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$3 Gas On Horizon This Summer?
CBS ^ | March 28, 2006

Posted on 03/28/2006 12:11:14 PM PST by presidio9

If you've bought gasoline in the last few days knows, you know that prices at the pump are on the rise again.

Trilby Lundberg, publisher of the Lundberg Survey of 7,000 gas stations, told CBS Radio News the average price of all grades combined is up nearly 15 cents over the last two weeks, to $2.52. That's 40 cents higher than last year at this time.

Tom Kloza, an oil analyst for the Oil Price information Service told The Early Show co-anchor Rene Syler Tuesday, "This is pretty much typical for this time of year. It seems a little worse because we're starting from higher numbers.

"But, generally, wholesale prices go up by about 55 percent from, let's say, mid-February to late May — and, as bad as this may seem, we haven't gone up that much right now. I'm afraid this may be the last time you see $2.50, or less than that, for about five months."

Are we looking at $3 a gallon gasoline this summer?

"I don't think we are, unless there's a calamity," Kloza says. But, he warns, "there's a pretty good chance for some calamities this year. This is going to be the summer of hurricane fears, the summer of hurricane worries.

"Oil prices are established by traders, they're established by speculators, and they're established by people who react to fear. And there's no question that this spring and summer is going to be a summer of fear about the tropics. So, I think, without any hurricane impacts or anything geopolitically in Iran, Nigeria or Venezuela, we're looking at $2.50 to $2.75 on average for the next five months.

"If we get an event, that brings $3 and all the other numbers into play. An event would, of course, be a tropical system making landfall near (oil-producing) hardware," or a problem in any of the major oil-producing nations.

"A lot of the gasoline price and a lot of the crude oil price is established by the investment community," Kloza explains. "The investment community is worried about a geopolitical hot spot. It's also worried about refineries breaking down, because we really have no margin of error.

"That investment community is not likely to be selling, particularly since the real peak driving season in the days where we use 9.5, 9.6 million barrels a day is well ahead of us. It's going to be a tough period to go through."

What can we do to help reduce the impact on our pocketbooks?

"Everyone should realize there's really no downside to conservation," Kloza said. "You might not necessarily need to cancel your summer vacations. You probably should take them.

"Measured in personal disposable income, gasoline is still pretty much a bargain, but pay attention.

"I think if you can cut back a little bit, that's a prudent measure, whether we're talking about gasoline or we're talking about appetite for other things. There is a lot of excessive consumption out there. It holds true in gasoline and holds true in a lot of other elements."


TOPICS: Business/Economy; Culture/Society; Extended News
KEYWORDS: energy; gasoline; oil; seebs; wtfk
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1 posted on 03/28/2006 12:11:15 PM PST by presidio9
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To: presidio9
LOL

Here we go again...

2 posted on 03/28/2006 12:13:07 PM PST by detsaoT (Proudly not "dumb as a journalist.")
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To: presidio9

a very warm winter, heating fuel usage in the northeast way down - why didn't the refineries convert to making gasoline sooner?

let the shakedown begin.


3 posted on 03/28/2006 12:13:28 PM PST by oceanview
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To: presidio9

$3 this summer?
how 'bout $3 this week! LOL
http://www.gasbuddy.com


4 posted on 03/28/2006 12:14:11 PM PST by kellynla (Freedom of speech makes it easier to spot the idiots. Semper Fi!)
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To: detsaoT

any bets on when the first refinery fires will start? that's always good for another 10 cents a gallon.


5 posted on 03/28/2006 12:14:22 PM PST by oceanview
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To: oceanview

It already has. In passing I saw a $2.899 price as few days ago in the Glendale area for low octane.


6 posted on 03/28/2006 12:15:26 PM PST by DoughtyOne (If you don't want to be lumped in with those who commit violence in your name, take steps to end it.)
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To: presidio9

CBS wrong again! The prices are already starting to drop because the stockpiles are already being transferring from winter to summer blend at the perfect time of the year. Last year they got a late start due to mechanical failures and a later winter sucking up heating oil.


7 posted on 03/28/2006 12:16:15 PM PST by Wasanother (Terrorist come in many forms but all are RATS.)
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To: DoughtyOne

$3.08 Chevron Barstow


8 posted on 03/28/2006 12:18:10 PM PST by kellynla (Freedom of speech makes it easier to spot the idiots. Semper Fi!)
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To: presidio9
1) CBS didn't headline Feb's 25% drop in wholesale gas prices.

2) Gas is already way over $3 on Colorado's wesern slope.

