Gas prices to hit $6 by summer

HarryHawk

HarryHawk

Rev. Harry
Location
Michigan
https://www.barrons.com/articles/gasoline-prices-how-high-51652816252

Gasoline prices in the U.S. could climb above $6 this summer because the level of gasoline in storage has dwindled just as more Americans take to the road, according to Natasha Kaneva, head of global commodities research at J.P. Morgan . Prices at the pump are already at record highs, averaging more than $4.50 per gallon for the first time ever. This could be just the beginning of the increases
 

I've seen the first signs of predicted food shortages. I thought we were easing up on pandemic restrictions and things were supposed to get back to normal, so this is kind of surprising. I don't think Russia plays a big part in this. Of course, everything every country does plays a part in the global economy, but little wars like this one (at this point) are nothing new. When a superpower starts to throw it's weight around, it's potentially dangerous, but this is still contained in a small area. The global reaction against Russia is unprecedented, however. Many countries are making sacrifices to stop the invasion, but Russia doesn't have much to offer the world except undeveloped energy resources. I don't think they export much in the way of junk automobiles or technology. So it's difficult to blame them for shortages of any kind.
 

HarryHawk said:
I tend to think this is the new normal. The U.S. has decided to "Go Green", which would be great if the technology actually existed.
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I don't understand the reasoning here. True, the US talks about going green, but I don't see it actually happening. It's still in the future, and until it's part of the present, I don't see how it affects us.
 
JustDave said:
I don't understand the reasoning here. True, the US talks about going green, but I don't see it actually happening. It's still in the future, and until it's part of the present, I don't see how it affects us.
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You are seeing it, companies are not willing to make investments in the existing technologies like coal plants.

https://www.reuters.com/business/energy/us-coal-fired-power-plants-scheduled-shut-2021-10-28

Pipelines are shut. oil exploration is curtailed, etc
 
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JustDave said:
I live in an area of relatively low gas prices, but the other day I filled up with premium, which my Miata calls for. $5.79, but that was one of those stations next to a freeway. I never thought I'd see that high a price.
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..yes I understand.. I must look at the price of premium next time I'm passing a garage. The price I quoted is for the cheapest unleaded.
 
hollydolly said:
..yes I understand.. I must look at the price of premium next time I'm passing a garage. The price I quoted is for the cheapest unleaded.
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The cost of transportation may equal out since the US is about 40 times larger than the UK. We probably need to travel farther to get where we are going.
 
HarryHawk said:
The cost of transportation may equal out since the US is about 40 times larger than the UK. We probably need to travel farther to get where we are going.
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yes but by the same token it means that fuel trucks need to travel further distances in the USA ... so really you should be at least as expensive as us for fuel, because the government always passes those costs onto the consumer
 
If I was younger, I'd get myself a motor trike!

Motor Trike Unveils Triumph Rocket III Trike - autoevolution
 
JustDave said:
I don't understand the reasoning here. True, the US talks about going green, but I don't see it actually happening. It's still in the future, and until it's part of the present, I don't see how it affects us.
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I have no problem with going green, but why couldn’t we have made a plan or timeline and do so much at a time? Why try to turn us 180 all at once? The company that does my gardening in Florida, notified me on Monday that he is requesting an additional $5.00 per month to cover the cost of gas and also he is trying to ‘slowly’ convert his gas equipment to electric. Since he requested it, I will oblige him. What he is asking and doing sounds reasonable to me. I think he has a plan in place.
 
Crude, gasoline, distillate, and all other petroleum stocks are at there lowest in over 5 years. Over 50% of U.S. refining is along the Gulf Coast. We are entering that time of year, so $6 gasoline is almost a safe bet.
 
hollydolly said:
yes but by the same token it means that fuel trucks need to travel further distances in the USA ... so really you should be at least as expensive as us for fuel, because the government always passes those costs onto the consumer
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You are spot on about everything traveling long distance by truck including fuel and food. That's what makes it so concerning, everything is going to be going up in price. Diesel is currently about $5.65 on the way to $6. a gallon, the semis average about 7 mpg. That probably adds up to ship something that arrives in California and needs to go to Maine.
 

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