Gasoline Prices Reach Record Highs

Analysts Say Prices Will Continue To Skyrocket For The Foreseeable Future

(AP)  Gasoline and crude oil jumped to new records Thursday, with gas rising 3 cents to an average national price of nearly $3.65 a gallon and oil crossing $124 a barrel for the first time.

At the pump, the average price of a gallon of regular gas nationwide rose 2.7 cents to a record $3.645, according to a survey of stations by AAA and the Oil Price Information Service. Diesel prices also rose, adding 0.9 cent to match a record national average of $4.251 a gallon.

Gas prices tend to lag oil futures, and with crude rising to a new record near $124 a barrel Wednesday and likely headed higher, it's widely expected the average price of gas will soon rise as high as $4. Motorists in many areas, including parts of California and Hawaii, are already paying that much, or more.

"If oil prices go the way that pundits are expecting, there's no way we'll stay under $4 a gallon," said Fadel Gheit, an analyst at Oppenheimer & Co. in New York.

Meanwhile, light, sweet crude for June delivery rose 16 cents to reach a settlement record of $123.69 a barrel on the New York Mercantile Exchange Thursday after spending much of the day in negative territory. But in after-market electronic trading, prices rose to a new trading record of $124.57; volume was quite low, making it easy for oil to keep pushing higher.

Analysts said there was little in the way of news driving Thursday's oil moves. Investors occasionally sell a little during rallies to lock in profits, Gheit said. But bullish momentum - and expectations that the dollar will continue to weaken against foreign currencies including the Euro - are likely to keep pushing oil to new records, he said.

Goldman Sachs analysts recently predicted prices will rise as high as $150 to $200 a barrel within two years. That forecast has driven much of oil's gains in recent days.

Analysts at Goldman and firms such as Barclays Capital believe tight global supplies and growing demand from fast-growing economies in countries such as China and India are driving oil higher. But Gheit and analysts including Tim Evans at Citi Futures Perspective argue that supply and demand fundamentals don't support such high prices.

"There is no reason why oil prices should be above $60," Gheit said, noting that domestic crude supplies are at average levels, and that refineries are cutting gasoline production as high prices cut consumers demand for fuel. "The physical supplies do not justify the price, it just doesn't make sense."

OPEC Secretary General Abdalla Salem El-Badri on Thursday reiterated his position that oil supplies are adequate, and that there is no need for the cartel to boost production. He said several Organization of Petroleum Exporting Countries oil projects are coming on line, but he noted that several member countries are having a hard time finding buyers for their additional supplies.

El-Badri agrees with analysts who feel speculative investment driven by the dollar's protracted decline is the real reason behind higher prices. The dollar fell against the Euro Thursday, attracting investors who view commodities such as oil as a hedge against inflation. Also, a weaker dollar makes oil cheaper to investors overseas.

Still, the market sometimes ignores the dollar, as it did Wednesday when oil surged to new records although the dollar advanced. Some analysts say that's a sign that many investors are buying on pure momentum - believing prices will head higher regardless of negative data, news or dollar movements.

"There's a lot of momentum driving the oil price up," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore.

In other Nymex trading, June gasoline futures rose 1.96 cents to settle at a record $3.1378 a gallon after earlier rising to a trading record of $3.14, and June heating oil futures rose 6.25 cents to settle at a record $3.5098 a gallon after earlier reaching their own trading record of $3.5152. June natural gas futures fell 6.4 cents to settle at $11.263 per 1,000 cubic feet. The Energy Department said natural gas inventories rose by 65 billion cubic feet last week, but remain slightly below the 5-year average.

In London, June Brent crude futures rose $1.40 to $121.72 a barrel on the ICE Futures exchange. A final settlement price wasn't available for Brent.

[tazmjam]

Pt.1
Some people have suggested Hedge Funds and Futures speculation may be to blame for rising oil prices. It appears they may not be that far off the mark. There are some Futures markets that are not regulated by CFTC. The OTC electronic markets was exempted from CFTC oversights and reporting requirements. No way to know who is buying or selling oil futures on OTC. Open to all kinds of greed or worse.. if someone wanted to sink the US economy this would be the way. Why is Washington and MSM ignoring this? PLEASE READ:

http://infowars.net/articles/may2008/050508oil.htm

Ref: article written by F. William Engdah
A June 2006 US Senate Permanent Subcommittee on Investigations report on %u201CThe Role of Market Speculation in rising oil and gas prices,%u201D noted, %u201C . . . there is substantial evidence supporting the conclusion that the large amount of speculation in the current market has significantly increased prices.%u201D
What the Senate committee staff documented in the report was a gaping loophole in US government regulation of oil derivatives trading so huge a herd of elephants could walk through it. That seems precisely what they have been doing in ramping oil prices through the roof in recent months.
The Senate report was ignored in the media and in the Congress.