9 posted on 03/28/2006 12:18:16 PM PST by NativeNewYorker (Freepin' Jew Boy)
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To: DoughtyOne

and that's for Unleaded Regular. LOL


10 posted on 03/28/2006 12:19:15 PM PST by kellynla (Freedom of speech makes it easier to spot the idiots. Semper Fi!)
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To: presidio9
3.00 this summer? No, it will be 3.50 - 4.00 this summer.

2004 : 2.50 a gallon seemed to be the peak
2005 : 3.00 a gallon was close to the peak.

11 posted on 03/28/2006 12:20:19 PM PST by Centurion2000 (Islam's true face: http://makeashorterlink.com/?J169127BC)
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To: kellynla

Ouch


12 posted on 03/28/2006 12:21:07 PM PST by DoughtyOne (If you don't want to be lumped in with those who commit violence in your name, take steps to end it.)
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To: presidio9

$3.19 Unleaded Reg. Unocal Pukalani, Hawaii


13 posted on 03/28/2006 12:21:31 PM PST by kellynla (Freedom of speech makes it easier to spot the idiots. Semper Fi!)
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To: Centurion2000

2007 4.00
2008 4.50
2009 5.00
2010 5.50

I'm sure your wages are going up in a similar manor. /s


14 posted on 03/28/2006 12:22:48 PM PST by DoughtyOne (If you don't want to be lumped in with those who commit violence in your name, take steps to end it.)
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To: oceanview
for all the gas price whiners who feel they are entitled to $1 per gallon gas


15 posted on 03/28/2006 12:23:01 PM PST by petercooper (Cemeteries & the ignorant - comprising 2 of the largest Democrat voting blocs for the past 75 years.)
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To: presidio9

Gas prices in the Harrisburg-York (PA) have gone up 35¢ in the past 2 weeks. Unleaded Regular is now at $2.55/gal, Unleaded Plus at $2.65/gal, and Unleaded Premium at $2.85/gal.

We'll be over $3.00/gal by mid-Spring, IMO.


16 posted on 03/28/2006 12:23:15 PM PST by butternut_squash_bisque (The recipe's at my FR HomePage)
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To: kellynla
$3.08 Chevron Barstow

Then it must be 3.58 out in Needles.

17 posted on 03/28/2006 12:23:28 PM PST by Centurion2000 (Islam's true face: http://makeashorterlink.com/?J169127BC)
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To: oceanview

"any bets on when the first refinery fires will start? that's always good for another 10 cents a gallon."



Yeah, but they're just "good capitalists".


18 posted on 03/28/2006 12:25:46 PM PST by Blzbba (Sub sole nihil novi est)
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To: Wasanother
The prices are already starting to drop

Hasn't dropped in the Peoples Republic of NC

19 posted on 03/28/2006 12:25:53 PM PST by JackDanielsOldNo7 (If it wasn't for marriage, I would not have this screenname.)
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To: petercooper

I'd be happy for 1.50 a gallon prices.


20 posted on 03/28/2006 12:26:17 PM PST by Centurion2000 (Islam's true face: http://makeashorterlink.com/?J169127BC)
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To: oceanview
a very warm winter, heating fuel usage in the northeast way down - why didn't the refineries convert to making gasoline sooner?

Because they have to make Oxigenated gasoline until X date by federal mandate.

21 posted on 03/28/2006 12:26:58 PM PST by pikachu (Why are all my rich Nigerian realtives dying but none of them can get a will made?)
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To: presidio9

Here in Alabama, it was $2.49 last week. This week it is $2.40. Go figure.


22 posted on 03/28/2006 12:27:10 PM PST by AnnGora (Please do not remove tagline. All offenders will be prosecuted.)
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To: presidio9

Who cares? I could really give a flip...milk goes up and down and nobody gives a ratz patoody...so does butter, lettuce, tomatoes and just about everything else in this great country. I need gas, food and clothing. I'll but what I need and stop going to the movies..ooops, haven't been to a movie in two years or more...I'll just adjust somewhere else.

The greedy oil companies need to talk to "THE GUY" who pegs the price each week and tell him to jack it up faster and bring it back down slower...LOL!


23 posted on 03/28/2006 12:27:19 PM PST by GRRRRR (ACLU, Hitliary and DemonRats are the Enemies of AMERICA and FREEDOM)
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To: DoughtyOne
"It already has. In passing I saw a $2.899 price as few days ago in the Glendale area for low octane."

I paid $2.39 this morning in Mobile.

24 posted on 03/28/2006 12:27:46 PM PST by blam
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To: presidio9

There ARE ways to make $$$ off of this forecast....


25 posted on 03/28/2006 12:27:53 PM PST by dakine
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To: blam

Yeah, but we're not talking about bottled water. Heh heh heh...

