Posted on 05/08/2007 8:24:39 AM PDT by Sleeping Beauty
DETROIT — Gas prices have spiked to a record nationwide average of $3.07 per gallon, according to the Lundberg Survey of 7,000 stations nationwide.
The nationwide average for midgrade gas was $3.18, and premium was $3.28. Analysts blame the rise on higher consumption coupled with reduced output by American refineries; they also note that there are signs that rising pump prices may be peaking.
There is some discrepancy among the groups that track gas prices. Lundberg, an independent and well-respected market research company, said prices have reached a record. But the AAA Daily Fuel Gauge Report pegged the average U.S. price of gasoline at $3.03 per gallon on Monday morning, 3 cents short of the all-time high reached in September 2005, after Hurricane Katrina.
Meanwhile, crude oil futures are declining. They ended last week at $61.93 per barrel on the New York Mercantile Exchange, about $4.50 lower than their eight-month peak a week earlier. Retail prices generally lag the futures market, so consumers often end up paying more for gas as futures prices drop.
What this means to you: The end is probably not in sight for sticker shock at the pump.
So, is this going to affect the way you drive?
Are you thinking about changing cars?
Do you commute far or do you live near your work?
Will oil companies make record profits again this year?
For Bonus Points -- Riddle me this:
Why do gasoline prices go up then crude prices drop? And why do gas prices go down when crude prices go up?
You just gotta do what ya gotta do... maybe I have to cut out a third double-cheeseburger for lunch, but I won't be screaming about it.
Gas refinery capacity has more effect on gas prices than crude oil prices. Liberals and environmentalists block every attempt to build more gas refineries and then whine when gas prices go up.
This type of response has been very successful in harnessing the MSM into action.
So, is this going to affect the way you drive?
I guess I won't be doing triple digits anytime soon.
Are you thinking about changing cars?
I've thought about it, but for me to switch from what I'm driving now to something that would get moderately-improved gas mileage would be prohibitively-expensive, especially since what I'm driving now is less than 3 years old.
Will oil companies make record profits again this year?
I sure hope so since it's my hedge against my shorts getting caught in the wind.
Why do gasoline prices go up then crude prices drop? And why do gas prices go down when crude prices go up?
Because it's not a direct relationship. Specifically in this case, it's a combination of planned (thanks to the 47 flavors of Algore/Whitman Memorial RFG and the switch between the winter and summer flavors) and unplanned (domestic refinery fires and European refinery strikes and shutdowns) that jacked up the gas prices.
I drive less than 500 miles a week so it really isn’t an issue with me...:^)
“According to Bloomberg and other business news sources, we will possibly see $4.00 gas this summer.
So, is this going to affect the way you drive? “
Nope.
“Are you thinking about changing cars? “
Nope.
“Do you commute far or do you live near your work? “
Live relatively close, ten miles away.
“Will oil companies make record profits again this year? “
I hope so, thats what they are in business to do.
“For Bonus Points — Riddle me this:
Why do gasoline prices go up then crude prices drop?”
Because of the lag time between obtaining the crude, and the finished product coming out of the nozzle into your vehicle.
” And why do gas prices go down when crude prices go up?”
Again, because of the ‘lag time’.
My tires were a few pounds low. I aired them up so the increased mileage means I’ll not notice the latest price increase. If the prices rise any more, I’ll just not accelerate as hard.
Replaced my 45 year old oil furnace with a modern one
Replaced by 20 year old hot water tank
Went from a Pathfinder SUV to Toyota Avalon
Lights are mostly compact florescent
Just upgraded my 50 year electric box (probably doesn’t help)
Changed jobs to one 5 miles away
Smarter about traveling and running errands
Wow if only I could pay 3.18 a gallon I filled up yesterday at 3.79.
I need to lose some weight anyway. Walk more, eat less.
everyone talks about how no one wants a refinery in their back yard and thus we cannot refine enough oil.
PUT ONE IN MY BACKYARD!! PLEASE!!!
The unemployment rate is very high in my area and i’m pretty sure that EVERYONE would be alright with more jobs in our area!
by the way I am in the process of getting a car right now that has better gas milage and i’m not driving as much.
The gas prices affect every aspect of my life and not for the better.
I can’t afford to move or buy a more efficient car. So I guess I’ll pay whatever the monopoly demands I pay.
Thanks Steve, I was hoping for an answer like that. I was thinking about going long on the oil companies, as well.
I plan to not buy any gas on May 15th - that’ll learn’em good! <:-)
Hmmm, let's see ... could it be that they are two separate commodities and that the cost of one is only a single piece of the supply/demand dynamics of the other.
Go to the head of the class tx_eggman.
Bye the bye Sleepy, there are a higher than usual number of US refineries in maintenance / turnaround mode at the present time ... constricting supply. When they come back things should ease up a bit:
Refinery Maintenance, Planned and Unplanned Turnarounds: There have been a larger-than-normal number of refinery shutdowns in the last couple of months, both planned and unplanned. U.S. refinery turnarounds shut down 1.5 MMBpd of capacity last month. Maintenance projects have curtailed 500 MBpd so far this month. Although not directly related to refinery turnarounds, the switchover from winter to summer grades of gasoline requires operational changes to meet summertime demand. As a result, there has been a large drawdown in winter grades of gasoline to make storage space available for summer grades. In addition, refiners focused on producing heating oil at the expense of gasoline production because of recent cold snaps in the Northeast.
Last fall I got a 300 gallon farm-style gas tank and got it filled right near the bottom for 2.01/gallon. So...all summer I’ll be paying 2.01 for my gas.
Whoa, Banana -- you don't mess around. I am impressed!
Since I have a Suburban to drive my 5 boys and my wife and I, I would need 2 cars that get 40 miles per gallon instead of one that gets 20. So I’m not changing. I guess the libs are right - big families are bad for the environment.
Is there a problem with gasoline going “stale” after a few months?
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