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$1.00 For Gallon Of Gasoline Soon.  
User currently offlineFXramper From United States of America, joined Dec 2005, 7196 posts, RR: 85
Posted (5 years 7 months 4 weeks 1 day 6 hours ago) and read 2618 times:
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Per the Gulf Oil CEO, he sees oil at prices in the next few months that would put a gallon of 87 octane at $.99 a gallon. Will this help your monthly budget? How would this effect the US economy? Still a second stimulus from Obama? A record number of lost jobs in 34 years was reported today by the government.

Source: Bloomberg and MSNBC both reported.

31 replies: All unread, showing first 25:
 
User currently offlineOldman55 From United States of America, joined Jan 2004, 1524 posts, RR: 32
Reply 1, posted (5 years 7 months 4 weeks 1 day 6 hours ago) and read 2610 times:

That would be wonderful if it really happens; but since it was only a few months ago that oil was supposedly headed for $200 a barrel, I believe this is just another wild guess. PS I hope fuel oil prices take the same dramatic drop as that is what our house is heated with.


too bad most of us get too soon old and too late smart
User currently offlinePPVRA From Brazil, joined Nov 2004, 8942 posts, RR: 40
Reply 2, posted (5 years 7 months 4 weeks 1 day 6 hours ago) and read 2572 times:

$25bbl forecast:

http://www.bloomberg.com/apps/news?p...7&sid=aIUEV3pCOJeo&refer=worldwide

It's certainly a relief given the economic times.



"If goods do not cross borders, soldiers will" - Frederic Bastiat
User currently offlinePHLBOS From United States of America, joined Mar 2004, 7511 posts, RR: 24
Reply 3, posted (5 years 7 months 4 weeks 1 day 5 hours ago) and read 2561 times:

Quoting FXramper (Thread starter):
Will this help your monthly budget?

Does a duck quack? 

Quoting FXramper (Thread starter):
How would this effect the US economy?

It would have a similar to what happened the last couple of times the price fell below $1/gallon (1986 & 1999); i.e. it definitely wouldn't hurt.

Quoting Oldman55 (Reply 1):
it was only a few months ago that oil was supposedly headed for $200 a barrel,

I still remember the $5/gallon predictions made during the 1970s for 1985.

Memo to airlines: Start buying fuel hedges NOW!

[Edited 2008-12-05 12:14:42]


"TransEastern! You'll feel like you've never left the ground because we treat you like dirt!" SNL Parady ad circa 1981
User currently offlineDougloid From , joined Dec 1969, posts, RR:
Reply 4, posted (5 years 7 months 4 weeks 1 day 5 hours ago) and read 2541 times:

E-10 was $1.51 here this morning and I told the Dragon Lady

"Conga line at $1.49!" Join me as we shake our gas cans around the pump.

It's a happy thought.


 Wink


User currently offlineSrbmod From , joined Dec 1969, posts, RR:
Reply 5, posted (5 years 7 months 4 weeks 1 day 5 hours ago) and read 2529 times:

I know my employer will like it, provided that diesel goes to under $2 a gallon in conjunction with this, as one of the four vehicles in our fleet is diesel and our fuel surcharge is based off of the price of diesel. Myself, I'm still having to figure out how much to prepay when I fill up my work vehicle (very few stations around here don't require you to prepay), as a few months back, it was costing me $80-100 to fill up (I usually wait until I'm under a quarter tank to fill up), now, we're talking $40-45.

It really doesn't effect my personal budget, as I drive my car a handful of times a month, so a full tank of gas lasts me quite a while.


User currently offlineAloha73G From United States of America, joined Jul 2003, 2356 posts, RR: 4
Reply 6, posted (5 years 7 months 4 weeks 1 day 5 hours ago) and read 2526 times:

Still ~$2.40 here in Honolulu......I hope it makes it back to the $1.xx range.

I remember $1.69 here when the mainland was at $0.99. $1.69 would be AWESOME!!!

I thought we'd never see "cheap" gas ever again.

As for the Airlines hedging......I sure hope they do.....if they didn't learn their lesson last time........

-Aloha!



Aloha Airlines - The Spirit Moves Us. Gone but NEVER Forgotten. Aloha, A Hui Hou!
User currently offlineDocLightning From United States of America, joined Nov 2005, 19417 posts, RR: 58
Reply 7, posted (5 years 7 months 4 weeks 1 day 3 hours ago) and read 2412 times:

Don't get too used to it. It won't last.

In the long run, I expect gasoline over the next decade to average out to about $3-$3.50 per gallon. It'll be $1.50 for a while, then swing up to $4.50, then back down, etc.