[tazmjam]

Pt2
REF: http://infowars.net/articles/may2008/050508oil.htm

The report pointed out that the Commodity Futures Trading Commission, a financial futures regulator, had been mandated by Congress to ensure that prices on the futures market reflect the laws of supply and demand rather than manipulative practices or excessive speculation. The US Commodity Exchange Act states, %u201CExcessive speculation in any commodity under contracts of sale of such commodity for future delivery causing sudden or unreasonable fluctuations or unwarranted changes in the price of such commodity, is an undue and unnecessary burden on interstate commerce in such commodity.
The impact on market oversight has been substantial. NYMEX traders, for example, are required to keep records of all trades and report large trades to the CFTC.
In contrast to trades conducted on the NYMEX, traders on unregulated OTC electronic exchanges are not required to keep records or file Large Trader Reports with the CFTC, and these trades are exempt from routine CFTC oversight.
In contrast to trades conducted on regulated futures exchanges, there is no limit on the number of contracts a speculator may hold on an unregulated OTC electronic exchange, no monitoring of trading by the exchange itself, and no reporting of the amount of outstanding contracts at the end of each day.

Contact your Senator and Reps and tell them you want this loophole closed.

[gce65]

OF COURSE OIL PRICES ARE SOARING!

speculators, investment bankers and financial services institutions are throwing around the $150-$200 per barrel figure so they can create panic in the market and a self fulfilling prophecy. what do you think they''re investing in now that the housing bubble/subprime market has burst? OIL companies, OIL futures, OIL services corps.

[gce65]

face the facts: Bush/Cheney sold out your futures to exxon-mobil, halliburton, wall street firms, banks, etc. they are your new corporate masters. obey them. give them everything do not resist. consume. consume. consume.

Soylent green is...PEOPLE! --Charlton Heston
(now a green tablet somewhere)

[shanev137]

Keep taking it up.

Six dollars a gallon sounds like a good number.

It will be a good way to clean out our gene pool.

[underdogus]

Renewed expectations that the dollar will continued to weaken against foreign currencies such as the euro and the yen are likely to keep pushing oil to new records......

[andylance1]

Bill Nelson, Democratic senator from Florida, said we can''t afford the risk of allowing oil exploration off Florida''s tourist-laden beaches.

An L-shaped tract called "Area 181" south of Pensacola in the Gulf of Mexico was proposed as a location for new oil and gas exploration during the Clinton administration. But if drilling is allowed there, the oil industry would likely press for more, Nelson said.

"It looks like the proverbial nose of the camel getting under the tent," he said. "You''re going to find oil drilling all over the Gulf of Mexico."

Nelson doesn''t care if gas is $10 a gallon, just as long as we save Florida''s beaches for tourists. Of course, if gas is $10 a gallon, there won''t be any tourists in Florida. They won''t be able to afford to go there.

[prairiefox1]

I AM LOOKING FOR SOMEONE THAT WILL TAKE ACTION AGAINST THE HIGH COST OF OIL AND THE WAR!
THE OIL SITUATION IS PURE GREED!
THE FUTURES MARKET ALWAYS DRIVES UP THE COST OF OIL AND THE OIL COMPANIES ADD THEIR INCREASE! BUT OPEC WATCHES THE FUTURES MARKET AND INCREASES THE COST OF OIL SO THEY CAN GET THERE,S!
WE HAVE PLENTY OF OIL! THE OIL COMPANIES FIND OIL AND THEN CAP THE WELL! THEY TURN OFF THE ON SITE PUMPS SO THEY CAN CLAIM A SHORTAGE AND THEY KNOW WHERE THE OIL POOLS ARE BUT WHY DRILL FOR IT WHEN THEY ARE GETTING MOST OF THE MONEY? THEY KEEP A LIMITED AMOUNT OF REFINERIES SO THEY CAN CLAIM PRODUCTION IS THE CAUSE! WE NEED A PRESIDENT TO STOP THIS AND IN THE PROCESS REINSTATE THE ANTITRUST ACT!
AND THE CURRENT CANDIDATES JUST WONT CUT IT! THEY WILL GIVE US A CRUMB AND THIS RIP OFF WILL CONTINUE!

