Today's gasoline prices, while higher than normal for this time of year, could end up looking cheap come springtime, says one prominent oil analyst.
Pump prices nationwide for regular unleaded could hit an average of $3.25 to $3.75 a gallon early next year on higher crude oil prices and a seasonal rise in gasoline demand, Tom Kloza, senior oil analyst with the Oil Price Information Service predicts.
"My view of 2011 suggests that we are looking at the second fuel price apocalypse of the 21st century, commencing during a time line that will begin with spring training and end when the Cubs are written off as a baseball non-contender," Kloza writes.
As for whether U.S. pump prices will reach an average of $3 a gallon before the end of 2010, he says it could go either way.
The national average retail price for regular unleaded held overnight at $2.98 a gallon, while the Houston average rose a fraction of a cent to $2.80 a gallon, according to AAA's Daily Fuel Gauge Report.
The national average has not surpassed $3 in more than two years, and has never hit the $3 mark in December. The all-time record is $4.11 a gallon, set in July 2008.
Prices will begin to rise early next year amid a surge of money moving into oil futures from investors anticipating the typical springtime rise in fuel demand, Kloza observes.
" The spring move will be helped in part by fundamentals, but money flow is the performance-enhancing drug for prices," he writes.
Thius guy can forecast the price of gasoline for next year but when it coms to the price for next week "he says it could go either way".
yeah I trust him.
It made me sick to pay $3.05 for some gas the other day. This is why I'm going to take the WRTA bus more frequently.
Some of the gas stations have already dropped the price a little bit.
The predictions are for much higher gasoline prices in the new year.
This past Tuesday - 21 DEC - on the way to Erie PA - the gas station on Wilson Avenue near Coitsville Road the gas was 2.89 a gallon and the line was very long - in Erie it was $3.05, it was also the same price in Dover, Ohio the day before. The station in North Jackson where I work gas was $2.99 a gallon - Prices sure vary. :laugh:
Gasoline was $3.09 at a station on Western Reserve Road on Christmas Day.
Natural gas is 50% the cost of gasoline and we have plenty of it.
COLUMBUS, Ohio - Ohioans are paying 9 cents more for gas this week after prices broke through the $3 barrier for the first time in more than two years.
A survey from auto club AAA, the Oil Price Information Service and Wright Express puts the state's average price for regular-grade gasoline at about $3.02 per gallon, up from $2.93 last Monday.
Last Wednesday, the average popped above the $3 mark for the first time since Oct. 11, 2008.
Some OPEC members have indicated the group doesn't plan to boost oil output in response to increased demand, which has been pushing fuel prices higher. Crude oil has jumped to near $92 a barrel.
In Ohio one year ago, motorists paid a lower $2.62, on average, for regular.
I passed a station this morning. Gas was $3.09
I passed the same station this afternoon. The gas was now $3.19.
Gas at the Salt Springs rd truck stop was $3.09 teh other day. It's $2.99 today.
This morning gas was $3.18 at Belle Vista & Mahoning.
With fuel prices in a temporarily lofty spot thanks to the holidays, it's hard to think of the price of a gallon of gas as a bargain, but according to the former president of Shell Oil, that's exactly what it is compared to what we'll see just one short year from now. While speaking with Platt's Energy Week Television, John Hofmeister said that he fully expects gas prices to be above $5.00 per gallon by the end of 2012. That stance puts Hofmeister firmly in the worst-case scenario club, though other analysts are barely any jollier in their predictions.
Tom Kloza, who serves as the chief oil analyst with Oil Price Information Service, believes that Hofmeister's predictions will come true, just not in the time-frame that the former Shell head honcho has predicted. Instead, Kloza says that he expects $5.00/gallon fuel to show up within the next decade. If so, we can probably expect to see a repeat of the financial shock that occurred when fuel prices shot up in mid-2008. The predictions are enough to make us a little queasy, so you have to really feel for our friends in Blighty – the UK recently saw gas prices spike to $7.30 a gallon. What will their prices be in 2012?
We are starting to see the tip of the inflation ice berg, caused largely by the Fed's attempt to stimulate the economy by flooding it with newly printed money. Inflation in many goods is sometimes not visible because prices are kept in check by new production method's and competition (think big screen TV's). Inflation usually shows up first in commodities that are limited, such as food and fuel. Generally rising commodity prices are fueled by speculators after some event signaling a coming shortage such as a large crop being destroyed by bad whether or a refinery put out of commission. Ominously, the price rise we are seeing now is a result of no such event. This may be inflation in its classic form, (too few goods, chased by too many dollars).