User currently offlineGeekydude From China, joined Apr 2004, 401 posts, RR: 2
Reply 8, posted (5 years 7 months 4 weeks 1 day 2 hours ago) and read 2366 times:

I have mixed feelings. In the short term it's definitely a relief; in the long run, though, it can only make people more addicted to oil which will make the next oil shock even more painful.


FLIB 152 'heavy' low approach...Caution wake turbulance!
User currently offlineDoug_Or From United States of America, joined Mar 2000, 3402 posts, RR: 3
Reply 9, posted (5 years 7 months 4 weeks 1 day 2 hours ago) and read 2359 times:



Quoting Geekydude (Reply 8):
I have mixed feelings. In the short term it's definitely a relief; in the long run, though, it can only make people more addicted to oil which will make the next oil shock even more painful.

My thoughts exactly. We all just had the opportunity to learn some very expensive lessons. Weather we take anything away from the experience of $4 a gallon gas (in the US) or go back to our old ways will be telling.



When in doubt, one B pump off
User currently offlineNIKV69 From , joined Dec 1969, posts, RR:
Reply 10, posted (5 years 7 months 4 weeks 1 day 2 hours ago) and read 2345 times:



Quoting FXramper (Thread starter):
Per the Gulf Oil CEO, he sees oil at prices in the next few months that would put a gallon of 87 octane at $.99

What a genius seeing it's already probably 1.69 in NJ and other places.

Quoting DocLightning (Reply 7):
In the long run, I expect gasoline over the next decade to average out to about $3-$3.50 per gallon. It'll be $1.50 for a while, then swing up to $4.50, then back down, etc.

Doubt it, with people buying more fuel efficient cars and learning from this last nightmare to conserve I think we won't go over low 3s for a long time.


User currently offlineGeekydude From China, joined Apr 2004, 401 posts, RR: 2
Reply 11, posted (5 years 7 months 4 weeks 1 day 2 hours ago) and read 2329 times:



Quoting NIKV69 (Reply 10):
Doubt it, with people buying more fuel efficient cars and learning from this last nightmare to conserve I think we won't go over low 3s for a long time.

Hopefully that will be true. But the problem is that it's not just the US that's using oil, unless there's a fundamental change in technology and people's mentality, the moderate conservation efforts by the US can be easily offset by the increase in demand elsewhere, such as India and China, with their rapid growth and huge population, all of whom are trying to get rich and emulate the American way of life.

As Tom Friedman puts it in his latest book "Hot, Flat, and Crowded", Doha and Dalian, two cities you probably have never heard of, will eat your energy savings for lunch.



FLIB 152 'heavy' low approach...Caution wake turbulance!
User currently offlineYooYoo From Canada, joined Nov 2003, 6057 posts, RR: 51
Reply 12, posted (5 years 7 months 4 weeks 1 day 1 hour ago) and read 2315 times:

It's $0.74 /L just east of YYZ and i bet if you go further east on the 401 it'll be at or below $.70/L


I am so smart, i am so smart... S-M-R-T... i mean S-M-A-R-T
User currently offlineSkySurfer From United Kingdom, joined Sep 2004, 1136 posts, RR: 12
Reply 13, posted (5 years 7 months 4 weeks 1 day ago) and read 2264 times:

69.7cents CDN here in Kingston, Ontario.......hoping it will go lower seeing as the price of a barrel has dropped, but of course stations are trying the rise to 80 cents a litre every so often to see if anyone will follow. It lasts all but 24 hours b4 it's back to where it should be but i have to admit i'm hesitant seeing gas in the 60's again, because i know it won't last and as soon as the financial markets pick up, as soon as people start making long trips again en masse we'll see fuel rise very quickly and we'll all be complaining again. The last time i saw gas in the 60 cent range was 1999 on holiday over here, and although i look forward to paying next to nothing for gas in Jan/ Feb i hate to think what Mar/Apr/May might bring.

Happy fillups!

Stu

ps, off topic a lil bit, but consider this.....it isn't just airlines losing money over hedging fuel, it's places like greenhouse operations too that locked in their prices at a set rate for a year or two. If the price of heating fuel falls below that locked in rate, then you've just shafted yourself!



