Gasoline to hit $3 a gallon: wanna make a bet?

Reuters ^ | Fri Aug 5, 2005 1:53 PM ET | Richard Valdmanis

[newgeezer]

NEW YORK (Reuters) - The largest sports betting site on the Internet expanded Friday into the energy arena, offering gamblers a chance to bet on soaring U.S. retail gasoline prices.

"Record gasoline prices are affecting everyone, so why not let people bet on it?" said PinnacleSports.com spokesman Kyle Fratini. "We've been thinking about this for months."

The online betting site, which normally focuses on mainstream sports like football, basketball and soccer, is giving gamblers a chance to bet on whether gasoline will reach $3.00 a gallon in New York or Los Angeles by the end of the year, with 30 to 1 odds.

On Friday, average gasoline prices in Los Angeles were a lofty $2.616 a gallon, up more than 20 percent from last year and among the highest in the nation, according to the AAA's daily survey.

AAA's survey will be used by PinnacleSports.com as the benchmark for its bets.

Nationwide, gasoline prices are zipping along just over $2.30 a gallon, within 2 cents of the record peak hit July 14, as oil refiners are forced to pay up for record world crude oil prices of over $60 a barrel.

Also up for wager: Will the average price of gas in the United States reach $2.35 per gallon by Labor Day? Will the average price of gas in the U.S. reach $2.40 per gallon by the end of the year?

Fratini said maximum bets on gasoline will be around $500, though the site allows for bets in the thousands of dollars for sports like football.

[Wuli]

I am not talking about the consumer "core" inflation. I'm talking about the overall inflation rate and if retail at-the-pump prices had gone up in the last twenty five years as much as overall prices have, $3.00/gallon would be cheap. It has been politics, not economics that have kep oil prices down.

[suzyq5558]

Lately I've been seeing a lot of SUVs on the side of the road with For Sale signs on them. When gas hits $3.00 a gallon the For Sale signs will change to "Free To A Good Home" signs

Here in my little part of the world(Oregon)Ive seen a truck for sale every other driveway on the road out to my parents house last week. big ole 4x4's SUV'S,and lots of boats too. I had started noticing this about a month ago. my hubbies gas bill is now at 200.00 a month just to drive to work so Ive cut way back on my driving. my inlaws on the other hand still tool around in thier big ole SUV complaining all the way t othe gas station yet not planning on downsizing any time soon.

[markman46]

Calabasas is in the San Fernando Valley, east of Woodland Hills and south of Canoga Park. If you are familiar with the 101 Freeway(Ventura Freeway) Calabasas is off of the Ventura Freeway.

But But But... going north on the 101 Calabasas is west of woodland hills. you turn left to go to calabasas and right on valley circle. to woodland hills, or has something changed

[Enterprise]

103 Yes +378

104 No -428

Odds are dropping fast, better get your bet in!

link

[Wuli]

You are right in that avaliable electric power is not uniform and not uniformly available. But, recent national figures indicate an "average" of 16 hours a day, which is an increase from a year ago.

In Sadaams time, there were places that never had electricity for sometimes weeks on end and often most "shortages" were driven by his political considerations.

[Wuli]

No, I'm paraphrasing Adam Smith, but if you want a quote on the subject from Hillary or Kerry then you want to know how much they'll tax the rest of us to keep you in cheap gas.

[jec41]

what the administration can do is open the SPR to try and at least take the speculative component out of the oil price.

The SPR contains ~ 1 billion barrels of oil. We use ~ 20 million barrels a day. 60% of that is imported which is ~12 million barrels day. We would use the whole SPR in 83 days and and what we have been importing would quickly be brought by the rest of the world. The world uses 84 million barrels a day and a billion barrel supply is only 12 days. The SPR would quickly be gone and the 1-2 dollar decrease per barrel would quickly go back up without the reserve. Even 6 billion barrels from An-war would only last 300 days and it would take 20 years to get it all on the market. We have a supply problem and its not going away soon..

[absolootezer0]

no.. you'll see a lot more biodiesel suvs. i know that the liberty and touregs both have a diesel option, more will surely come.

[Wuli]

Well, no, HERE is what we should do:

1. Let the market set the oil price.
2. Let energy companies invest in the most profitable investments and
3. If they don't make investments that increase U.S. supply then
4. Others will invest in "alternatives" that begin to price out oil, because higher priced oil will make such investments good for the investors.

Capital markets are no different than other markets, investors will come in when the long term ROI is right, and when they do they will support the technologies that respond to problems presented by current conditions.

Just quit being nervous nellies, get the government out of the way and let the markets work.

[Hoboto]

Warning: You might find that some people can be extremely sensitive about this. ;O)

The truth hurts. They'll come around. :-)

[traumer]

That's a GREAT cartoon ! :o)

[Wuli]

Too bad.

[Lx]

Actually, I kind of like the idea of using up other countrie's resources first. We do need to have our own sources though in case they stop supplying or jack up the prices.

[KevinDavis]

I agree.. I'm not nervous at all. It is one law that some people here forget: Law of Supply and Demand. There is a demand + low supply = high prices..

[Tolerance Sucks Rocks]

The only relieve, although temporary, is to remove all taxes on gasoline and fix prices by Federal law.

By fixing prices, you run the risk of a gasoline shortage. You may get gas at lower prices, but how much of it you could get would be anybody's guess.

[KevinDavis]

Well I plan on getting a suv.

[reagan_fanatic]

Until people realize that driving an SUV with 1 or 2 people in it is not exactly "fuel efficient", gas prices will continue to remain high.

The typical oversized SUV driver in my area is a 25-45 y.o. woman about 5'4" whose main priority while driving seems to be talking on her cell phone. Once in a while, if I'm lucky, I may actually see a passenger or two in the vehicle.

[Wuli]

Too much comapared to what?

Compared to what you are used to maybe, but not compared to what they would be if they had not been politically restrained from normal market increases.

The current quick jump from $35 to $60s is due to the pent up price demand that political decisions withheld from developing naturally, slowly over the years. What you are witnessing is merely catching up with natural inflation that most other prices already reflect.

If oil had been allowed to increase naturally then new auto-fuel standards would not be needed because markets and prices would have already demanded them from the auto makers.

[Publius6961]

Well I plan on getting a suv.

Now would be a good time.
Prices on used ones are plummeting.

[redgolum]

The marketplace (higher oil prices) will do the job much better.

You are right. But the correction will be very painful to those who keep believing the the CFI is an accurate measure of inflation.