What do energy analysts actually get paid to analyze? Just mere weeks ago many "analysts" predicted that the price of gas would spike at $3.60 in the peak summer driving season. Well, it's already freaking $3.60 here and last I checked, it's not
close to summer. At the current pace, it could very well be $4.50 per gallon by July.
Like it or not, irrationally high oil prices are here to stay.
On that note, I want to direct you to some of my sentiments from way back in 2005...
I don't care how irrational the freaking market is, gas just cannot go up 20 cents every week from now until eternity.
Someone robbed a grocery store in Omaha. We'd better raise oil prices by $19. You never know if he stole the local oil refinery from that grocery store.
A meteor hit Mars. Oh no! I must raise oil another $12. The Martians may start immigrating to Earth and drive up our demand for oil.
It was 77 degrees in Cleveland today. No! Say it ain't so! Oil is too cheap. I demand you raise it by $52 / barrel. Think of the children! Won't somebody please think of the children?!?!
There was weather somewhere on Earth. Oh sweet Lord almighty! Weather!?!?! The demand will go crazy with this so called weather. Breaking news: Oil prices surge $4000 per barrel on news of impending weather!
5 comments:
Waaahh!! Waaahhh!! Gas is so expensive that I can't drive my Infinity...!
When I was in England last month, petrol was £1.05 per liter. That's approximately £4.20 per gallon! Then add the conversion rate to the dollar, I paid about $8.60 per gallon.
Gas is a luxury item in Europe and is priced accordingly. The love affair with cars in this country is quickly coming to an end. It will have to as many people won't be able to afford to drive their cars the same way they do now.
The big problem now is that public transportation in most U.S. cities is seriously lacking, and it will cost a lot to get anywhere close to the standards found in Europe.
It's Infiniti. Three I's.
It seems like I just went over this. The math symbol is Infinity. The car is Infiniti.
The problem with European gas is not the gas itself, it's the taxes. The gasoline costs about $2.50 per gallon. Everything else is distribution cost, marketing, taxes, and profit. A gas station owner makes about $.01 to $.02 per gallon profit.
Here we pay about $.68 per gallon in taxes. In Europe they pay about $5.00 per gallon in taxes.
Go talk to your buddies at the Fed. As long as the dollar keeps sinking in value, the price of oil will go up.
My "buddies" at the Federal Reserve are a bunch of idiots.
It's going to be 5-10 years before the dollar recovers the value that it's lost.
The European exporters are starting to realize the importance of a stronger dollar. BMW and Volkswagen are both going to open new manufacturing plants in the U.S. because they can't compete at the current prices of the euro to the dollar.
I think because of this, the Europeans will finally lower interest rates (even though they're having moderate inflation) and/or buy up a bunch of dollars to shore up the declines.
You got it right, Tim. The taxes are lower for diesel in europe, that is why there are so many more diesels there. I think diesels in the US get similar mileage to hybrids. My friend made it from southern maryland to my wedding in Indiana on one tank in his VW jetta. That's 680 miles!! Unfortunately, people are still afraid of them here.
So are we the mexico for Europe now? They are building factories here?!
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