In the dark you can't see ugly, but you can feel fat
User currently offlineLTBEWR From United States of America, joined Jan 2004, 13040 posts, RR: 12
Reply 14, posted (5 years 7 months 4 weeks 1 day ago) and read 2245 times:

I wish that the Federal and State governments would take advantage of the cheap prices to somewhat limit demand and get very badly revenue and increase gas (not diesel) taxes. Part of the additional revenue would go toward road building and repair and part would keep up mass transit subsidies. That would help keep up construction employment, make the badly needed repairs to bridges and roads to save lives and congestion and limit higher mass transit prices to help the usual working class and the poor who tend to use them. That would also help each state's as well as the national economy.

I am not talking about a lot of money immediatly, perhaps on the order of 10 cents by the feds and 10 cents by the states (a total of 20 cents/gallon) and set up a schedule to raise it gradually to a total of 50 cents a gallon. Yes, I like $1.49/gallon gas here in New Jersey, and for some that is a balnace out of the $ 4.00 gallon we paid this summer, but if it is too low it encourages waste.


User currently offlineDougloid From , joined Dec 1969, posts, RR:
Reply 15, posted (5 years 7 months 4 weeks 22 hours ago) and read 2186 times:

It's there-

E10 is $1.49 as of this afternoon.

$1.25 baby-comin atcha.


User currently offlineFXramper From United States of America, joined Dec 2005, 7196 posts, RR: 85
Reply 16, posted (5 years 7 months 4 weeks 20 hours ago) and read 2141 times:
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Do it.


User currently offlineSTLGph From United States of America, joined Oct 2004, 9303 posts, RR: 25
Reply 17, posted (5 years 7 months 4 weeks 19 hours ago) and read 2117 times:



Quoting Doug_Or (Reply 9):
we take anything away from the experience of $4 a gallon gas (in the US) or go back to our old ways will be telling.

personally, i'm finding myself driving a lot less with cheaper gas than with expensive gas. i'm sure in part, a great deal of it goes to the fall it's no longer summer and i'm not going somewhere almost every weekend.



Eternal darkness we all should dread. It's hard to party when you're dead.
User currently offlineDocLightning From United States of America, joined Nov 2005, 19417 posts, RR: 58
Reply 18, posted (5 years 7 months 4 weeks 14 hours ago) and read 2070 times:

Welp, there went those calculations I put into buying that Prius.

I don't regret it. I'm still contributing less to CO2 emissions than I was in that Jeep.

But still, *throws up hands*.


User currently offlineRayChuang From United States of America, joined Jun 2000, 7993 posts, RR: 5
Reply 19, posted (5 years 7 months 4 weeks 11 hours ago) and read 2018 times:

One of the reasons I bought a Honda Civic HX CVT coupe way back in 1998 was because I feared that any price hike would make it less practical to drive my car around. Good thing I did, especially given last summer's ridiculous pricing of US$4.32/US gallon for 87 pump octane unleaded fuel I experienced.

Anyway, my current car is finally in need of a replacement, and I am going to get either a new 2009 Honda Fit or the upcoming 2010 Nissan Cube to replace it.  Smile


User currently onlineB6JFKH81 From United States of America, joined Mar 2006, 2878 posts, RR: 7
Reply 20, posted (5 years 7 months 4 weeks 8 hours ago) and read 1971 times:



Quoting FXramper (Thread starter):
Will this help your monthly budget?

Yes...and no. When I bought my car, prices were increasing, and I budgeted for $3.00/gl when estimating how long it will take for the extra cost of the hybrid engine to "pay itself" off based on standard fuel consumption, etc. My fuel consumption was cut a lot (went from 2 fill-ups per week to 1), but if gas drops a lot, then the actual savings I get don't add up as quickly so the extra couple of thousands that were layed out to support the hybrid engine compared to a regular engine in the car aren't paying for themselves as quickly.  eyebrow 

Don't get me wrong, I like only spending a few bucks to fill up my car, and it WILL help me financially, but some of my largest investments were based on higher fuel prices.

Quoting FXramper (Thread starter):
How would this effect the US economy?

Available cash should increase as expenses decrease, making buying extra goodies more feasible. However, with gas this low I can't help but to worry that people have not learned a lesson and will go back to their fuel-burning crazy lifestyle. "Gas is cheap...lets buy a Hummer." "Oil is cheap...crank up the heat so we can just wear undies."  banghead 

~H81



"If you do not learn from history, you are doomed to repeat it"
User currently offlineItsjustme From United States of America, joined Apr 2004, 2768 posts, RR: 10
Reply 21, posted (5 years 7 months 4 weeks 2 hours ago) and read 1877 times:

Maybe some of you economists can help me see the light here. Not to look a gift horse in the mouth but, what has changed so drastically in such a short amount of time that has resulted in the price of a barrel of oil to plummet? I find it hard to believe that our oil consumption, or possible decrease of, has impacted the price of oil so dramatically.

