$4-a-gallon gas likely this spring, analysts say

[Javaman]

http://www.cnn.com/2012/01/19/travel/spring-gas-prices/index.html

New York (CNN) -- Get ready to pay $4 or more at the pump this spring: Analysts say gas prices could hit a record high.

Fred Rozell, retail pricing director at Oil Price Information Service, says he expects the national average for a gallon of regular unleaded gasoline to reach $4 to $4.25 per gallon for regular gasoline when the market peaks, sometime in between April and early May.

Patrick DeHaan, senior petroleum analyst for GasBuddy.com, projects the national average could hit between $3.75 and $4.15 at some point in May.

Both predictions indicate that consumers could pay record high prices within the next few months. The all-time high for the national average, according to AAA, stands at $4.11, reached in the summer of 2008.

more at link...

----------------------

it's already going up, here in my corner of Austin, gas has risen 19 cents in the past week and a half.

[Gold Metal Flake]

1. The US is a major exporter of gasoline.

The $4+ spikes are artificial, but are allowed. USA! USA! USA!

[Spider Jerusalem]

15. The US is an exporter of gasoline...

because the US IMPORTS oil from elsewhere that is refined in the US and re-exported. The US is an IMPORTER of oil. US production of crude oil + natural gas liquids + ethanol is less than 8 million barrels per day. Total US imports are around 11 million barrels a day. Total US exports of refined products are 2.8 million barrels a day. See here: http://www.eia.gov/dnav/pet/pet_move_wkly_dc_NUS-Z00_mbblpd_w.htm

Spikes in fuel costs are driven by market forces and aren't artificial; global demand is driven by China and India and domestic oil prices in the US are affected by fluctuations in the US dollar relative to other currencies.

[matmar]

22. so you're saying there's no manipulation in the market...

That gasoline prices aren't kept artificially high in the US by the export of gasoline?

[Spider Jerusalem]

26. I'm saying there's no manipulation in the market.

You'd have to be economically ignorant to think that. Look at oil prices. (Brent, not NYMEX; NYMEX crude is not a good benchmark of world market price.) And how much is gasoline in other countries, again? Americans pay less per gallon than people in any developed country with an advanced economy. You are aware of that, right?

[oldhippie]

30. How does the export of gasoline manipulate the market?

How is it that companies exporting gasoline is manipulating the market? And how would the prices be kept artificially high? I don't understand your logic. Could you try to explain it to me? Thanks.

[matmar]

31. if demand is low....

And you have surplus gasoline, you export it to keep prices from dropping further.

Number one export out of the US is refined petroleum - if you're exporting gasoline at a time when demand is low, you' re manipulating the price of gasoline.

[oldhippie]

33. Oh, wow!

Now that's an economic principle I never learned in my MBA program. Thanks for that!

[uponit7771]

37. Supply demand is fundamental and simple, supply is LOWERED by exporting....don't know how

...else to explain it

[oldhippie]

40. Supply is LOWERED by someone buying it .......

What a concept!

In order to export it, someone must be demanding it. Of course the available supply is lowered when someone buys it. What else could happen? In a global economy supply and demand is not limited to one country.

[matmar]

39. They don't teach common sense.

Prove where I'm wrong.

[oldhippie]

42. Common sense

"if demand is low....And you have surplus gasoline, you export it to keep prices from dropping further."

==========================================================

If you export your surplus gasoline, then someone must have been demanding it. Or else you wouldn't have been able to sell it.

I think what you are trying to say is that by exporting some supply to satisfy external demand there will be an effect on domestic prices? Well, of course. That's the whole thing about supply and demand. That's not manipulation of prices, that's the market.

[matmar]

43. Explain a little more.....

Gas prices in the US rise when domestic demand is LOW and there are buyers off-shore

Gas prices in the US rise when domestic demand is high and there are buyers off-shore

When does the price of gas go down?

[FarCenter]

41. The US imports crude oil, refines it, and exports gasoline to the Carribean and Latin America

OTOH, we also import large amounts of gasoline from Canada and Europe to the Eastern US, where there is a lack of refinery capacity. At the moment, we export a little more than we import.

In any case, the number of barrels of refined product imports and exports are dwarfed by the import of crude oil.

There is not a surplus of gasoline. There is a surplus of refinery capacity on the Gulf coast that is being used to refine imported crude and export some of the product to the Carribean and Latin America.

[tridim]

2. Never forget, Big Oil promised "great pain for Obama" if he didn't approve the oil sludge line.

This is political manipulation by an American industry. It should be illegal.

[Proud Liberal Dem]

5. I wish that there was a way to show THEM "great pain"!

I would suggest that we wait to see what happens. They were talking about $4-5 gas last year and i believe that, except for maybe an exceptionally brief moment, I don't recall gas being over $4 even during the busiest times of the summer. I really wish that we had decent transportation in this part of the country (Indiana) though I have to drive a lot for my job. I will say this, though, the current crisis has taught me how to be more efficient and better manage my required travel.

