Oil is over a $100 a barrel. Now what?

[dd74]

What will happen to the pump prices?

[Rick Lee]

Pump prices will favor motorcyclists.

[Burnin' oil]

They'll probably drop. Someone research the profits that the oil producing countries are making. It's gotta be alot, maybe into six figures.

[ckissick]

I wonder if they make an adapter kit for a Tesla motor/batteries in a 911E.

[Porsche-O-Phile]

That Tesla Roadster is sounding better and better. . .

[widebody911]

Waitaminnit - I thought we were going into Iraq to avoid $100/bbl oil?

[Moneyguy1]

Some (perhaps many) people will have to go further in debt, delaying payments on other bills or making fewer needless purchases. There will be an ever increasing "trickle down" effect, since energy affects just about everything. What are the oil producers going to do with all that additional income? I shudder to think about it too much.

[widebody911]

Waitaminnit - I thought we were going into Iraq to avoid $100/bbl oil?

[Porsche-O-Phile]

Oh no, we went into Iraq because of WMDs, remember?

Then it was "for the Iraqi people".

Then it was "because freedom is on the march"

Then it was to "stay the course"

Probably a few other ones in there I'm forgetting, too.

[sammyg2]

The gasoline inventory is up this week, so the answer is that in the short term gasoline prices will level off and probably fall a little. Not much and not for long.

Oil prices and gasoline prices do not necessarily follow each other.

In the long term I expect gas prices to climb to new records but probably not until May.
http://tonto.eia.doe.gov/oog/info/twip/twip.asp

http://tonto.eia.doe.gov/dnav/pet/pet_sum_sndw_dcus_nus_w.htm

[speeder]

It's gonna suck. This is what happens when you elect horrible leaders who pay zero attention to the deficit.

[lendaddy]

Originally Posted by widebody911

Waitaminnit - I thought we were going into Iraq to avoid $100/bbl oil?

Where did you hear that?

[Porsche-O-Phile]

"We love our kids"

"Here you go son, here's a $2 trillion dollar deficit for your and your friends to work off. Have fun!"

Amazing, the human capacity for rationalization. It really is.

[legion]

Originally Posted by Wayne at Pelican Parts

Oil Futures have risen to $100 / barrel. That's not the same as oil on the market today. This basically means that the traders are betting that oil will go higher in the future. It's a completely manipulated market these days - controlled by the futures traders of Wall Street. Hopefully, some day this will end, not sure when. The spot market isn't much cheaper, but as soon as the world slows down just a bit, that price will hopefully float back down.

-Wayne

Spot on. By my count, we've had about 4 years of overreaction in the energy markets. One day traders will switch direction, oil will be poison, and there will be overreaction in the other direction.l

[sammyg2]

Originally Posted by widebody911

Waitaminnit - I thought we were going into Iraq to avoid $100/bbl oil?

See, there's this thing called sub-prime mortgages. Lots of irresponsible people got them and now refuse to live up to their promises. They said they would make the payments but now they don't want to, or they can't because they were too greedy or stupid to read the loan documents and do some simple math.
The feds take steps to bail them out including lowering interest rates.
Next thing you know, the value of the US dollar starts falling like a rock compared to other currencies, like the euro. So now the US dollar can't buy as much oil as it used to so the price of oil goes up. Sux, don't it?
That's part of it. Another key part is that the available oil inventory is down in this country right now due to recent better than expected refining capacity utilization. Oil inventory is down, gas inventory is up, price of oil goes up now but will adjust downward in about a month or so.
Some would think that sounds like a good opportunity to short some futures.

[The Gaijin]

Maybe our generation will come to be known for more than gross consumption in the form of three ton chrome and plastic SUVs, ugly McMansions on bulldozed farm fields and a diet so bad that 70% of us are on lipitor by age 70... Or maybe not.

We need a new tax to keep $100 per barrel as the floor price and another one to increase the price of the stuff at twice the rate of inflation for the next ten years.

[Rick Lee]

Originally Posted by The Gaijin

We need a new tax to keep $100 per barrel as the floor price and another one to increase the price of the stuff at twice the rate of inflation for the next ten years.

Yup. But I think it should be plenty more than that.

[Palum6o]

On NBC nightly news, I believe they said $4/gal by April??

[kach22i]

Electric cars.

[frogger]

Originally Posted by The Gaijin

We need a new tax to keep $100 per barrel as the floor price and another one to increase the price of the stuff at twice the rate of inflation for the next ten years.

Originally Posted by Rick Lee

Yup. But I think it should be plenty more than that.

WTF?

Maybe revise the tax code to favor savings / investment over consumption / debt.