Posted tagged ‘Oil Prices’

$4 Gas a Reality for Many Americans

March 28, 2012

$4/gallon for gas? If only I could get it that cheap!!! I paid $4.59 just this morning in the Silicon Valley…

Sadly, the price of an average gallon of regular gas surpassed the $3.90 mark yesterday, which has the price of gas within 10 cents of the $4 threshold. Crazy!

From CNN Money:

The current price compares to just below $3.70 a month ago, and just below $3.59 a year ago.

Gasoline averages more than $4 a gallon in 10 states and the District of Columbia. At $4.55 a gallon, Hawaii has the nation’s highest pump price.

Prices are less than a nickel away from $4 a gallon in Nevada and Wisconsin.

Wyoming has the nation’s lowest gas prices, averaging nearly $3.51 a gallon.

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Don’t Expect Cheap Gas Forever

January 6, 2009

Damn! And I was just getting used to filling up my car for $20.

The cheap oil that’s providing relief to drivers and businesses in this sluggish economy is setting the stage for another price spike, perhaps as soon as next year, that will bring back painful memories of last summer’s $4-a-gallon gas.

From the Associated Press:

The oil industry is scaling back on exploration and production because some projects don’t make economic sense when energy prices are low. And crude is already harder to find because more nations that own oil companies are blocking outside access to their oil fields.

When the world emerges from the recession and starts to burn more fuel again, and higher demand meets lower supply, prices will almost certainly shoot higher.

Some analysts say oil could eventually eclipse $150 a barrel, maybe even on its way to $200. In such a scenario, gasoline would easily cost more than the record high of $4.11 a gallon set last summer. Oil trades at about $50 today.

No one knows for sure, but some analysts say the spike could happen as soon as next year, perhaps in 2011 or 2012.

“I think those supply limits will come back to bite with a vengeance,” said Sean Brodrick, a natural resources analyst at Weiss Research Inc.

High prices at the pump last summer — more than $4 per gallon for gas on average — helped slash demand for oil. From November 2007 to October 2008, Americans drove 100 billion fewer miles than the year before, according to government figures. The nation’s biggest automakers lurched toward bankruptcy as sales of sport utility vehicles and trucks plummeted.

“We wouldn’t be bailing out the automobile industry today … had we not had this crazy situation with oil prices,” said Daniel Yergin, chairman of Cambridge Energy Research Associates, a consulting firm, and author of “The Prize,” the Pulitzer Prize-winning history of the oil industry.

Oil giants like Exxon Mobil, Chevron and ConocoPhillips have yet to announce their 2009 capital spending plans, but analysts say even the cash-rich companies are likely to shelve some projects.

Gas to Hit $1 a Gallon?

December 5, 2008

I can’t believe it but it may be true! Oil prices hit four-year lows Friday as employers cut the highest number of jobs in 34 years. The continuing decline in prices is so dramatic and so sudden that it is raising the prospect that gas prices could soon fall below $1 a gallon.

Energy Information Administration

Credit: Energy Information Administration

From the Associated Press:

The worst jobs data in 34 years on Friday just added more fuel to the deepening global recession as U.S. employers slashed a far worse-than-expected 533,000 jobs in November and the unemployment rate rose to a 15-year high of 6.7 percent.

A gallon of gasoline can be had for 50 cents less than it cost just last month, and people are starting to talk about $1 gas.

Granted, gas prices are a long way off from that magic number last seen in March 1999 when prices were at 97 cents a gallon, according to motor club AAA. Prices at the pump fell 1.6 cents overnight to $1.773 nationally, according to AAA, the Oil Price Information Service and Wright Express.

But consider what has happened since July 11 when a barrel of oil hit a record $147.27 and a gallon of gas was $4.117 on July 17. In less than five months, oil has fallen 72 percent.

Just this week, in which the National Bureau of Economic Research determined that the U.S. is in recession, oil has fallen 25 percent.

On Friday, light, sweet crude for January delivery settled at $40.81 a barrel on the New York Mercantile Exchange, down by nearly $3 per barrel. Prices fell as low at $40.50, levels last seen in December 2004.

For gas prices to get close to a $1, oil prices probably would need to fall another $10 a barrel — something that would have impossible to fathom during first part of this year as oil prices soared near $150 per barrel.

Exxon Earns Record Profits

October 30, 2008

So nice to hear that a someone is doing so well while the rest of the economy tanks!

The company reported income earler today that shattered its own record for the biggest profit from operations by a U.S. corporation, earning $14.83 billion in the third quarter. That’s $14.83 BILLION! I guess at $4.00 a gallon, they were doing ok. Thank god I finally got gas in San Jose this morning for $2.99. Maybe by Christmas it’ll be $2.49! I can dream.

From the Associated Press:

The Irving, Texas-based company has reported unprecedented back-to-back quarters, the end of the most recent coinciding with a rapid plunge in crude prices. Benchmark oil prices fell another $2.21 to $65.29 Thursday on the New York Mercantile Exchange, about 56 percent off record highs in July.

Exxon said net income jumped nearly 58 percent to $2.86 a share in the July-September period. That compares with $9.41 billion, or $1.70 a share, a year ago.

The previous record for U.S. corporate profit was set in the last quarter, when Exxon Mobil earned $11.68 billion.

Revenue rose 35 percent to $137.7 billion.

Oil producers are coming off a quarter during which crude prices reached an all-time high of $147.27 — and their profits have reflected it. Crude prices, however, have quickly fallen 50 percent from the summer’s highs, and the global economic malaise has raised questions about energy demand at least into 2009.

Some companies, especially smaller producers, are scaling back spending on new exploration and production projects because of the uncertainty, though analysts say that its less likely to happen at the well-heeled giants like Exxon Mobil.

Gas Drops Below $2 a Gallon…In Ohio

October 28, 2008

Gas prices have fallen below $2 a gallon at a few stations in the Cincinnati areas as the impact of plunging oil prices and reduced driving are finally taking hold here in the United States.

From the Associated Press:

The Web site GasBuddy.com, where consumers post prices they spot, said a few stations in the Cincinnati suburbs were now charging $1.99 for regular.

The national average for a gallon of regular fell 3 cents overnight to $2.668, according to auto club AAA, the Oil Price Information Service and Wright Express. That’s roughly a dollar less than what was paid just a month ago — and the cheapest since March 2007, the Energy Department said on Monday.

Only three states — Alaska, California and Hawaii — have average prices for regular grade above $3 a gallon, AAA said.

Gasoline prices have been sliding as oil prices have dropped to the lowest level in more than a year, dipping below $62 a barrel at one point Monday. Oil prices have plunged 57 percent from a record $147.27 on July 11.

Iranian President Suffering from Extreme Exhaustion

October 27, 2008

Iranian President Mahmoud Ahmadinejad said this weekend that he is suffering from exhaustion and two allies said he was suffering under the strain of his job. This is a rare disclosure apparently designed to combat rumors the leader of Iran could be more seriously ill than he is leading on.

From the Associated Press:

A parliament member who confirmed Ahmadinejad’s illness accused opponents of using it as an excuse to cast doubt on whether the increasingly unpopular president will run for a second term next year.

“Those who use such a natural issue for psychological warfare will fail” to gain support in public opinion, said Parliament member Mohammad Ismail Kowsari. Since the 1979 Islamic revolution, every Iranian president has been re-elected to a second term, except the first one, Abolhasan Banisadr, who fled the country in 1981.

The months ahead are critical for Ahmadinejad if he wants to try to rebuild his political base and rebut critics who point to his unfulfilled campaign promises, including his pledge to extend Iran’s oil revenues to poorer provinces around the country.