[lochlan-2009]

But Gheit and analysts including Tim Evans at Citi Futures Perspective argue that supply and demand fundamentals don''t support such high prices.

"There is no reason why oil prices should be above $60," Gheit said, noting that domestic crude supplies are at average levels, and that refineries are cutting gasoline production as high prices cut consumers demand for fuel. "The physical supplies do not justify the price, it just doesn''t make sense."


ARE WE EVER GOING TO GET THIS ADMINISTRATION BEHIND BARS?!!!

[valentin73]

Let it rise and let it continue to rise!!!!!
Americans are to blame for rising prices!!!
Driving gas guzzlers is one reason. Driving habits another reason, too much driving yet another...and so on.
If Americans earn high income in wages and want to drive, they should be able to pay any rise in gasoline prices.
If people want to drive...they should pay the price.

[huanaco]

GENTLEMEN ALL : IS THERE A PRESIDENT IN THIS SECOND RATE NATION ? RIGHT, WE ARE BECOMING THAT AND MORE WITH A GUY DISGUISED AS PRESIDENT UNABLE TO TAKE STEPS TO STOP THIS ABUSE . WHY HE DOESN.T OPEN THE SPITS IN THE ARMY RESERVE OIL FIELDS ? WHY HE DOESN.T PRESS THE SAUDIS IN PUMPING MORE OIL ? YOU KNOW WHY ? BECAUSE HE IS A SERVANT TO THEM. IMPEACH THE SUCKER .

[mcvet]

Well I guess Cheney''s SECRET Energy Policy is working REALLY well... for Big Oil... the rest of us have never matter to him. You all remember what he said when he was told WE the PEOPLE wanted the Iraq War for Oil ended don''t you? SO? ROFLMAO Sieg Heil Bush

[trillion1]

The ripple effect is already starting. Lower and middle income people are already cutting back on their driving and as retail prices go up cutting back on their shopping. The price of gas cuts across all of society. There will always be the morons that have to drive gas guzzlers even thought they don''t need them but there are fewer of them everyday. This ripple effect will keep growing as summer progresses.

[trillion1]

james, your posts get dumber and dumber.

[xlib]

Build refineries, drill in Anwar and off the coast of Florida (China is drilling off the coast of Cuba), roll back the horrendous taxes (gas in Pennsylvania is 40cents cheaper than in Western New York). Don''t tell me that paying on an average of 40 cents a gallon less would not help. For those of us who have to drive to work and fill up every week,that would be a good savings. No, I don''t drive a SUV, I drive a beetle.
The dem congress needs to get off it''s collective pampered, smug butts and do something.

[xlib]

mcvet-off topic as per usual. As for "the people telling Bush we want out of Iraq", isn''t that why you voted dem in 2006????? Why is YOUR dem congress funding the war?? Seems to me the ball was thrown in the dems court. Why is the war being funded?? Seems like you should start calling your politcal leaders comrade.

[trillion1]

Xlib keeps trying that favorite white elephat of all rightwing 20%ers. "Dem congress". A 2 vote majority is hardly control. Why not tell us all about what your guys did for the American people when they had total control of goverment for 7 years.

[element51]

Xlib....There is a possibililty that paying 40 cents less per gallon would help. But I must remind you that you are talking about the STATE tax on gas, not the FEDERAL tax. The proposal to have a tax holiday on gas over the summer applies to FEDERAL tax only which is 18.4 cents per gallon nationwide. Actually I question if even 40 cents per gallon would be wise in the long run. For one thing it would cause consumption to rise thus creating the opportunity for the oil companies to raise prices and it would also cause the loss of jobs and the continuing deterioration of the highway system which sooner or later would have to be repaired at taxpayer expense thus negating any savings from the tax holiday. All in all not a good plan.

[forthepeopl1]

ALL THEY HAVE TO DO IS MAKE ALL MORTGAGES FROM 2000 TO 2007 ALL GET RE-FI AT A GOOD RATE LIKE 1 OR 2 POINTS OVER PRIME, THATS ALL AND IT WOULD STOP EVERYTHING ONCE AND FOR ALL.

