The experts said prices would stay low for a couple of years, (beginning when the prices bottomed out), but I've noticed they keep creeping up. They're up $1 a gallon since they're lowest price...we were seeing $1.69, now they're $2.69...they just can't keep prices reasonable, can they? Soon they'll be back up to $3.50 or more...they just gotta keep pushing for those record profits, don't they?
What happened to the low gas prices?
- Thread starter grampi
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West Texas Intermediate crude bottomed at $26/barrel approx 6 months ago. It's up over 90% since then. That would translate into an approx 90% increase in gasoline. When the media is hyping oil prices headed down "forever," expect them to bounce. After a crushing 7-1/2 year drop in oil prices from $145 to $26, you have to expect a sharp and quick bounce back at some point to at least retrace 30-60% of that previous drop. The media and "experts" were all on the same side of the boat back in January. And at some point sentiment and technicals are just too extreme and trump fundamentals.
I'd sort of expect a 2-3 year bounce, that will have plenty of volatility. $26/B may have been the 7-8 year low. Commodities in general look to have been bottoming in 2015-2016, energy included. Inflation expectations seen to be on the horizon.
I got heating oil for $1.48/gal back a few months back, the lowest in years. Now back up to around $1.87. But I don't expect to ever get back down that low again.
I'd sort of expect a 2-3 year bounce, that will have plenty of volatility. $26/B may have been the 7-8 year low. Commodities in general look to have been bottoming in 2015-2016, energy included. Inflation expectations seen to be on the horizon.
I got heating oil for $1.48/gal back a few months back, the lowest in years. Now back up to around $1.87. But I don't expect to ever get back down that low again.
Originally Posted By: eljefino
Did you buy stock in the oil companies during the off year? This is America, you can share in the wealth or just complain about it.
VGENX is bouncing back for me.
Exactly
Its those evil speculators at it again..lol
The cheaper the gas the more people on the road the more delays...
Let it go back up to $4+
Did you buy stock in the oil companies during the off year? This is America, you can share in the wealth or just complain about it.
VGENX is bouncing back for me.
Exactly
Its those evil speculators at it again..lol
The cheaper the gas the more people on the road the more delays...
Let it go back up to $4+
Around here they are still 30 cents per gal lower than last year.
GasBuddy Blog -- It's official: according to the U.S. Energy Information Administration, implied gasoline demand hit nearly 9.4 million barrels per day in March, the highest ever level for the month, and the highest since August, 2015.
Here's part of the reason. And I remember some "experts" predicting gas would drop below a dollar a gallon and I said, yeah, right.
Here's part of the reason. And I remember some "experts" predicting gas would drop below a dollar a gallon and I said, yeah, right.
Gas is still very reasonable around my area. If you can't afford a gallon of gas at $3 bucks a gallon than you cant afford to drive and should take the bus.
Originally Posted By: Al
Originally Posted By: eljefino
Did you buy stock in the oil companies during the off year? This is America, you can share in the wealth or just complain about it.
VGENX is bouncing back for me.
Exactly
Its those evil speculators at it again..lol
The cheaper the gas the more people on the road the more delays...
Let it go back up to $4+
Written by somebody who must not do any amount of appreciable driving.
Originally Posted By: eljefino
Did you buy stock in the oil companies during the off year? This is America, you can share in the wealth or just complain about it.
VGENX is bouncing back for me.
Exactly
Its those evil speculators at it again..lol
The cheaper the gas the more people on the road the more delays...
Let it go back up to $4+
Written by somebody who must not do any amount of appreciable driving.
Our XOM is doing okay. It goes up and then it goes down. And then up again.
Returns a consistently decent dividend, though.
Won't be too long before they're brewing up winter blend!
Returns a consistently decent dividend, though.
Won't be too long before they're brewing up winter blend!
Ha...this is just the start...
Those who want it up...your wish will be granted and more!
Expecting closer to five bucks in a few years. There is a reason small/mini cars are still around! Sales will rebound soon...not doubt there.
One thing is for sure-expect everything to go up quite a bit soon.....
Those who want it up...your wish will be granted and more!
Expecting closer to five bucks in a few years. There is a reason small/mini cars are still around! Sales will rebound soon...not doubt there.
One thing is for sure-expect everything to go up quite a bit soon.....
Heh heh I drive a Transit for work. Some days, it is over 200 miles. under the speed limit because the GPS spits out nasty grams for normal driving. It has ruined recreational driving for me. Now-a-days, a good week end is one where the cars never leave the driveway.
Originally Posted By: daves87rs
Ha...this is just the start...
Those who want it up...your wish will be granted and more!
Expecting closer to five bucks in a few years. There is a reason small/mini cars are still around! Sales will rebound soon...not doubt there.
One thing is for sure-expect everything to go up quite a bit soon.....
What are you trying to say? Are you a dooms dayer? The U.S. economy will not support $5 gas...prices near that have been tried before and they never stay there long...
Ha...this is just the start...
Those who want it up...your wish will be granted and more!
Expecting closer to five bucks in a few years. There is a reason small/mini cars are still around! Sales will rebound soon...not doubt there.
One thing is for sure-expect everything to go up quite a bit soon.....
What are you trying to say? Are you a dooms dayer? The U.S. economy will not support $5 gas...prices near that have been tried before and they never stay there long...
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Not manipulation as some suggest, it's market forces. When crude drops tolow prices, producers would rather wait as opposed to possibility losing money on the more costly means of extraction. If your costs of production exceed the $26/bbl, you won't be inclined to produce that oil.
When prices go up, producers who left the market now have an incentive to return.
Many of the tar sands amd shale operations shut down or cut back due to low prices relative to production costs.
Nobody watching the market expected prices to stay low. It was unsustainable, just like many high prices.
When prices go up, producers who left the market now have an incentive to return.
Many of the tar sands amd shale operations shut down or cut back due to low prices relative to production costs.
Nobody watching the market expected prices to stay low. It was unsustainable, just like many high prices.
I just paid $2.47 today in So Cal. It has stayed pretty low here.
Originally Posted By: grampi
The experts said prices would stay low for a couple of years, (beginning when the prices bottomed out), but I've noticed they keep creeping up. They're up $1 a gallon since they're lowest price...we were seeing $1.69, now they're $2.69...they just can't keep prices reasonable, can they? Soon they'll be back up to $3.50 or more...they just gotta keep pushing for those record profits, don't they?
The experts really. Ever notice the so called experts are usually always wrong? It is not a new thing. The mainstream media is why so many people in the country are uninformed. How many people read Oil university and regurgitate the info as fact?
The experts said prices would stay low for a couple of years, (beginning when the prices bottomed out), but I've noticed they keep creeping up. They're up $1 a gallon since they're lowest price...we were seeing $1.69, now they're $2.69...they just can't keep prices reasonable, can they? Soon they'll be back up to $3.50 or more...they just gotta keep pushing for those record profits, don't they?
The experts really. Ever notice the so called experts are usually always wrong? It is not a new thing. The mainstream media is why so many people in the country are uninformed. How many people read Oil university and regurgitate the info as fact?
If rising gas prices enrages you why not try a bike? Or public transportation. The majority of people can commute by train/bus but choose to drive. It's the American way.
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