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'Strong Possibility' Gas Will Rise to $4


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Guest bleedsbluengold24

Oil Prices Ease After Iran Hostages Are Freed, but Analysts Say High Demand to Keep Gas Prices High

 

By DAN ARNALL

ABC News Business Unit

 

 

April 4, 2007 — For the past two weeks, Iran has not just been holding 15 British soldiers captive; it's been holding the world's oil markets hostage, too.

 

"There's been a $5 or $6 premium that's been built into the price of oil over this," said Phil Flynn, vice president and energy analyst at Alaron Trading. "Even though this crisis has ended, the oil market is still on guard that the tensions in the Middle East are going to continue."

 

Oil prices spiked this morning when Iranian President Mahmoud Ahmadinejad appeared on television, because of uncertainty over what he was going to announce. When he started awarding medals to the troops who had captured the Britons, traders assumed the worst.

 

But by the end of Ahmadinejad's television appearance it was apparent that the soldiers were heading home, and the price of a barrel of oil started to retreat from recent highs, giving up more than $1 to drop to about $64.

 

Analysts say that the price reduction should hold during the coming days but won't translate into lower prices at the pump.

 

"Things are looking pretty bad for the upcoming summer driving season," said Flynn, citing a new government report showing that the U.S. stockpiles of gasoline fell by 5 million barrels in the past week, much more than analysts were expecting.

 

Flynn said he believes gasoline prices will head into record territory — currently a nationwide average of $3.07 — by the height of the summer season.

 

"This is the time of year when we're supposed to be building supplies, but it seems like the refiners just can't get ahead of what has been very, very strong demand," he said.

 

Today's report shows that the national supply of gas is at the low end of its average range for this time of year, meaning the United States will have less gas in the tank before the peak summer driving season in the coming months.

 

Analysts said that puts the country on the edge, making any disruption in supply — such as a hurricane in the Gulf of Mexico refining regions or an expansion of the crisis in the Middle East — that much more dangerous.

 

"Everyone asks me, will we see $4 a gallon? And the answer is, there is a strong possibility that we may see $4 a gallon," said Flynn.

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Guest bleedsbluengold24

Just remember, the administration said just last week the strategic oil reserves were full to overflowing (paraphrase) and the crisis in Iran, etc., should not cause prices to rise.

 

Gas doesn't have to be $4.00/gallon. They have found out the American public will believe anything we are told in terms of reasons for gas prices increasing. So they continue to go up.

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Oil prices worldwide will contunue to rise and rise. Oil production follows a bell curve, and we have probably already reached peak oil. If peak oil was reached in 2000, then in 2020 we would have the same supply as we did in 1980. Problem is, in 2020 the population will be far greater than in 1980. And as the world population continues to increase, we will only require more and more oil to function. Our economy is based on the availability of oil. There is no way that we can "cut back" the use of oil and maintain a stable economy.

 

Also, short-term oil prices are partially controlled by OPEC. Since the U.S. dollar has decreased in value against the euro, and oil is traded with dollars, OPEC needs to raise prices in order to maintain purchasing power in Europe.

 

ive done a little research

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Guest bleedsbluengold24
Originally posted by BoBellCrew
Originally posted by THSdude

There is no way that we can "cut back" the use of oil and maintain a stable economy.

 

I just don't believe that... other sources of energy can make money too.

 

You may be right, but none of the other sources of energy are the economic juggernaut that oil is. The economy of the world depends on the trade of oil.

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There's plenty of oil...we just have to be willing to go there. ANWR, FLA coast, 'BAMA coast, Cali coast. At $4.009/gal., a good number of pseudoenvironmentalists will say "to heck with it. Drill away." Not to mention uncapping onshore wells.

 

I could be wrong - :no: - but I think demand will decline at $4.009. The market won't support that price for long.

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Guest bleedsbluengold24
Originally posted by 1stSuperScot

There's plenty of oil...we just have to be willing to go there. ANWR, FLA coast, 'BAMA coast, Cali coast. At $4.009/gal., a good number of pseudoenvironmentalists will say "to heck with it. Drill away." Not to mention uncapping onshore wells.

 

I could be wrong - :no: - but I think demand will decline at $4.009. The market won't support that price for long.

 

I with ya brutha. As I have said before, if I'm W., ANWR etc, would look like a porcupine because of the number of oil rigs. Given the choice, I pick me over a caribou, fish, etc every time.