That's pretty good. You guys probably don't have to buy the exotic blend we do though. That probably raises our costs by $0.10 to $0.25 a gallon. Still, you're looking pretty good back there.


26 posted on 03/28/2006 12:30:26 PM PST by DoughtyOne (If you don't want to be lumped in with those who commit violence in your name, take steps to end it.)
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To: presidio9

As Rush notes, this time of year the so called experts are touted by the Drive By Media on this subject and are more than often wrong.

Again I wish the specultors that are driving the market up would be investigated. This is where we would find the real crime, not at the corporate offices of Exxon, Cheveron, etc.


27 posted on 03/28/2006 12:31:18 PM PST by The South Texan (The Democrat Party and the leftist (ABCCBSNBCCNN NYLATIMES)media are a criminal enterprise!)
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To: kellynla
$2.35 Keesler AFB

$2.42 - $2.49 around town with some isolated gas stations about 15 cents more proud of their product.

28 posted on 03/28/2006 12:31:22 PM PST by trebb ("I am the way... no one comes to the Father, but by me..." - Jesus in John 14:6 (RSV))
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To: JackDanielsOldNo7

It's starting here in Texas. It's gone down about 5 cents in a week here so hopefully the Good People of North Carolina will see the drop soon.


29 posted on 03/28/2006 12:31:43 PM PST by Wasanother (Terrorist come in many forms but all are RATS.)
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To: presidio9
"You might not necessarily need to cancel your summer vacations. You probably should take them."

1200 mile round trip, 15 MPG = 80 gallons...Yep, that extra $80 is going to change folks' plans. If it does, they need to stay home and work....

30 posted on 03/28/2006 12:33:21 PM PST by dakine
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To: presidio9

http://www.sandiegogasprices.com/retail_price_chart.aspx


31 posted on 03/28/2006 12:35:14 PM PST by RS ("I took the drugs because I liked them and I found excuses to take them, so I'm not weaseling.")
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To: JackDanielsOldNo7

Down 10 cents a gallon here in OH in the past three days.


32 posted on 03/28/2006 12:38:26 PM PST by mak5
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To: presidio9

If Bush were smart, he'd have the EPA authorize any and all gasoline formulas everywhere in the USA. Why is one formula better at fighting smog in LA? A second in Huston? A Third in Chicago?

One of the bottlenecks that creates the summer increase in prices is the strain that so many different formulas have on the limited refining, storage and distribution of the product.

The formula I buy in Cornland to go to Chicago gives me 10 or 15% more mileage than the smog figthing formula I buy in Chicago to return to work. So if the smog fighting formula burns more gas for the same miles, how is that a plus for either energy conservation or pollution?


33 posted on 03/28/2006 12:44:22 PM PST by spintreebob
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To: dakine

"1200 mile round trip, 15 MPG = 80 gallons...Yep, that extra $80 is going to change folks' plans. If it does, they need to stay home and work...."

Look at it this way - average family with two cars putting on a total of 30k per year, and each car averaging 20 mpg, an increase from $2.50 to $3.00 results in an extra $750 dollars in yearly gas costs.

That's a weeks pay for a lot of people.

// 40mpg Civic and 30mpg Accord owner
/ It's conservative to "conserve"


34 posted on 03/28/2006 12:46:20 PM PST by crv16
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To: presidio9

"This is going to be the summer of hurricane fears, the summer of hurricane worries."

Gee, I planned on enjoying my summer here on the east coast of FL. Now I have to make time to fear and worry about the unknown.


35 posted on 03/28/2006 12:53:36 PM PST by synbad600
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To: crv16
"average family with two cars putting on a total of 30k per year, and each car averaging 20 mpg, an increase from $2.50 to $3.00 results in an extra $750 dollars in yearly gas costs."

Just an ignorant observation here, but it seems as long as the economy seems to absorb this 60 to 66 dollar a barrel, I don't see it EVER coming down to 35 or 40. Why would it? (Just an education from a small college in marketing/advertising and Bus/admin.)
36 posted on 03/28/2006 12:55:49 PM PST by poobear (Islam - A Global Lynch Mob !)
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To: petercooper

you mean as opposed to the oil company execs and cartels - who rig the markets because they think they are entitled to record profits?

there was supposed to be some relaxing in refinery permit rules - where are all these new US refineries going up? the truth is, the industry likes the tight refining capacity just fine - they don't want to build any new refineries, and they don't want to store refined oil stocks to smooth out these price dislocations. they don't want any new competitors in the market either, and would rather further consolidate through mergers then compete.

but I guess they are ENTITLED to be allowed to do anything they want?


