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***Jed K*** · 03-10-2008, 05:52 PM

This is getting ridiculous. How can anyone afford to drive?

CNN Wrote:U.S. gasoline prices were poised Monday to set a new record at the pump, having surged to within half a cent of their record high of $3.227 a gallon.

Oil prices, meanwhile, surged above $108 to a new inflation-adjusted record and their fifth new high in the last six sessions on an upbeat report on wholesale inventories.

The national average price of a gallon of gas rose 0.7 cent overnight to $3.222 a gallon, 69 cents higher than one year ago, according to AAA and the Oil Price Information Service. Last May, prices peaked at $3.227 as surging demand and a string of refinery outages raised concerns about supplies.

That record will likely be left in the dust soon as gas prices accelerate toward levels that could approach $4 a gallon, though most analysts believe prices will peak below that psychologically significant mark. In its last forecast, released last month, the Energy Department said prices will likely peak around $3.40 a gallon this spring; a new forecast is due Tuesday.

Source and full article @ http://edition.cnn.com/2008/BUSINESS/03/...index.html

newsjunkie · 03-11-2008, 03:56 PM

Jed K Wrote:This is getting ridiculous. How can anyone afford to drive?

Here's an idea: Commute by bicycle. If just 20 percent of Americans could commute to work, we'd substantially reduce our thirst for oil. We'd also be exploiting our own "vast energy reserves" -- our obesity!

sunken · 03-11-2008, 04:38 PM

Two words. Public transportation. In big cities, that will become the norm. Unfortunately, in small towns, such systems are not always available so driving will still be the norm. The rural areas where a car is necessary will be hardest hit.

Let's not forget that gas not only is for cars, but for trucks that haul all sorts of goods, causing prices to go up for those as well. When gas gets to $4.00, expect food to go up as well. Looks like it's going to be a difficult summer.

***Jed K*** · 03-11-2008, 05:21 PM

I do take public transportation; however, the prices also increase as a result of oil prices going up, do they not? Like you stated, gas is not only for cars.

Regarding the bicycle comment, I agree. Unfortunately, not everyone is within cycling distance to their destination.

newsjunkie · 03-11-2008, 11:21 PM

Jed K Wrote:Regarding the bicycle comment, I agree. Unfortunately, not everyone is within cycling distance to their destination.

That's right. This is why I set the goal at a mere 20 percent.

***Jed K*** · 03-12-2008, 05:28 PM

And the prices continue to rise:
http://money.cnn.com/2008/03/12/markets/...tm?cnn=yes

Mike_115 · (This post was last modified: 03-13-2008 05:25 AM by Mike_115.)

The problem is NOT oil. The problem is money. The fed keeps printing it, and the value goes down. Sure oil prices fluctuate some anyway, but we see inflation first in gas, and it pushes inflation everywhere else. But wages never keep up with the rise in costs. Check out this graph that lists oil prices in Gold, and in Dollars. In 1974 when the Dollar stopped being backed by Gold is when it started. If you look at the price in terms of gold you will see the actual price fluctuations, instead of the ones created by inflation.

Edit: The thumbnail isn't displaying right, but if you click on it the image is fine.

SDLinda · (This post was last modified: 03-14-2008 05:51 PM by SDLinda.)

It's some of both. Things were easier when the dollar was directly linked to gold; then all commodities simply shifted in relationship with each other. Now that the dollar is not tied to a real commodity, it can fluctuate on its own, making analysis more difficult. In 1971, the price of gold was (set at) $35 per ounce; oil was $3.50 a barrel (10 to 1 ratio). Gold shot up drastically by 1981, to about $700; oil also rose drastically in 1981, to about $35 (20 to 1 ratio). The ratio is back down now (or UP in terms of oil being worth more gold), with gold at $1000 and oil at $100 (10 to 1 ratio). So again, the dollar is losing value AND oil is gaining value as world demand for oil increases.

tabishis · 04-13-2008, 09:16 PM

Unbelievable! Don't mean to scare anyone but an acquaintance of mine owns an Exxon Mobil gas station and he's very sure that gas prices will go up to $6/gallon and will come one eventually to $4.50/gallon regular. He predicted that it'll start happening this summer and by winter we'll be paying over $4 per gallon. I did a presentation for my business class on US's dependence on Middleeast for oil needs. I think now is the time to start THINKING seriously about this issue and DO SOMETHING about it.
We all know what outsourcing did to USA's economy. Trillions of dollars have been OUTSOURCED to India and China. It's ridiculous. I am not against any nation but we've got to learn to become independent for our own needs.

tsmaster · 06-01-2008, 07:18 AM

The price hasn't gone down. $135 a barrel recently, and i get the feeling it will continue to rise in days to come until it eventually settles back down.

The dollar is getting weaker, which partially explains the doubling in oil prices. I think someone earlier made a very valid point, alternative transport. Many of our journeys are under a mile, which could easily be done walking or on a bike. If demand is reduced, prices will come down.