Please post anon,
For some the price of gas doesn't put a dent in their pocket but for others it may lead to unemployment. Several articles are hinting on the price of crude heading towards $200 a barrel. If the price of gas at the pump is proportional to the price of crude how much will gas be at the pumps? How deep are your pockets.. Big Quartely Profits
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Read the paper on the sidebar entitled Oil and Your Future. Then google _Hugo Chavez wants $200a barrel for crude_.
For those of you who are two lazy or in denial here's a story for you to digest:
Associate Press
updated 4:02 p.m. PT, Fri., April. 25, 2008
HOUSTON - Oil's meteoric rise to near $120 a barrel looks like more than just another economic bubble — growing demand and tighter supplies are likely to keep prices high. Some analysts say even $200 a barrel would not be out of the question.
The latest price surge — pushing crude to record heights in recent weeks, and to nearly double its level a year ago — has some key components of a classic bubble, when market prices climb far above their intrinsic value. The burst comes when investors realize the assets are overvalued.
But growing worldwide thirst for crude, in large part from the rapidly developing economies of China and India, means frustrated consumers probably won't get any relief.
"We can do our homework, but prices are going to go where they want to go at this point," said Jeff Spittel, an analyst at investment bank Natixis Bleichroeder Inc.
Americans who hoped to ride out temporarily high prices by carpooling or driving less may have to make those habits permanent. And because of the premium prices, oil companies may be willing to search out more oil in places they previously couldn't afford to explore.
Oil came close to $120 a barrel Friday on news that a ship under contract to the U.S. Defense Department fired warning shots at two Iranian boats in the Persian Gulf. The markets were also weighing the effects of a pipeline attack in Nigeria and a looming refinery strike in Scotland.
Retail gas prices, which at times rise in tandem with crude oil, moved further into record territory near $3.60 a gallon.
The Organization of Petroleum Exporting Countries — which supplies about 40 percent of the world's crude — insists it's supplying more than enough oil.
Instead, many observers blame speculative traders for bidding up the price as a hedge against inflation and as protection from the sinking U.S. dollar. Some see that as evidence of a bubble.
It's also becoming harder and more expensive for oil companies to find and tap new petroleum reserves — a troublesome scenario given forecasts that the world's energy needs will escalate by more than 50 percent in the next two decades.
Toss in the weak dollar and political instability in some oil-producing countries, and it seems unlikely that oil will fall below $100 a barrel anytime soon, if ever.
Widely watched oil price prognosticator Goldman Sachs has said oil could average $110 a barrel by 2010, up from a previous forecast of $80, and that a spike as high as $200 a barrel is possible in case of a major supply disruption.
I can see it now.
Regular = $8.00 a gallon
Middle Grade = $8.20 a gallon
Top Grade = $8.40 a gallon
How much will it cost you to commute to work? And how will this affect all other goods that you need to get by in life?
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