High Gas Prices Not Going Away - SF Chronicle

[hatrack]

EDIT

"The forces that fueled last year's price hikes haven't gone away. China and India are burning as much oil as they can buy. So is the United States, whose drivers can't or won't conserve. Refineries are running close to capacity. And speculative investors are pouring money into the crude oil market, further driving up the price. Together, those forces may signal a fundamental shift in the oil and gasoline markets, many industry analysts say. With the worldwide demand for oil growing at historic rates, and with much of that growth based outside the United States, higher prices may be inescapable.

"For prices to come off substantially, we'd need to see a significant downturn in demand from China and the U.S.," said James Burkhard, director of oil market research for Cambridge Energy Research Associates. "So far, we don't see signs of any significant downturn in the world's demand growth."

Gasoline prices have followed a steady increase in the cost of crude, which is now approaching the record of $55 per barrel set last fall. Crude oil for April delivery neared $54 per barrel Monday. Prices for the two commodities don't quite move in tandem. Gasoline price hikes tend to lag behind increases in the cost of crude. So the recent run-up in oil may yet inflict further damage at the pump, even if crude prices level off.

The Organization of Petroleum Exporting Countries signaled this weekend that it is concerned about rising prices, with the cartel's president saying OPEC wants to "ensure market stability at a reasonable price." But many doubt that the organization will increase production and push prices down. In the past, OPEC tried to avoid prolonged periods of high crude prices for fear of triggering recessions around the world. But last year's run-up didn't stop China's breakneck growth and had little discernable effect on the U.S. economy."

EDIT

http://sfgate.com/cgi-bin/article.cgi?file=/c/a/2005/03/08/GASPRICES.TMP

[amber dog democrat]

1. psssssssst, wanna buy a Hummer cheap ?

Some of those lizzard mobiles will be going for a song not too far in the future.

[PaganPreacher]

3. I bought a motorcycle last year...

for just that reason (gas prices not going down.)

I drive about 600 miles a week, because of long commute distances (my work is 50 miles from my house, and it ain't moving any closer).

In the last 6 months of 2004, my fuel savings covered the monthly payments, even though I only rode from July through late October.



The Pagan Preacher
I don't turn the other cheek.

[NickB79]

5. Ya know, I could use a Hummer for cheap

Someone on another board pointed out how all that room inside, along with all that glass, would make them a wonderful mobile greenhouse :-) I could start my entire garden in it when there's still snow on the ground.

[amber dog democrat]

6. They would make a good spare bedroom to

for guests.

[spooked911]

2. Can anyone say "peak oil"?

this is the beginning of a very bad time for the world. Some people forecast that billions of people will die as oil supplies dwindle and impede economic growth as well as the simple ability to grow abundant crops.

[brokensymmetry]

7. Exactly!

Sadly, even among our own - Democrats/Progressives - the word isn't getting out. Perhaps we could click the "greatest" button on a few fine threads, such as this one?

[BlueJazz]

4. I'd love to see a major newspaper run past articles by such......

...visionaries as Rush Limbaugh and George Will on how our Fuel supplies will "Last until the middle of the 21st century".

I remember these idiots saying/writing such crap and just maybe it would show folks that these idiots never knew what they were talking about in the first place....