Gas Prices

[RRUserious]

Looking at where prices are in February, I'm pretty certain they are going above $4 in the peak travel season. The Fed along with every major central bank around the world is in full court press against deflation. Deflation=Layoffs. As we've "exported" our way of life, every ruling party now gets to worry about the prospect of layoffs. And deflation is the enemy. Well, staving off deflation means pumping liquidity, and commodities that have inelastic supply respond by raising prices. In 2007, we had gas above $4. The recovery insures it will come again because there is not great surplus of gasoline they have to discount to sell it off. For one thing, new refineries haven't been built in years. I just hope people are grateful enough to be working not to go into a tizzy when they pay $4 for gasoline. For it to be cheaper, personal earnings would have to take a dive. And what good's cheap gas if you have no money at all?

 

[JayPea]

I usually only buy a tank or two of gas a month. $4 gas won't be a big problem.

 

[afigg]

Looking at where prices are in February, I'm pretty certain they are going above $4 in the peak travel season. The Fed along with every major central bank around the world is in full court press against deflation.

From what I can tell, we are pass the deflationary threat from the post-2008 crash period. Housing prices have been on the rebound for years, we have job and GDP growth albeit sluggish growth in the opinions of many economists.
As for gas prices, the West Texas Intermediate crude price has crept back up to $100/barrel. The Brent crude price, a measure of the global oil market and a more relevant price for those buying gas on the east and west coasts, is around $108/barrel. The seasonal spring increase in gas prices is coming and we may see $4 or higher a gallon prices in much of the US this summer. But I think most people have gotten used to near $4 a gallon prices in the summer, so it is no longer as much of a sticker stock as it once was. On the other hand, if the turbulence and civil / sectarian war in Syria spreads to Iraq and the Persian Gulf states in a major way, then there would be a significant oil price spike which would very quickly show up at gas pumps in the US.

 

[Texan Eagle]

Looking at where prices are in February, I'm pretty certain they are going above $4 in the peak travel season.

$4 where? That makes a big difference. $4 gas in California? No big deal, we are used to prices going that high from time to time. $4 in Texas or Colorado? Now you're talking some serious issues.

 

[TinCan782]

They are above $3.50 in the LA area now. Wanna see $4 plus per gallon? Like $4.79 per gallon? Go to the Chevron station near LA Union Station at N. Alameda and N. Main! (according to losangelesgasprices.com)

 

[Texan Eagle]

They are above $3.50 in the LA area now. Wanna see $4 plus per gallon? Like $4.79 per gallon? Go to the Chevron station near LA Union Station at N. Alameda and N. Main! (according to losangelesgasprices.com)

The best is when two gas stations on opposite sides of the street have vastly different prices. For example today, in Barstow, CA just where I-40 and I-15 split, one gas station is advertising $3.59 while another gas station just on the other side of the highway at the same exit is $4.39 :wacko: Probably betting on all the Vegas bound tourists not wanting to drive a 100 yards further to refuel.

 

[the_traveler]

Or when there are stations on opposite corners of the same brand (like Texaco or Mobil) that have different prices!

 

[RRUserious]

The Energy Information Agency predicts something like $3.30 as the average price for the whole year and the whole country. Could happen. Right now gasoline inventories are dropping. That might be nothing but decisions by the refiners. Squeeze supply, force up the price. But lots and lots of things are going to vary as the months go by. And that average price could accommodate some price spikes in various places at various times.

 

[tim49424]

We were about $4.05 here in Wisconsin for about a month in August. Gas prices peaked at my mom's in Holland, Michigan at about $4.25. With the current spike of prices, I'm just wondering if we're headed back to $4+ by Memorial Day. I paid $2.95 when I was at her place back around Christmas and they're up to $3.65 currently. We're not far behind her at $3.59 up 30 cents in the last 3 weeks.