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msparks
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 Posted: 05/04/06 - 13:10 Post subject: $5 a gallon!
As oil soars toward $100 a barrel, it's likely, experts say
BY PAUL H.B. SHIN
DAILY NEWS STAFF WRITER
Tight petroleum supplies amid soaring demand could drive crude oil prices above $100 a barrel by this winter, energy experts warned yesterday.
That could translate into gas prices of more than $5 a gallon at the pump and spike home heating oil an additional 30%, analysts said.
Iran's deputy oil minister, Hadi Nejad Hosseinian, fueled the paranoia yesterday by predicting that crude could hit $100 a barrel by the end of the year - $26 above even yesterday's near-record price.
The problem is that Iran, the world's fourth-largest producer of crude, is just one of several hot spots in danger of boiling over, experts said.
"There's so much that could go wrong right now," said Phil Flynn, an energy analyst at Alaron Trading in Chicago. "This is the scariest time we've seen in oil in a long period of time."
In addition to the looming showdown with Iran over its nuclear ambitions, terrorists have repeatedly threatened to attack oil infrastructure in Saudi Arabia; Nigerian rebels have disrupted exports by 25%; Iraq is pumping out 30% less crude than it did before the war; production in the Gulf of Mexico has yet to return to normal after Hurricanes Katrina and Rita, and Bolivian President Evo Morales yesterday seized control of the country's oil and gas fields and gave foreign companies 180 days to agree to new deals with the government.
"We're on a hair trigger," said John Kilduff, senior vice president of energy risk management at Fimat USA, a New York commodities trading firm.
"Unfortunately for consumers, we're on the brink of [$100 a barrel] as we speak," he said. "It's been a parade of horribles."
U.S. Energy Secretary Samuel Bodman said the market is worried about a supply disruption, and "there's no doubt a [fear] premium" is reflected in today's prices.
Crude prices also are being pushed north by soaring demand from developing countries such as China and India, coupled with a razor-thin surplus capacity among exporters.
Bodman said high gasoline prices are a "crisis" for Americans. "It is a crisis in the sense of the individual," Bodman said after a meeting with the Saudi oil minister.
If crude hits $100 a barrel, gas prices could easily top $5 a gallon here and home heating oil could jump an additional 30%, Kilduff said.
"That would be quite painful," he added.
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airehead
Oompa Loofah
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Posted: 05/04/06 - 13:18 Post subject:
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j1miller
Puppy Love!
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Posted: 05/04/06 - 13:26 Post subject:
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gretriever
Hipster Doofus
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Posted: 05/04/06 - 13:27 Post subject:
People won't care. They didn't when it hit $1 a gallon, they didn't when it got to $2, and they didn't when it reached $3.
But there will be less paying and more theft of gas. That's started already.
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JACKED UP
PRESIDENT
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Joined: 06 Jun 2003
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Location: www.johnnydu.com
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Posted: 05/04/06 - 14:12 Post subject:
DH needs a raise for sho! 
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rolling rock
The Pinball
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Posted: 05/04/06 - 14:52 Post subject:
 i've already heard $12 by august
i'm sayin! 
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akern
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Posted: 05/04/06 - 14:54 Post subject:
| rolling rock wrote: | i've already heard $12 by august
i'm sayin! |
I heard $15 by July!!
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MechEngDropout
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Posted: 05/04/06 - 15:08 Post subject:
| akern wrote: | | rolling rock wrote: | i've already heard $12 by august
i'm sayin! |
I heard $15 by July!! |
$16 and a package of sliced pastrami in 3 weeks!
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Ms. Jenn
Fresh, Hot & Wild
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Posted: 05/04/06 - 22:15 Post subject:
When I was a teenager, I remember my dad (who worked at an oil refinery) regularly telling us the price of oil. I remember he said it hit $52 and he was excited because his stock was going up. Gas was still less than a $1/gallon at that point in time.
How many gallons of gas does a barrel produce? 20 gallons. Divide the cost of a crude barrel by 20, and that will be the static cost, plus whatever overhead/profit. $3.15+ infinite
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.jrjo
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Posted: 05/04/06 - 22:28 Post subject:
People will still pay.
It'll be the "discretionary spending" that'll take the hit. Peeps will have less 'extra' for charities, european vacations, chewing tobacco and kool-aid stands. 