TAKE WHAT THE MORTGAGE IS NOW MINUS 60 % PERCENT OFF AND RE-FI EVERYONE..THIS WOULD STOP IT ALL, AND STOP PUTTING GOOD AMERICANS ON THE STREET.

I JUST HAD MY REALTOR APPRAISE MY HOME I BOUGHT 6 YEARS AGO, PAYED 300,000 FOR IT NOTHING SPECIAL IN A SMALL TOWN IN MASS, NOW HE SAID ITS WORTH MAYBE 150,000 BUT REALLY THINKS IT WORTH 100,000..SO GUESS WHAT WHAT THE BANK WILL OWN IT FOR 300,000 BECAUSE THEY DONT WANT TO HELP IN MAKEING THE VALUE THE 100,000 TO 150,000, AND EVEN AT THAT RATE HE SAID IS BETTER THAN WHAT THEY ARE GETTING AT FORCLOSER SALES, THEY ARE GETTING 20 TO 30 CENTS ON THE DOLLAR. SO IT WOULD MAKE SENCE TO JUST RE-FI EVERYONE AT 40 PERCENT AND START OVER. THIS WOULD STOP EVERYTHING...

[e-mail]

THIS IS ONLY WAY TO STOP ALL FORCLOSER

[tmarean]

stop futures trading in oil now... roll back prices to april 1, 2008 freeze trading till economy stablizes...lets join together and get this done to save America and the world as we know it...Timothy Marean

[andylance1]

In 1969, oil began leaking from an offshore drilling site off the California coast near Santa Barbara. The incident caused an environmental backlash in Congress that is responsible for today''s high gas prices.

Congress has not permitted any new oil refineries to be built since then. They have blocked all oil drilling off shore Florida and California.

All Florida politicians have gone ballistic whenever attempts to drill off the Florida Gulf Coast have been proposed. Their stock answer is NIMBY (Not In My Back Yard)

So the next time you are filling up your vehicle at a gas station.... don''t blame OPEC or the oil companies for the high price of gas, blame the idiots in Congress that have blocked all drilling off Florida and California. Under the Gulf of Mexico there is enough oil and gas to last for at least the next 100 years at $1.50 a gallon.

Sugar Land, Texas
May 10, 2008,
" Gasoline prices reach record highs again"

Houston Chronicle wrote a similar soft story last weeks ago about Texas prices are moving higher. Well, The Wall Street experts are spreading the word,for a GASOLINE SURPRISE...$ 4+ per gallon shortly and not $ 3.507.

There are too many people with vested interests in TEXAS , FLORIDA and other States who want the ''Status Quo'' and provide very little space for a small innovative company..
For the past six months (and many years before that period) I have been ''shouting in the wilderness'' and to major News Media that I have TECHNOLOGY and SYSTEMS to provide as much as 12 Billion gallons* [U.S.] of CLEAN BioEthanol at less than half the price of corn and other grains used to produce ETHANOL. I spent more than 30 years in R&D. and now need to Partner because it is a Business that requires adequate manpower who can move quickly to enter the markets and can operate on a worldwide basis. If -[The Chronicle]- wants to print the story in the public interest, and wants ''the rest of the story'' it is available. [e-mail] Not seeking funding for first commercial unit. Responses from Major U.S. International Companie(s). Howard Stern
5/6/2008 9:50 PM CDT

[crater7]

OBAMA BOAST HE IS "THE ONLY CANDIDATE THAT ISN''T TAKING A DIME FROM WASH. LOBBYIST," YET HIS FUNDRAISING TEAM INCLUDES 38 MEMBERS OF LAW FIRMS THAT WERE PAID $138 MILLION LAST YEAT TO LOBBY THE FEDERAL GOVERNMENT.

OBAMA, CLAIMS HE DOSEN''T ACCEPT ,MONEY FROM BIG OIL COMPANY''S, BUT EMPLOYEE''S AND LAWYERS, WORKING FOR BIG OIL COMPANY''S CONTINUE TO DONATE LARGE "MAXIMUM" CONTRIBUTIONS TO HIS CAMPAIGN.

IMAGINE THAT!!

GOD "BLESS" AMERICA. NOT "G D" AMERICA.

[msay3]

Instead of giving billions to Iraq for reconstruction, why not get Iraqi oil in exchange for the money we pour into that country????