[cherokeeprogressive]

24. Google lists 3 hits for your quote, and one of them is yours.

The other two are irrelevent. I've never heard that quote before. Can you point me in the direction of where you heard it? I think it's worth looking into.

[tridim]

27. Oil industry: 'Huge political consequences' if pipeline rejected

http://thehill.com/blogs/e2-wire/e2-wire/202359-oil-industry-keystone-rejection-will-have-huge-political-consequences-for-obama

Sorry for the paraphrase.

[cherokeeprogressive]

28. No problem at all. And thanks for following up.

If Big Oil can make a threat concerning a future event, and when that event happens the price of gasoline goes up, I think it's provable that there's price fixing going on.

Now if you could just convince me that President Obama supports medical marijuana for all who need it or better yet decriminalization... you and I could go places!

[yardwork]

38. I agree. This is payback.

[WI_DEM]

3. of course the big oil companies will do all they can to help defeat Obama.

[cherokeeprogressive]

25. So this has nothing to do with "peak oil" then? n/t

[Turbineguy]

4. You can always

get even by not stomping on the gas pedal when the light changes.

[Javaman]

9. or just take the bus...

like I do.

[Justice wanted]

6. How the freak can average americans afford to get to work.

we ended up giving up one of our cars just so hubby has enough money to have gas to drive 40 miles to work and back.


We owned both cars and can't afford to put gas in both.

[FirstLight]

7. gonna get worse and not get better

we are already at $3.89/gal here in ca/nv...it's $3.39 in the valley

you wanna see the apocalypse happen real fast? let's see what happens to commerce, shipping, etc when it hits $5...even $7 would cripple us in so many ways...

IMO i think the whole BS with iran is an excuse to play the oil markets...

[RebelOne]

8. Fortunately, I am now retired and do not have to travel to work and back home.

My car sits in the drive most of the time, except when I have to go shopping. Usually, a full tank will last me for a month. I guess I am luckier than you who have drive miles to work and home every day.

[matmar]

23. except your grocery bill will be higher. it all moves by truck

[SammyWinstonJack]

29. Exactly! nt

[KrazeeKrewe]

10. The real reason Gas Prices recently started going back up!

Gasoline prices had been falling for some time in response to the slowing world economy.

Until congress just let the ethanol tax credit expire at the first of the year.

So now you have to pay more taxes on your gasoline at the pump.

This also cut gasoline's market competition so gas prices will continue to rise.

This caused the price spike at the pump that took effect January 1, 2012.

Enjoy the higher prices & the continually rising prices.

[KrazeeKrewe]

18. Thanks for the warm welcome.

Sorry I can't afford the gas to bring the popcorn to you.

Could you tell me how to post pictures on this site?

[KrazeeKrewe]

20. No - But I have a Flickr Account

Can I link to pictures that are already posted online in other sites?

[KrazeeKrewe]

16. USA Today figured it out.

USA Today: End of ethanol subsidy could raise gas prices for 2012

[Marrah_G]

11. I'm glad I have a new smaller economy car

Thanks to my parent who sold me theirs for a good price, no interest. I replaced a big 2000 minivan gas guzzler (it was a good idea when I had 3 kids at home) with a smaller 2008 Kia Rondo. Still, it will tighten up my budget alot. Fortunately I have some small expenses I can probably get rid of to offset the higher costs.

The best thing is that I now live in an apartment where heat is included so I won't be freaking out over heating oil anymore.

This is really a scary thing though... they have cut heating assistance all over the place and with a rise in oil prices means great hardship for alot of people.

If anyone can afford to donate to that sort of charity I would urge them to do so.

Also, slightly off topic- if your supermarket has a donation box for your local food pantry dropping a can of tuna or a jar of peanut butter in every time you do a big shopping really helps. My mother volunteers at one on Cape Cod and she said this year has seen a huge rise in need and a drop in donations.

And even more off the topic....if you have old blankets being trown out or lying around collection dust, offer them to your local animal shelter.

[YellowRubberDuckie]

13. Normally when this happens, the price actually goes DOWN.

It's propaganda from the oil companies to try to get you to vote Republican.

[workinclasszero]

17. Oil companies are going to do their best to destroy the economy

and get the serial adulterer Newt elected prez.

First thing dictator Gingrich will do is green-light the oil pipeline from Canada, allow fracking anywhere and everywhere and nuke Iran starting WW3.

Oh and lock up any judge who disagrees with der fuhrer Newty of course.

Yep the capitalist war dogs will make tons of money with their boy Newt in office.

[Warren DeMontague]

32. In other news, Crack Prices to rise, Crack Addicts unhappy.

Demand endless supply of cheap crack as solution to crack problem.

[pampango]

34. They are dropping like a rock in southwest Ohio - to $3.01 here in town from $3.59 two weeks ago.

They will undoubtedly head up again, probably when the weather is nicer, but it's nice for the time being.

[Dreamer Tatum]

35. Paraphrasing Obama on gas prices: "Deal with it."

[Bandit]

36. I wish gas would get down to $4.00 a gallon..

We have been at $4.23 for at least six months or so.