So gas costs somebody $150 instead of $75 per month, it won't dent the budget of the average 3-car garage of gas-guzzlers. We're a pretty spoiled country so I'd wager until a gallon become downright outrageous, people will belly up to the pump, grumble and still pay because they 'waste' money umpteen other ways to pinch it away from.
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MechEngDropout
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Posted: 05/04/06 - 22:40 Post subject:
| .jrjo wrote: | People will still pay.
It'll be the "discretionary spending" that'll take the hit. Peeps will have less 'extra' for charities, european vacations, chewing tobacco and kool-aid stands.
So gas costs somebody $150 instead of $75 per month, it won't dent the budget of the average 3-car garage of gas-guzzlers. We're a pretty spoiled country so I'd wager until a gallon become downright outrageous, people will belly up to the pump, grumble and still pay because they 'waste' money umpteen other ways to pinch it away from. |
What, in your opinion, is downright outrageous?
I think we'll really see some difference at $8 or 9 a gallon.
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airehead
Oompa Loofah
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Posted: 05/04/06 - 23:16 Post subject:
| .jrjo wrote: | People will still pay.
It'll be the "discretionary spending" that'll take the hit. Peeps will have less 'extra' for charities, european vacations, chewing tobacco and kool-aid stands.
So gas costs somebody $150 instead of $75 per month, it won't dent the budget of the average 3-car garage of gas-guzzlers. We're a pretty spoiled country so I'd wager until a gallon become downright outrageous, people will belly up to the pump, grumble and still pay because they 'waste' money umpteen other ways to pinch it away from. |
I know we've cut down on our travels around the area. Gone are Sunday drives through Napa and Sonoma. Gone are Saturday trips to a new town to discover something new. (and spending money in those towns, thus helping the economy) Higher gas=higher prices in stores. Higher gas=less travel thereby less spending for a good chunk of the population. Either way, it will put a pinch in the economy.
Higher prices will also impact minimum wage.
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blue
your favorite weapon
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Joined: 21 May 2002
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Posted: 05/04/06 - 23:47 Post subject:
one day the world will wake up and realize we aren't dependent on oil.
what i'd love to know is at what point would the public say "eff that, and eff the price of gas". boycott the pumps for a day.
the price of oil is only going up so that the billionaires keep making billions of dollars.
the consumer is bending over on this one. if consumers grew some balls they could dictate the price of oil.
i patiently await the energy crisis. as long as we have heat in the winter, it ain't no thang, if i never travelled away from my city again i'd be ok with that.
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blue
your favorite weapon
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Joined: 21 May 2002
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Posted: 05/04/06 - 23:53 Post subject:
| airehead wrote: | | .jrjo wrote: | People will still pay.
It'll be the "discretionary spending" that'll take the hit. Peeps will have less 'extra' for charities, european vacations, chewing tobacco and kool-aid stands.
So gas costs somebody $150 instead of $75 per month, it won't dent the budget of the average 3-car garage of gas-guzzlers. We're a pretty spoiled country so I'd wager until a gallon become downright outrageous, people will belly up to the pump, grumble and still pay because they 'waste' money umpteen other ways to pinch it away from. |
I know we've cut down on our travels around the area. Gone are Sunday drives through Napa and Sonoma. Gone are Saturday trips to a new town to discover something new. (and spending money in those towns, thus helping the economy) Higher gas=higher prices in stores. Higher gas=less travel thereby less spending for a good chunk of the population. Either way, it will put a pinch in the economy.
Higher prices will also impact minimum wage. |
the economy is fueled by people spending on credit and buying tons of sh*te they don't need. massive corporations get incredibly rich on huge markups while poor people can't seem to get ahead.
i really don't have much sympathy for the situation at all.
there is such an imbalance in the world right now that it's hard to imagine there isn't a massive change coming.
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msparks
Member
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Posted: 05/05/06 - 06:58 Post subject:
| airehead wrote: |
Higher gas=higher prices in stores. Higher gas=less travel thereby less spending for a good chunk of the population. Either way, it will put a pinch in the economy.
Higher prices will also impact minimum wage. |
Bingo! Besides the hit each of us takes when we pump gasoline into our vehicle's tank, it doesn't end there. The cost of goods and services will increase, too. The rise in fuel costs will trickle down and it's the ol' double whammy.
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