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Guest bleedsbluengold24
Originally posted by Locutas

Just like someone else said all those other sources of oil are not going to be opened up as long as we just keeping accepting the rising price. Oil dependency has us by the nads. With a death grip.

 

We are definitely dependent on oil. But if they would go ahead and open up ANWR, Fla., Alabama, etc, there would be a glut of oil. Production would go up domestically. OPEC would have no other choice but to lower prices. And therein lies the crux of the price of gasoline. Did you ever think the reason these other fields aren't open might be so the price of Saudi oil can remain high? We have the power to lower the price of oil in the US and have an economic boost as the result, and yet we choose not to.

 

Hmmm.......

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Originally posted by bleedsbluengold24

 

 

You may be right, but none of the other sources of energy are the economic juggernaut that oil is. The economy of the world depends on the trade of oil.

 

Yea well duh, but even oil isn't going to last forever. If we phase toward cleaner, renewable sources then we'll have a huge head start on the energy economy once said oil runs out, won't we?

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we are dependent on oil and yes we should drill at all above places,but aren't we talking bout gas? our main problem we don't have enough refiners,we haven't had new refinery in 30 yrs,but can not blame any state for not wanting one in their backyard. alot probably think I'm crazy but when oil goes up or down does not mean gas does,especially refiners. for instance on tuesday oil was down but gas was up and am not talking at pump. best way I have found to offset the high gas prices is invest in oil refinery such as TSO,MRO or VLO,This is only an opinion.

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Originally posted by BoBellCrew

 

Yea well duh, but even oil isn't going to last forever. If we phase toward cleaner, renewable sources then we'll have a huge head start on the energy economy once said oil runs out, won't we?

 

I’d say it’s going to have to be some miracle fuel that replaces oil, as the current alternatives pale in comparison.

 

Touted of late are electrics and hydrogen powered cars. But these fuels don’t occur naturally and therefore must be generated from some other, naturally-occurring energy source (oil, coal, gas, water) which adds to the cost of production. Hydrogen is usually produced by 'steam reforming' of hydrocarbons, which generates carbon dioxide as a byproduct. The net result of using hydrogen-powered cars may be increased greenhouse emissions rather than a reduction.

 

Fuel economy is estimated at 20-25% less when using Ethanol (E85), which is currently being used in “flex-fuel” vehicles. It may produce a reduction in net carbon dioxide emissions but increases emissions of formaldehyde, a highly toxic organic solvent. Estimates are that fuel economy is 15-25% worse with E85 than with gasoline.

 

Diesel and biodiesel produce lower sulphur emissions than gasoline, but produce more particulate matter (soot) which is associated with higher rates of lung disease.

 

LPG (liquefied petroleum gas) and natural gas can often produce as much or more carbon monoxide and nitrogen oxides than gasoline. Fuel economy suffers by about 3% compared with gasoline.

 

Oil will have to get a lot more expensive and considerably scarcer before alternative fuels will be viable.

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Originally posted by BoBellCrew

Yea well duh, but even oil isn't going to last forever. If we phase toward cleaner, renewable sources then we'll have a huge head start on the energy economy once said oil runs out, won't we?

The issue is not running out of oil, its having enough to support our economy. The oil crisis in the 70's illustrated that. A breif deprivation of a sufficient supply of oil greatly damaged our economy. As oil runs out, that same damage will take place but can never be fixed.

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Originally posted by BoBellCrew

Yea well duh, but even oil isn't going to last forever. If we phase toward cleaner, renewable sources then we'll have a huge head start on the energy economy once said oil runs out, won't we?

The issue is not running out of oil, its having enough to support our economy. The oil crisis in the 70's illustrated that. A breif deprivation of a sufficient supply of oil greatly damaged our economy. As oil runs out, that same damage will take place but can never be fixed.

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Guest bleedsbluengold24
Originally posted by BoBellCrew
Originally posted by bleedsbluengold24

 

 

You may be right, but none of the other sources of energy are the economic juggernaut that oil is. The economy of the world depends on the trade of oil.

 

Yea well duh, but even oil isn't going to last forever. If we phase toward cleaner, renewable sources then we'll have a huge head start on the energy economy once said oil runs out, won't we?

 

And what would you suggest those cleaner, renewable sources might be? Think about the global economy, and tell me what source of energy is going to power industry, construction, transit, personal use, etc? You can't run a bull-dozer on wind power or solar, or geothermal, yada, yada, yada.

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