Crude Oil Prices approach $64 a barrel.

Crude Oil prices approach $64 per barrel

"The average nationwide price for regular unleaded gasoline is $2.34 a gallon, or 46 cents above last year, according to the Oil Price Information Service of Wall, N.J. Still, government data show that gasoline consumption is up almost 1 percent at 9.1 million barrels a day through July, compared with last year."

"Oil analyst Marshall Steeves at New York-based brokerage Refco Group Inc. said oil and gasoline prices were likely to keep rising until there were signs of a significant dropoff in demand, or a sharp slowdown in economic growth. "We're clearly not there yet," he said."

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Duh. Their survey said we wouldn't start rebelling until it reached $5 a gallon. So that's where it will go.

I think I said somewhere on this forum a few months ago that gas would be $3 a gallon either by the end of the year or shortly thereafter.

I was scoffed!

I don't know about where you live but the cheapest gas in San Diego is now $2.60 a gallon. Premium is $2.80.

I don't think $3 a gallon is that far away.

And it won't be going down. It will go down a little and creep back up again and be a little higher. It will continue to do this rollercoaster down and then slowly up a little higher until eventually we will reach the $5 a gallon mark the Oil company survey's said we'd pay. It may take a few years....but it will steadily go up to $5 a gallon.

Here's another prediction: Congress will pass drilling in ANWR when they return from vacation.

 

Okay. But even EPA scores which are supposed to create an even playing field so you have accurate comparisons show that cars are going down in efficiency instead of up.

"Some of what the report says reaffirms what has long been known. Leaps in engine technology over the last couple of decades have been mostly used to make cars faster, not more fuel-efficient, and the rise of sport utility vehicles and S.U.V.-like pickup trucks has actually sapped efficiency. The average 2004 model car or truck got 20.8 miles per gallon, about 6 percent less than the 22.1 m.p.g. of the average new vehicle sold in the late 1980's, according to the report."

"The E.P.A. report illustrates what has happened as the industry has poured resources into S.U.V.'s, minivans and family-oriented pickup trucks, vehicle types with less stringent fuel economy requirements than cars. The average new vehicle weight has risen to about 4,000 pounds today, from about 3,200 in the early 1980's. At the same time, the horsepower of an average engine has roughly doubled over two decades, trimming four seconds from the time it takes for the average vehicle to accelerate from zero to 60."

This is the problem that was brought up with the Energy Bill. That hybrids would be used to make more powerful cars rather than to increase fuel efficiency. The new HCH is supposed to be going in that direction. There was a rumor the new Hybrid Camry might, but I kinda doubt that. It would go against Toyota's hybrid philosophy. Plus the Camry has to get at least 45 mpg to meet California's HOV decal requirements. I'm sure they plan on the "Cambrid" being able to qualify for HOV status.

"Of the eight major automakers examined in the report, only G.M., Toyota and Honda showed increases in fuel efficiency in the 2004 model year, the most recent year for which hard sales data is available. Ford had the lowest mileage of the group. Honda, which does not sell the heaviest kinds of trucks, had the best overall mileage.

Some foreign companies do not even trouble themselves to follow fuel economy regulations. BMW, in fact, has paid more than $70 million in fines since the 2000 model year for noncompliance. "

Maybe we should ease up on GM for a while and hit Ford and Chrysler?

 

Except all things won't be even.

As the barrels increase in dollars that 2.5 cents will increase as well.

So for the $80 barrel it will be more like $3.75 - $4.00. Or more.

 

It's now $66 a barrel.

$66 oil lifts Exxon.

"U.S. stocks climbed on Thursday as crude oil hit $66 a barrel, reaching a record high for the fourth day in a row and boosting energy companies like Exxon Mobil Corp. (NYSE:XOM - news), while wireless technology company Qualcomm Inc. (Nasdaq:QCOM - news) rose on an acquisition.

"The market is still being buoyed by the energy sector. I am totally baffled by the fact that the market is ignoring higher energy prices," said Paul Mendelsohn, chief investment strategist at Windham Financial Services. "But at some time, higher energy prices will have an impact."

Shares of Exxon, the world's largest publicly traded company, jumped 1.8 percent, or $1.05, to $60.95 during the regular trading session on the
New York Stock Exchange. It was one of the blue-chip average's biggest gainers.

And the stock of oil company ConocoPhillips (NYSE:COP - news) gained 1.2 percent, or 76 cents, to $66.40, helping lift the S&P 500. The American Stock Exchange index of energy companies (^OIX - news) was up 0.86 percent.

U.S. crude oil futures hit a fresh intraday high for the fourth time this week, climbing to $66 a barrel as traders worried about disruptions in the flow of crude and gasoline supply amid refinery snags, as well as
Iran's nuclear activities, which put it at odds with the
United Nations' atomic watchdog.

Crude for September delivery rose 90 cents to settle at $65.80 per barrel on the New York Mercantile Exchange, after setting the record.

While higher oil prices are generally considered bad for stocks as they hurt corporate profits and curb consumer spending, they can also increase oil companies' earnings, driving their shares up.

"Until we see earnings impacted by oil, I don't think the market is going to be responsive," said Brad Pleimann, head of equity position at Piper Jaffray.

Year to date, the S&P 500 energy sector is up more than 32 percent."

Boy, it sure is good Exxon got the Federal subsidy out of the Energy Bill, because they sure couldn't afford to drill for more oil based on their profits alone.

So, we'll be paying for this oil with September gas prices? That means....price goes up again.

Anyone taking bets on $3 before the end of the year?

I see a shortage of Prii ahead.

Gas.

HOV access.

Tax Credit.