Skip to comments.CNBC: Next Stop $6 A Gallon …. $7 Not Far Away
Posted on 04/21/2011 8:41:33 AM PDT by Biggirl
If gas prices were on a train right now it would definitely be riding the Presidents high speed rail. Steve posted on this in March when gas was around $3. The we told you a week ago that gas prices (then $3.90) were headed in this direction and got no interest from callers. Something tells me gas will soon be center stage. CNBC thinks so so do others. Obama video below the fold.
CNBCs report is getting plenty of play, and well it should. While Trump has been grabbing the headlines inside the beltway oil has been grabbing your bucks, and CNBC explains how the dollar is the root cause and Obama the accomplice,
Weakness in the US currency feeds upward pressure on commodities, which are priced in dollars and thus come at a discount on the foreign markets.
One result has been a surge higher in gasoline prices to nearly $4 a gallon before the summer driving season even starts, a trend that economists say will be aggravated as demand increases and the summer storm season threatens to disrupt oil supplies.
(Excerpt) Read more at radioviceonline.com ...
He wants everyone on public transportation so Eric Holder's people are able to assault and/or rob them for being racists.
I have had a theory on this for years and it’s proved correct. Once the msm says the price will go to X dollars, it will because they’ve given permission for it to do so. Once it’s said, the oil companies know the public has been braced for it so they’re free to raise the price.
Where are all the lib pundits on this issue. If a Pubbie were in the WH, they would be talking about this night and day?
Just wait till the bastard wins a second term. We ain’t seen nuthin yet.
yet Trump is a flipping moron for suggesting we pay back our Iraq War costs by taking it out in oil?
(Mis-characterized of course by the media as “taking over Iraqi oilfields...)
Let’s wait and see how nutty that idea seems when gas is $7/gallon. And whether Barry gets interested in anything other than golf.
Which could result in some folks say, “packing some heat?”
Not only gas, but every commodity that is moved via truck , (which includes just about everything) and especially FOOD.
In “Atlas Shrugged: Part I” it is 2016 and gas is $37.50 a gallon.
Reports are that his “Hot Microphone” caught him wishing gasoline was $10 per gallon. That and we’re all slugs. On that point I do think he is correct.
Time to invest in locking gas caps!
“Once the msm says the price will go to X dollars, it will because theyve given permission for it to do so. Once its said, the oil companies know the public has been braced for it so theyre free to raise the price.”
This is a confusion of cause and effect. The oil market is a huge constantly moving entity. The theory that some unseen hand can set the price flies in the face of what we know. Take, for example, the much maligned speculator. Supposedly, they’re driving up the price. Actually, there are thousands of speculators; governments feeding their fleets and their militaries, for example. They need so much gas and so much oil in different grades each month and they’ll need it for they budget year ahead. (There are several steps in this and multiple contracts, so this is simplified and the prices are made up.) The “speculator” goes on the market and offers, for delivery next month (next year, etc.), say $4.09 per gallon of regular gas, $8.72 for JP1 and $9.05 for JP2. These “speculators” are betting the price will go above that level. If it is below that level they lost money, but they got their gas. The supplier willingly sells into the future to guarantee his money so he doesn’t have cash flow problems. If the price goes above the spec price he “lost” money. But he doesn’t care. The supplier constantly lives in the future.
Meanwhile, the actual price we pay at the pump consists of a laundry list of refining costs, transport costs, delivery costs, taxes and an astonishingly small profit. (Gas is highly regulated. The government makes more in taxes than the guy who owns the gas station or the refiner or oil company.)
Can you say “American Revolution Part 2?”
That's why they want gun control.
Punish the innocent. Reward the guilty. It's the Democrat way.
Which will FAIL BIGTIME, because folks will simply be able to “hide em!”.
“I have had a theory on this for years and its proved correct. Once the msm says the price will go to X dollars, it will because theyve given permission for it to do so. Once its said, the oil companies know the public has been braced for it so theyre free to raise the price.”
The price of oil is determined by worldwide demand. Worldwide. Demand.
That's why they're moving TSA out into rail stations and shopping malls. So they can make sure you aren't armed, and put you in jail if you are.
So say you. It’s my theory and I’m sticking to it.
I think there's something to that, and I would add perhaps a bit of self-fulfilling prophecy as well as good ol' supply and demand.
Prices might touch those ranges, but no way they stay there--demand will drop drastically given how rampant the run-up has been to date. We saw that a few years ago when the oil bubble last burst at $4 gallon gas after several weeks.
The long term goal might be to continually condition us to a ever higher price increase and retreat model.
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