News

Gas prices inch closer to $4

by Sara Ryan
Friday, May 30, 2008. 09:34AM
314 Views 13 Comments

If I hear another comment about "Staycations" or camping out in your front yard, and some lame excuse that it is just a fun, (this is all just a wash to keep American's from freaking out that they can't afford their regualr lifestyles because of the rising energy costs), I'm gonna puke ! This is more than out of hand, and we are approaching a time where we as a nation will no longer be able to apologize for the mistakes of our leaders, but will be apologizing for our own cowardice for not stopping the injustice being dolled out by this current administration. 600,000 Iraqis are dead, and we are all to blame if we do nothing.

Check this article I saw today about the rising cost of fuel.

Retail gas prices jumped a cent Friday to a new national average over $3.96 a gallon, putting them on a course to hit $4 by early next week. Oil futures, meanwhile, traded in a narrow range as investors tried to determine whether recent price declines were temporary.

At the pump, gas prices rose to a record national average of $3.962 a gallon, according to a survey of stations by AAA and the Oil Price Information Service. Gas prices keep rising despite a downturn in the oil market over the last week, and will likely soon pass the $4 mark.

“I do think we could get to $4,” said Geoff Sundstrom, a spokesman for AAA. “We could get there right in time for June 1.”

Gas prices are already higher than that in many parts of the country, and average more than $4 in 12 states and the District of Columbia.

Diesel prices are also soaring; the national average price of a gallon of diesel rose half a cent overnight to a record national average of $4.792 a gallon. Diesel prices are above $5 in some parts of the country. Because diesel is used to transport the vast majority of the goods, prices of food and consumer goods are also rising.

High prices are cutting demand for gasoline; data from the Energy Department and Federal Highway Administration and several surveys in recent days suggest American consumers are driving less. Jitters about falling demand have helped send oil prices sharply lower since they set a new record over $135 a barrel last week.

Overnight, light, sweet crude for July delivery fell below $125 a barrel before rebounding to trade up 43 cents at $127.05 on the New York Mercantile Exchange. Prices alternated frequently between gains and losses. On Thursday, prices fell $4.41, the biggest single-day price drop since March 19.

Friday’s price uncertainty reflected a ongoing battle in the oil market between investors who feel prices have risen too far, and those who think global demand and tight supplies justify prices in the $130s — or higher.

“A $4 drop just really looks like a buying opportunity to some people,” said Brad Samples, an analyst at Summit Energy Services Inc. in Louisville, Ky.

Andy Lebow, senior vice president at MF Global LLC in New York, said investors are uncertain whether the past week’s nearly $10 price decline is a correction in a bull market, or a sign that the bull market has run its course.

Additional selling pressure came from a Commodity Futures Trading Commission investigation into possible price manipulation in oil futures markets. The CFTC also announced new rules designed to increase transparency of U.S. and international energy futures markets.

If oil prices fall, gas prices will eventually follow, analysts say. At the moment, there may be too much momentum left over from oil’s sharp rise in recent weeks to stop gas prices from hitting $4. On the Nymex, gasoline futures for June delivery rose to a trading record of $3.52 on Thursday; on Friday, the contract fell 0.52 cent to trade at $3.399. The June gasoline contract expires at the end of trading Friday; trading in expiring contracts is often volatile.

“I think (gasoline prices are) set up for a strong possibility ... of a strong move above $4,” Samples said.

“Whether that becomes a price ceiling (followed by price declines) we’ll just have to wait and see,” Sundstrom said.

In other Nymex trading, June heating oil futures, which also expire Friday, fell 0.6 cent to $3.6825 a gallon, and July natural gas futures rose 21.5 cents to $11.689 per 1,000 cubic feet.

In London, July Brent crude rose $1.07 to $127.96 a barrel on the ICE Futures Exchange.

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Monday, June 2, 2008. 04:30PM by Bret Carpenter
Anchor currency shit
Monday, June 2, 2008. 04:28PM by Bret Carpenter
BRETton woodshit
Monday, June 2, 2008. 12:45PM by Bret Carpenter
blip
Monday, June 2, 2008. 12:29PM by Buddy 'Friendly' Wachenheimer
Bretshit regarding Bushit
Saturday, May 31, 2008. 08:47PM by Bret Carpenter
Hedge Fund Thingy part II. hedge fund liquidation happened in the 90's
Saturday, May 31, 2008. 08:45PM by Bret Carpenter
Hedge Fund Thingy part I. For much of the 20th century, labor and capital fought bitterly for control of the industrialized economy. The titans of industry ultimately won a resounding victory over the unions, but the story doesn't end there. In today's economy, value is largely the product of knowledge and information. Companies cannot generate profits without the ideas, skills, and leadership capabilities of knowledge workers. It's these factors--not technologies, not factories, and certainly not capital--that give the most successful companies their unique advantages. As knowledge workers come to realize this, and see that the demand for their talent outstrips the supply, they are steadily wresting more and more of the profits from shareholders. This time the battle is between the sources of capital and the producers of value, and how it will end is far from clear. With this new battle, we're also witnessing a fundamental change in the political alignment of capital. The Left is now siding with "the common shareholder" against the well-compensated top tier of the labor pool. Shareholders seeing an unprecedented proportion of the return on their investments siphoned off to employees may well ask, Is there no end to it? The growing tensions between shareholders and managers cannot be ignored, and capitalism is at a crossroads--again.
Saturday, May 31, 2008. 08:13PM by Bret Carpenter
my wit escapes me again damn that the second time........
Saturday, May 31, 2008. 06:47PM by John Q Public
True, so. False, one part of the financial community pays off Bushit & Co INC to allow them to plunder. False, another part of the financial community pays off Bush & Co. to allow them to plunder. Another other fairy tales to tell us?
Friday, May 30, 2008. 04:25PM by Bret Carpenter
NAFTA was a clinton thingy......subprime crisis brought to us by the people......hedge fund liquidation brought by the new economy.
Friday, May 30, 2008. 03:30PM by Sara Ryan
I can't claim to know anything about Rorschach testing, however, the implications of this economy are a direct result of initiatives put in place by George W., and certainly he is well deserving of either.(assassination or impeachment).
Friday, May 30, 2008. 03:16PM by John Q Public
I guy I met on a bus said, if this situation was visualized in a Rorschach test and he was asked to describe what it suggests or resembles, the words impeachment or assassination would come to mind. What's that all about?
Friday, May 30, 2008. 10:37AM by Jesse Tayler
gosh, we've been over $4 here in CA for some months now! I had my first $50 tank, I just had my first $40 tank within the year. One thing for sure, it ain't going much down for long! I can only imagine what will happen if there is any major worldwide disruption of the flow - since it really is all about FLOW - you gotta keep that stuff moving and it can't stop or even slow much for a moment without change in price. It's nice to see how well Exxon is doing, they deserve more tax cuts so they can "explore" more.
Friday, May 30, 2008. 10:20AM by Bret Carpenter
Pucker your sphincter boys and girl this ride will not be enjoyable oh the agony of stagflation.