Gasoline Prices Reach Record Highs
U.S. Attorney Benjamin Wagoner responds to a question concerning the charges his office have filed against two Sacramento County Sheriff's deputies accused of illegally selling dozens of weapons, at a news conference in Sacramento, Calif., Friday, June 1, 2012. Deputies Ryan McGowan, 31, and Thomas Lu, 42, face charges of trafficking in handguns that cannot be legally bought by citizens in California.(AP Photo/Rich Pedroncelli) / Rich Pedroncelli
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.
© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. 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 $121.72 a barrel on the ICE Futures exchange. A final settlement price wasn't available for Brent.
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OBAMA, CLAIMS HE DOSEN''T ACCEPT ,MONEY FROM BIG OIL COMPANY''S, BUT EMPLOYEE''S AND LAWYERS, WORKING FOR BIG OIL COMPANY''S CONTINUE TO DONATE LARGE "MAXIMUM" CONTRIBUTIONS TO HIS CAMPAIGN.
IMAGINE THAT!!
GOD "BLESS" AMERICA. NOT "G D" AMERICA.
May 10, 2008,
" Gasoline prices reach record highs again"
Houston Chronicle wrote a similar soft story last weeks ago about Texas prices are moving higher. Well, The Wall Street experts are spreading the word,for a GASOLINE SURPRISE...$ 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. sternh@alltel.net Not seeking funding for first commercial unit. Responses from Major U.S. International Companie(s). Howard Stern
5/6/2008 9:50 PM CDT
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.
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...
for-america@hotmail.com
THIS IS ONLY WAY TO STOP ALL FORCLOSER
The dem congress needs to get off it''s collective pampered, smug butts and do something.