hang on to yer *** boys and girls.........oil is gonna jet

Crude oil prices moved higher in New York Friday on rumors of a possible engagement between U.S. and Iranian navy vessels in the Persian Gulf.

Reports of new pipeline outages around the globe were also supporting higher crude prices.

West Texas crude for June delivery gained $2.46 to $118.52 a barrel on the New York Mercantile Exchange. The May WTI contract expired after the close of Thursday's trading

 

and i thought 75 dollars a barrel was ridiculous....

 

Yeah, well it looks like regular is catching up with diesel now. Day before yesterday, I saw at the Valero, diesel was $3.99 and regular was $3.45.

Diesel was 80-85 cents more a short while ago.

 

You are correct, regular is catching up. Around Fargo/Moorehead it is 3.49, not sure about diesel. Diesel out here where we live is cheaper and is still 4.15 and climbing.
Something has really got to be done to stop this crap.

 

$5 gas near, 78% of Americans say

Americans are already paying through the nose for gasoline, and they think it's only going to get worse.

A CNN/Opinion Research Corp. poll found that 94% of respondents expect they will have to pay $4 a gallon sometime this year - and 78% said they figure it will hit $5.

The national average for gasoline was $3.61 on Monday, according to motorist group AAA.

Consumers' fears that they will have to pay more have intensified. A year ago, 79% thought gas would cost $4 by the end of 2007 and only 28% feared $5 gas.

At the same time, high prices seem to be easier to swallow now than it has been for most consumers in the past. Of the more than 1,000 American adults surveyed in the poll, conducted April 28-30, 60% said high fuel prices have caused hardship for them or their household. That's down from 72% in March and 66% during the same time last year.

Demand for gas is down

But if Americans feel better able to absorb the rising price of gas, it might be because they are driving less. In fact, demand for gas is far below the average for this time of year.

"Gasoline is the most elastic of all commodities," said Stephen Schork, editor of energy industry newsletter The Schork Report. "It takes a big jump in prices to alter commuters' behavior, but it appears we have now approached that level."

And with crude oil topping $120 a barrel for the first time Monday, gas may continue its historic rise.

"With oil prices so high and demand so low, refiners' incentive to produce gasoline is very thin," noted Schork, saying that low gasoline supplies have meant higher prices for consumers.

In addition to cutting back on driving, consumers are also buying more fuel-efficient vehicles. U.S. automakers reported a continued drop in SUV and truck sales in April, but smaller cars and hybrid vehicles have increased dramatically. Sales of Toyota's hybrid Prius rose 67% in April.

No end in sight

Of course, for some Americans in California, Hawaii, and other western states, $4 gas is already a reality. Gas prices have set record after record, rising 18.4% nationwide this year. Most of that increase has come in the past month.

Last month, the U.S. Department of Energy said that the national average price of gasoline would hit a high of $3.60 this year. But gas prices have already surpassed that forecast well before the typical peak in gasoline prices in June, leading some analysts to raise their forecasts toward a high beyond $4.

"For gas prices to come down significantly, we'll have to see a material depreciation in the value of crude, but with prices hitting $120, it doesn't look like that's happening any time soon," Schork said.

"We'll see a national average of $4, $4.10, $4.20 and maybe even $4.30," added Schork, saying that $5 gas was indeed possible in certain parts of the country by the end of the spring.

Where do consumers place the blame? With oil companies like ExxonMobil (XOM, Fortune 500) and Chevron (CVX, Fortune 500) taking home record income in the past year, 83% said oil companies are making too much profit.

 

Whitmore,

This is what we get when we listen to politicians. Remember when the Dems said that they would lower our fuel prices two years ago if we just elected them into the majority in the house and senate... well, in the last year we have seen diesel nearly double. I don't think I like the way they keep their promises...

How about you?


Rick

 

Unfortunately, diesel is what makes the world (not the USA) tick. When China goes from less than 2% automobiles per capita on the road to more than 30% in the same 24 month period you can bet there will be an increase. Moreover, our governments only control the amount of taxes we pay on the fuel - nothing more. Therefore don't believe the hype to think that some guy or gal running for office down there will make all of 2 cents different to your price at the pump.

It just simply won't and can't happen.

 

yet people keep believing them that they will lower the price of fuel even tho they really can't they want to tax the oil companies more they will just pass that cost on to the consumer

 

Analyst predicts $200 oil could happen this year

Tuesday May 6, 10:28 am ET

By Samantha Bomkamp, AP Business Writer

Goldman analyst predicts $150 to $200 oil could soon be reality, but peak price still unclear


NEW YORK (AP) -- A Goldman Sachs analyst predicts that oil prices could reach $150 to $200 a barrel over the next 6 months to two years, but said that how far prices could climb still "remains a major uncertainty."


"We believe the current energy crisis may be coming to a head, as the lack of adequate supply growth is becoming apparent," analyst Arjun N. Murti wrote in a client note.

Oil for June delivery hit a record $122 a barrel Tuesday in electronic trading on the New York Mercantile Exchange.

Murti said his highest forecast prices represent the possible culmination of a "super spike" -- the steady rise in oil prices the analyst first called for three years ago.

At the time of his prediction in April 2005, the forward crude contract settled at $57.01 a barrel. Murti saw prices ascending as high as $105 -- saying that was the price at which it might be necessary to pull back significantly on energy consumption. One contrarian analyst called that figure "laughable."

That analyst, Citi Investment Research's Tim Evans, asserted in a client note Tuesday that oil prices have the same potential to fall by $40 to $50 per barrel over the next 6 months to two years as to rise like Murti predicts.

"The fundamental premise behind the latest calls seems thin at best," Evans said.

But soaring oil prices have already squeezed the profits of companies from truckers and railroads to airlines -- who mark fuel as their highest cost. The effects have also trickled down to consumers, as gas prices follow suit.

Oil companies meanwhile, have racked up record profits.

Murti said he remains bullish on most facets of the U.S. energy market, especially integrated oil companies, explorers and producers, and pipeline operators.

He raised his 2008 prediction for benchmark West Texas Intermediate crude oil spot prices to $108 per barrel from $96, and his 2009 estimate to $110 from $105. He lifted his prediction for 2010 and 2011 to $120 from $110.

But he also said it was possible that oil could hit $125 this year and $200 in 2009 before coming down to $150 in 2010.

He lowered his view on oil refiners to "Neutral" from "Buy," but said investors should still consider Valero Energy Corp. and Frontier Oil Corp. at their current values. He maintained a "Neutral" rating on oil drillers, but said investors should consider the stocks if they pull back.

He also named oil company ConocoPhillips, oilfield services provider Halliburton Co. and pipeline operator El Paso Corp. among his top picks.