How high do you see gas prices going before they start coming back down?

[stburr91]

Originally Posted by 2nd trick op

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.

OPEC has been very clear that they were setting their production not based on demand, but on a certain price per barrel.

[erieguy]

2016 gas prices: Summer uptick won't last

No surprise.

[gladhands]

Originally Posted by SteelCityRising

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.

Higher gas prices equate to hire consumer prices, which disproportionately impact our most economically fragile populations. That's not something I'd be willing to endure in exchange for propping up an unsustainable, ecologically devastating industry.

[bradjl2009]

Originally Posted by gladhands

Higher gas prices equate to hire consumer prices, which disproportionately impact our most economically fragile populations. That's not something I'd be willing to endure in exchange for propping up an unsustainable, ecologically devastating industry.

They go up every summer.....He's not saying he's rooting for them to go higher but that it would be nice if they didn't get higher than that price, which is much lower than it's been the past few summers.

[gg]

Originally Posted by 2nd trick op

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

There is a lot more involved than just supply and demand. Very powerful governments/companies/groups control supplies and they know the demand and can predict demand's future. Do you know how much power Russia has in this industry? There are deals going on all the time for positioning and Russia is a very big player. There are some powerful countries that would prefer fuel prices very low right now due to Russia's expansion and other plays Russia is making. In other words much of this could be to punish Russia with super low prices. The supply is a more calculated thing than you would like to know. Believe me, if you had a discussion with Bob Dudley or Rex W. Tillerson it may blow your mind what all goes on.

The response from someone earlier on here saying he talked to someone that discussed Russia and the oil/gas prices is most likely involved in this industry or knows a lot about it. I would enjoy discussing it with that person, but to be honest it isn't a topic that is worth discussing here. I will leave it at that and not interesting in debating all of this with people that aren't in the industry. All it will be is dopy discussions.

Here is what I think will happen. The industry will keep prices super low until they get what they want through negotiation. I suspect Russia is a HUGE part of all of this due to their massive reserves. The window should be two years, but if it goes further there will be more pain in that industry, but consumers will enjoy low prices. Most of the giant oil companies are okay with a couple of years of low profits and they can shake the tree and get rid of a bunch of employees in the process and not replace them all later when the industry decides to cut production and get prices back up. I think the current price will sort of stick around for the most part, but these little moves are about meaningless. Prices will go up at some point The big boys aren't going to starve themselves forever.

[erieguy]

Nothing to do with it. This was predicted months ago and happens every year.

[Merge]

Originally Posted by 2nd trick op

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

I'm always astonished at the naiveté of people who insist that some pure economic theory is up to the task of explaining international pricing for commodities. The reality is that global politics make it a much more complex process than you have been led to believe.