37 posted on 03/28/2006 12:56:45 PM PST by oceanview
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To: jmc813

I told you people like to bitch. lol


38 posted on 03/28/2006 12:57:26 PM PST by verity (The MSM is comprised of useless eaters)
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To: poobear

its because of credit cards. most people absorb these higher gas costs, because they buy gas on credit, and it just gets rolled into their debt load.

want to see some conservation - ban credit card purchases for fuel - cash or debit only.


39 posted on 03/28/2006 12:59:59 PM PST by oceanview
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To: spintreebob
Yeah why didn't the pinheads including W make that a cornerstone of that pig of an energy bill?

I'm a futures trader and the fact May crude couldn't even take out $60.00 and has now shot up to $66.00.....sheeesh when memorial day driving fear hits look for $80.00 crude sooner rather then.....
40 posted on 03/28/2006 1:00:08 PM PST by Blackirish (Hillary is angry AND brittle.)
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To: oceanview

"its because of credit cards. most people absorb these higher gas costs, because they buy gas on credit, and it just gets rolled into their debt load."

That well may be, but prices have been high long enough to hit very hard on those folks who practice this without being able to afford it. I've had to raise prices on our company services more than three times to try and compensate. My credit card bills keep coming in and I pay them off (for the most part).

Just an observation here in a county of Florida that's mostly middle class. I've seen no slow down in purchasing or buying of smaller cars. ???

Again, I am no economist.


41 posted on 03/28/2006 1:04:23 PM PST by poobear (Islam - A Global Lynch Mob !)
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To: presidio9

"I think if you can cut back a little bit, that's a prudent measure, whether we're talking about gasoline or we're talking about appetite for other things. There is a lot of excessive consumption out there. It holds true in gasoline and holds true in a lot of other elements."

-------
MSM trying to talk down the economy again. VP Cheney said conservation was ineffective. I think he knows a little bit more about it than these talking heads.


42 posted on 03/28/2006 1:04:45 PM PST by balch3
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To: crv16

2 cars, 30k miles a year each? Then $750 better not be a week's pay...


43 posted on 03/28/2006 1:05:25 PM PST by dakine
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To: Blzbba

"any bets on when the first refinery fires will start? that's always good for another 10 cents a gallon."



Yeah, but they're just "good capitalists".



Lots of bashing of free enterprise on this thread. Sometimes I wonder how may conservatives there really are on FR.


44 posted on 03/28/2006 1:06:13 PM PST by balch3
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To: poobear

true. If they are playing the credit game-somehow they are still qualifyting for 700k homes all around me. And the restaurants are full Sunday through Saturday.


45 posted on 03/28/2006 1:06:45 PM PST by riri
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To: oceanview

The refineries did convert to gasoline earlier this year because of the warm weather. But don't try to use logic on the oil market. I have the crude oil futures contract on my screen. I watch it every day. Today it is up almost $2 because "traders want to get in before the new ETF comes out, possibly next week (according to WSJ)". The ETF is a fund that will allow Joe MutualFund to buy crude oil shares--like stocks. They (the speculators) think there will be a price spike when the ETF comes out. Maybe, but I don't trade oil--too risky. And actually, the traders will probably let the public buy into the ETF and then drop it (taking their money).

The whole oil price run-up has been a crock from the start. Global demand forecasts have been falling for the last year and inventories of oil and gasoline are at 5-7 year highs. So the price is down, right?

The bastard oil speculators (hedge funds) are to blame and nobody wants to address the problem.


46 posted on 03/28/2006 1:08:12 PM PST by xcct838
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To: balch3
Lots of bashing of free enterprise on this thread.

Gasoline has the amazing ability to turn otherwise reasonable people into raving Marxists.

47 posted on 03/28/2006 1:13:42 PM PST by ThinkDifferent (Chloe rocks)
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To: Blackirish
We need to outlaw day-traders.

Buy anything you want, any day you want, but sell orders take 7 days.

That would calm down prices and markets, day-traders could go get a real job.
48 posted on 03/28/2006 1:21:14 PM PST by Beagle8U (John McCain, you treasonous bastard)
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To: spintreebob

I really don't know why we keep bothering for government to solve our problems. Getting government in usually takes the solution out. Its like getting mad at a pig for wallowing in the mud. It will just frustrate you and annoy the pig. We should focus on limiting the power of government.


49 posted on 03/28/2006 1:26:07 PM PST by mission9 (Be a citizen worth living for, in a Nation worth dying for...)
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To: oceanview

Nobody's got a gun to your head forcing you to buy gas. Go get a bike


50 posted on 03/28/2006 1:26:58 PM PST by petercooper (Cemeteries & the ignorant - comprising 2 of the largest Democrat voting blocs for the past 75 years.)
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