Of course progressives are happy at this turn of events. Obama said that he thought gas should be at least $4 a gallon. In fact many liberals relish high fuel prices, because it means they are closer to their dream of solar and wind power being able to compete with fossil fuels. That's what Cap and Trade was all about.
So don't look to Obama doing anything that would drive speculators away from oil, such as reauthorizing drilling in the Gulf or opening up any new lands to drilling. As you "fill up" remember who helped bring this on (Liberals, and Environmentalists).
Also, be prepared for the blame to be immediately placed on the oil companies. But remember; they don't control the price of gas, because if they did gas would never have come back down to $2.50 a gallon once they got it to $4. It is soley a supply and demand effect, driven by speculation.
Thanks for playing the blame game, Dan.......
Blame liberals for everything.....
Pigs can't fly....blame liberals
The moon isn't made of cheese.....blame liberals....
The Browns can't win....blame liberals.....
blah blaah blah......get a new script writer....dan
Sorry Dennis, but we aren't talking about flying pigs or moons made of cheese, we are talking about things that can directly be blamed on liberals and verified. Liberals do want gas prices to soar based on statements that they make. (Obama and Al Gore) And liberals have stopped us from drilling for oil and building refineries and nuclear power plants. Could there be any questions about that? You and your compatriots are beginning to reap what you have sown, and now you moan.
Oh Please, spare me your neo-con repeated bashing of liberals.....
your fat-cat neo-con oil companies are once again raping the american poor and middle class.....
it's as simple as that.......
Here again Dennis you are just spouting off liberal clap trap, and people are not buying it because it's so easy to go look this stuff up. If you google "oil company profits" you can see that their net profit margin is under 10%. Last year by the way, Google had a 25% net profit margin. On the hierarchy of profitability, the oil companies aren't anywhere near the top. Yep; as I said liberals and environmentalists = high gas prices. Sorry to trip you up with facts Dennis, but that's how it is.
Sure, Dan.....keep reading the funny papers for your facts......
Ok Dennis, so you don't agree with my facts. Let's see your proof. What do you claim the net profits are of Oil Companies.
Note to readers: If Dennis' response is anything other than a citation of what he claims regarding oil company profits, we should start to look upon anything he says as nothing more than mindless liberal babble.
Big five oil company profits for the first quarter of 2010 vs. first quarter 2009
BP's 2010 first quarter profits were $5.6 billion, a 135 percent increase over the first quarter of 2009. This profit was 50 percent higher than predicted by The Financial Times. Shell announced that its profits had risen by 49 percent since the first quarter of 2009. Chevron's profit was $4.6 billion, a 156 percent increase, while ConocoPhillips had $2.1 billion in profits. The world's largest private oil company, ExxonMobil, had a first quarter profit of $6.8 billion, which was 38 percent more than 2009.
Who cares about the increased gross profits, that just means they're selling more oil. What is left for the owners after they pay everyone. The question is, is what is their net profits, and is it excessive? You'll find that it is typically about the same as most companies, and certainly not any where near the highest.
(Reuters) - Chevron Corp (CVX.N) and Total SA (TOTF.PA) posted sharp gains in quarterly profit on Friday, the latest among the major oil companies to see their coffers swell on the strength in oil prices.
First-quarter crude prices were nearly double that of the quarter a year earlier, driving up profits for Exxon Mobil Corp (XOM.N), BP Plc (BP.L), Royal Dutch Shell Plc (RDSa.L) and ConocoPhillips (COP.N), which all reported earnings this week.
The huge growth in profits comes as scrutiny of the oil industry increases because of the disastrous oil spill in the Gulf of Mexico, which reached wildlife refuges on the Louisiana coast on Friday.
Chevron's profit more than doubled from a year earlier, in estimate-beating debut results under Chief Executive John Watson. The 30-year Chevron veteran is plotting a familiar course for the company, saying he wants to revive the refining business and stick with its pipeline of oil and gas projects.
"They're in good shape," Edward Jones analyst Brian Youngberg said of Chevron under its new leadership. "There's really no need to make any significant change."
Total's net profit rose 23 percent, matching estimates.
And when many citizens of the Mahoning valley become prosperous in the next few years because of our wealth in energy resources, will we be fat cats too?