User currently offlineHOOB747 From United States of America, joined Nov 2006, 438 posts, RR: 0
Reply 22, posted (5 years 7 months 4 weeks 1 hour ago) and read 1870 times:



Quoting DocLightning (Reply 18):
don't regret it. I'm still contributing less to CO2 emissions than I was in that Jeep

If you are naive enough to think that driving a Prius, as opposed to anything else on the road, will make any dent in the CO2 emissions put out by the planet last year, please let me know how much you must drive to make the impact you seek. A trillion miles?  cheeky 

It is a big planet. And the rest of the world has got your fuel consumption more than covered.



747 Number One Fan from U.S.A
User currently offlineN867DA From United States of America, joined May 2008, 1001 posts, RR: 0
Reply 23, posted (5 years 7 months 4 weeks 1 hour ago) and read 1870 times:

Is it just me or do these so-called analysts have no clue what the hell is going on? Back in July every 'pundit' on the television warned us about "$5 gas by Christmas" and even told us to brace for oil in the $200-400 range. The talked about the end of cheap oil, how the price of gasoline will never fall below $3 again, blah blah blah.

Now these same analysts have the guts to openly say they think oil will hit $1.00 soon? Just what are they doing? It seems like they're just looking at the price of oil for the last two months and linearly extrapolating. Sure, gas could go down to $1.00. It can even go down to $0.35. It could even go to $7.89!

I'm sure their methods are a bit more complicated but one has to admire the way they can suddenly change tunes and not get called on it.



A nation turns its lonely eyes to you
User currently offlineGeekydude From China, joined Apr 2004, 401 posts, RR: 2
Reply 24, posted (5 years 7 months 4 weeks 1 hour ago) and read 1863 times:



Quoting Itsjustme (Reply 21):
Maybe some of you economists can help me see the light here. Not to look a gift horse in the mouth but, what has changed so drastically in such a short amount of time that has resulted in the price of a barrel of oil to plummet? I find it hard to believe that our oil consumption, or possible decrease of, has impacted the price of oil so dramatically.

There are a few factors I can think of. The most important one is the global economic slowdown. Germany is recession, Japan is in recession; and just recently the US is officially in recession; the growth rate of emerging countries like China has faltered big time as well. So here we are talking about the 4 largest economies in the world not doing very well. Therefore, the projection of oil demand in the future has been drastically reduced. Also keep in mind that the oil market is quite in the parlance "inelastic", meaning a moderate upward pressure on demand will drive up the price significantly; but the converse is also true, a drop in the predicted future demand can lead to a sharp decrease the price as well.

The current financial crises compounded the mess without a doubt. With confidence gone in the financial sector, investors have started losing faith in the financial instruments they hold in hands. Large investment banks and their hedge funds, for instance, have started dumping the oil futures contract, further driving down the price oil. So such hoarding behavior prevailed in the previous couple of years has largely gone out of fashion.

In addition, you have people getting tired of paying an arm and a leg for energy, which has resulted in many people switching to a greener lifestyle. This may have made the oil market a bit uneasy too.

Of course they maybe a variety of other reasons at play as well. But the consensus seems to be that the last oil shock was brought about by demand, in contrast to the ones happened in the 70"s which were caused by suppliers disrupting output. Therefore, the current drop in oil prices is actually a reverse demand shock at work. Remember, it's not just the current consumption that determines the price of oil, but also the projection and the growth of projected demand are very, if not more, important contributing factors too.

My 2 cents in a nutshell.



FLIB 152 'heavy' low approach...Caution wake turbulance!
25 Asuflyer05 : Hopefully it spurs consumer confidence.
26 KaiGywer : Will they take a credit card as pre-payment? I know of stations around here that require prepay at night. They will let you leave your card at the co
27 MAH4546 : I would get used to cheap gas for a while - all one needs to do is look at history. History repeats itself, and gas has reached huge peaks, like in 19
28 STT757 : Absolutely, it's literally putting money in my pockets. These lower fuel prices are basically a tax cut.
29 PHLBOS : Although I am not a supporter of any increased/higher taxes in general, if push came to shove; the given the pick your poison choice, IMHO, a gas tax
30 RussianJet : It depends - not if it has a sore beak. I pay around $2 per litre at the moment. You US residents really don't know you're born when it comes to payi
31 EA CO AS : Every major recession over the past 30 years has been preceded by an oil shock. The recession in 1991 had crude skyrocketing to (then) unheard-of lev
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