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Posts with tag: oil | Return to DriversDrive.com Homepage
Expert Says Strong Possibility of $4 Gas
Gas prices are likely to climb much higher as we move into the summer driving season. An ABC article has quotes from Phil Flynn, vice president and energy analyst at Alaron Trading. Flynn sees gas going much higher -- possibly even hitting the $4 a gallon mark.
"Things are looking pretty bad for the upcoming summer driving season," said Flynn, citing a new government report showing that the U.S. stockpiles of gasoline fell by 5 million barrels in the past week, much more than analysts were expecting.
Flynn said he believes gasoline prices will head into record territory -currently a nationwide average of $3.07 - by the height of the summer season.
"This is the time of year when we're supposed to be building supplies, but it seems like the refiners just can't get ahead of what has been very, very strong demand," he said.
Today's report shows that the national supply of gas is at the low end of its average range for this time of year, meaning the United States will have less gas in the tank before the peak summer driving season in the coming months.
Iran's release of the soldiers is great short term news but it won't diminish the building pressure on gas prices. Flynn told ABC that, "Everyone asks me, will we see $4 a gallon? And the answer is, there is a strong possibility that we may see $4 a gallon."
Posted on April 4, 2007
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Eight Reasons Gas Prices Could Go Higher
MSNBC.com has an article that lists eight reasons why gas prices could continue climbing. Some of the reasons include ethanol production costs, tight inventories, demand, summer driving and oil futures speculation. As always Mother Nature is the wild card.
8. Mother Nature: Though it's impossible to predict just how bad this hurricane season will be, the odds are against the kind of devastating damage seen last fall in the relatively small Gulf Coast corridor that produces nearly half of U.S. gasoline supplies.
But it wouldn’t take another direct hit by a Category Five storm to sent pump prices higher. Hurricanes and severe tropical storms anywhere in the Gulf would likely interrupt shipments of crude oil to refineries as well as tanker shipments of gasoline to local market.
And any spot shortages can be counted on to produce short-term local spikes in pump prices.
Hopefully, we will not see a major hurricane in the Gulf of Mexico again this Summer or Fall but even the threat of another significant storm could send oil futures soaring.
Posted on July 11, 2006
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Mega Oil Company Profits Raise Questions
The Associated Press reported oil companies made huge profits in the third quarter as a result of the high oil prices. Exxon Mobil Corp. had quarterly sales over $100 billion and Royal Dutch Shell PLC saw a profit of $9 billion just in the third quarter. The AP article says the enormous profits raise questions about why these high costs being pased on to consumers.
Those results led Democrats in Congress to demand a new windfall profits tax. "Big oil behemoths are making out like bandits, while the average American family is getting killed by high gas prices, and soon-to-be record heating oil prices," Sen. Chuck Schumer, D-N.Y., said in a statement.
But Energy Secretary Samuel Bodman said President Bush opposes such a move and is instead considering a wide range of proposals to help cushion consumers, including the creation of an emergency reserve of gasoline and other refined products.
Thursday's outsized earnings are a result of surging oil and natural gas prices that pushed pump prices to record territory after Hurricane Katrina. They come on the heels of similar eye-popping gains reported this week by BP PLC (BP), ConocoPhillips Inc. and Marathon Oil Corp. (MRO) Chevron Corp. (CVX) reports its earnings on Friday.
Gas prices have come down from the all-time high in September but the average national gas prices is still over $2.50 a gallon according to the AAA's Fuel Gauge Report.
Posted on October 29, 2005
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