have pointed out, due to seasonally adjusted oil rates, the price will drop for a short time (as it does every year around a certain time) then continue its ascension up to the heavens.
Quote:
Originally Posted by bale002
The oil price performance reflects an increase and shift in demand for oil, and the shift in relative productivity growth, from the countries of early industrialization (namely the US) to the newly industrialized countries (namely in Asia). This also helps to explain the decline in the dollar.
In short, the purpose of the Iraq war has been to determine who would sell oil to China and other Asia. The Bush family and its allies won: they, among other suppliers, sell oil to the world at a higher price, financing the war with other people's money, while during the same period domestically US households have invested in inefficient housing and motor vehicles.
Thus the best investment has proven to be oil, other energy, and commodities in general.
While a doubling in the price of gas in the next three months seems a bit far-fetched, the direction is obvious and there is no reversal in the foreseeable future: the US economy domestically has restructured in the wrong direction and it will take time to undo the damage and put it back on the right track (if the right economic policy choices are made, and I doubt it).
Even if the US goes into a deep recession, the fall in demand on this side of the world (and in Europe) may indeed be offset by sustained demand in other regions.
In the foreseeable future, energy prices will continue to rise, but the pace on a quarter-to-quarter basis is hard to predict: I would also say closer to $5 than to $10 by Labor Day, but sometime in 2009 is certainly possible, especially if demand in Asia keeps up or accelerates, possibly regardless of a prolonged US recession.
Good luck!
I just read a news article that said a lot of Asian nations are increasing gas prices to hamper demand. We shall see how this all plays out.
The oil price performance reflects an increase and shift in demand for oil, and the shift in relative productivity growth, from the countries of early industrialization (namely the US) to the newly industrialized countries (namely in Asia). This also helps to explain the decline in the dollar.
In short, the purpose of the Iraq war has been to determine who would sell oil to China and other Asia. The Bush family and its allies won: they, among other suppliers, sell oil to the world at a higher price, financing the war with other people's money, while during the same period domestically US households have invested in inefficient housing and motor vehicles.
Thus the best investment has proven to be oil, other energy, and commodities in general.
While a doubling in the price of gas in the next three months seems a bit far-fetched, the direction is obvious and there is no reversal in the foreseeable future: the US economy domestically has restructured in the wrong direction and it will take time to undo the damage and put it back on the right track (if the right economic policy choices are made, and I doubt it).
Even if the US goes into a deep recession, the fall in demand on this side of the world (and in Europe) may indeed be offset by sustained demand in other regions.
In the foreseeable future, energy prices will continue to rise, but the pace on a quarter-to-quarter basis is hard to predict: I would also say closer to $5 than to $10 by Labor Day, but sometime in 2009 is certainly possible, especially if demand in Asia keeps up or accelerates, possibly regardless of a prolonged US recession.
Good luck!
You must be a speculator. There is nothing supply and demand about what is happening. The price rose $16 because the ECB said they might raise rates next month, and if that happened it would put pressure on the dollar. Let me say again, the ECB did not raise rates, they only said they might raise rates, and thats all it took to send oil prices through the roof. You can give me that demand in China bull***** but thats all it is, bull*****. These rising prices are forcing them to stop subsidizing which will slow demand in Asia.
I doubt if it will even reach 5.00 by then. I forsee it going up, then down then up from now on. Unless Ben's helicopter runs out of gas the long-term trend will be for higher and higher oil.
Location: Huntersville/Charlotte, NC and Washington, DC
26,700 posts, read 41,723,992 times
Reputation: 41381
Quote:
Originally Posted by Humanoid
No, gas will go up to the $5 range in the summer and then drop back down to the $3.5~$4 range.
Why would gas go up to $10?
If another Hurricane Katrina strikes the Gulf of Mexico or Texas that would give us an attainable shot of $10 a gallon gas.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
