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Gas hitting $4.00+ really soon (like a week or so)
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Wolfman
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Expert: Gas Prices Dropping Like A Rock
Analyst Says Prices Could Go To $3.50 A Gallon By Labor Day
Reporting
Susan Carlson CHICAGO (CBS) ― Finally, there's some good news about gas prices. They've dropped nationwide by about a nickel, and as CBS 2's Susan Carlson reports, analysts are predicting even bigger drops through the rest of the summer.
For the first time in awhile, drivers can fill up at the pump without a pained expression.
"We saw a substantial drop in the price of crude oil, which it appears gas station owners were in a hurry to pass on to consumers," said Phill Flynn, Vice President an Senior Market Analyst at Alaron Trading.
AAA reports gas prices in the Chicago area are averaging $4.25 a gallon Wednesday. That's down from $4.27 Tuesday, and $4.33 last Friday.
"So often we hear gas prices rise like a rocket and drop like a feather, this time, they're starting to drop like a rock and that's a good thing," Flynn said.
That's partly because demand is down about 4 percent from where it usually is. Many people have put the brakes on driving this summer because it costs too much.
The promise of a bargain has many people flocking over the border. At a gas station on Indianapolis Boulevard in Hammond, Ind., CBS 2 found gas for just $3.75 a gallon.
"I rehab houses in the area, Gary and so forth, so it's worth the while to drive over from Crete," said Troy Brown.
Customers are pouring into Luke's Gas Station from the south suburbs and other parts of Indiana.
"I'm just over in Highland, a few miles away, and as soon as you cross over into Hammond, the gas is at least 10 cents cheaper," Suzanne Stinnett said.
But soon, you may not have to go as far as Hammond to get a good deal. Analysts say right now, gas prices are on track to keep plummeting through the end of the summer.
"We could see $3.70 in the city and if we get really lucky, maybe $3.50 by Labor Day," Flynn said.
Analyst Says Prices Could Go To $3.50 A Gallon By Labor Day
Reporting
Susan Carlson CHICAGO (CBS) ― Finally, there's some good news about gas prices. They've dropped nationwide by about a nickel, and as CBS 2's Susan Carlson reports, analysts are predicting even bigger drops through the rest of the summer.
For the first time in awhile, drivers can fill up at the pump without a pained expression.
"We saw a substantial drop in the price of crude oil, which it appears gas station owners were in a hurry to pass on to consumers," said Phill Flynn, Vice President an Senior Market Analyst at Alaron Trading.
AAA reports gas prices in the Chicago area are averaging $4.25 a gallon Wednesday. That's down from $4.27 Tuesday, and $4.33 last Friday.
"So often we hear gas prices rise like a rocket and drop like a feather, this time, they're starting to drop like a rock and that's a good thing," Flynn said.
That's partly because demand is down about 4 percent from where it usually is. Many people have put the brakes on driving this summer because it costs too much.
The promise of a bargain has many people flocking over the border. At a gas station on Indianapolis Boulevard in Hammond, Ind., CBS 2 found gas for just $3.75 a gallon.
"I rehab houses in the area, Gary and so forth, so it's worth the while to drive over from Crete," said Troy Brown.
Customers are pouring into Luke's Gas Station from the south suburbs and other parts of Indiana.
"I'm just over in Highland, a few miles away, and as soon as you cross over into Hammond, the gas is at least 10 cents cheaper," Suzanne Stinnett said.
But soon, you may not have to go as far as Hammond to get a good deal. Analysts say right now, gas prices are on track to keep plummeting through the end of the summer.
"We could see $3.70 in the city and if we get really lucky, maybe $3.50 by Labor Day," Flynn said.
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Oil Falls Below $125 as U.S. Fuel Supplies Gain, Demand Drops
By Mark Shenk
July 23 (Bloomberg) -- Crude oil futures fell below $125 a barrel for the first time in seven weeks after a U.S. government report showed that fuel stockpiles increased as consumption tumbled to the lowest in more than a year.
Gasoline supplies rose 2.85 million barrels last week, the Energy Department reported. Stockpiles of distillate fuel, a category that includes heating oil and diesel, climbed 2.42 million barrels. U.S. fuel demand averaged 19.9 million barrels a day, the lowest since January 2007.
``The inventory and demand numbers make it clear that demand is being affected by high prices and the weak economy,'' said Kyle Cooper, an analyst at IAF Advisors in Houston. ``The 19.9 million barrel demand number is incredibly low and has to have the bulls worried.''
Crude oil for September delivery fell $3.98, or 3.1 percent, to settle at $124.44 a barrel at 2:59 p.m. on the New York Mercantile Exchange, the lowest close since June 4. Futures are up 66 percent from a year ago.
``Technically, we are looking for oil to settle below $121.61 and $120.75 a barrel, which were lows before the start of summer,'' said Michael Fitzpatrick, vice president for energy risk management at MF Global Ltd. in New York. ``If we do, you can expect the market to break down further.''
By Mark Shenk
July 23 (Bloomberg) -- Crude oil futures fell below $125 a barrel for the first time in seven weeks after a U.S. government report showed that fuel stockpiles increased as consumption tumbled to the lowest in more than a year.
Gasoline supplies rose 2.85 million barrels last week, the Energy Department reported. Stockpiles of distillate fuel, a category that includes heating oil and diesel, climbed 2.42 million barrels. U.S. fuel demand averaged 19.9 million barrels a day, the lowest since January 2007.
``The inventory and demand numbers make it clear that demand is being affected by high prices and the weak economy,'' said Kyle Cooper, an analyst at IAF Advisors in Houston. ``The 19.9 million barrel demand number is incredibly low and has to have the bulls worried.''
Crude oil for September delivery fell $3.98, or 3.1 percent, to settle at $124.44 a barrel at 2:59 p.m. on the New York Mercantile Exchange, the lowest close since June 4. Futures are up 66 percent from a year ago.
``Technically, we are looking for oil to settle below $121.61 and $120.75 a barrel, which were lows before the start of summer,'' said Michael Fitzpatrick, vice president for energy risk management at MF Global Ltd. in New York. ``If we do, you can expect the market to break down further.''
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Arctic May Hold 90 Billion Barrels of Oil, U.S. Says
By Joe Carroll
July 23 (Bloomberg) -- The Arctic may hold 90 billion barrels of oil, more than all the known reserves of Nigeria, Kazakhstan and Mexico combined, and enough to supply U.S. demand for 12 years, the U.S. Geological Survey said.
One-third of the undiscovered oil is in Alaskan territory, the agency found in a study released today. By contrast, a geologic formation beneath the North Pole claimed by Russian scientists last year probably holds just 1.2 percent of the Arctic's crude, the U.S. report showed.
Energy producers such as Royal Dutch Shell Plc and Chevron Corp. have accelerated exploration of the northernmost regions for untapped reserves amid record prices and receding access to deposits in more hospitable climates. Russia's move to scrap a United Nations convention and carve out an exclusive Arctic zone sparked protests from Canada, the U.S., Norway and Denmark.
``Most of the Arctic, especially offshore, is essentially unexplored with respect to petroleum,'' Donald Gautier, the project chief for the assessment, said in the report. ``The extensive Arctic continental shelves may constitute the geographically largest unexplored prospective area for petroleum remaining on Earth.''
Russia dispatched a nuclear-powered icebreaker to the Arctic Ocean last year to map a subsea link between Siberia and the North Pole as part of a bid to refute a UN convention limiting resource claims beyond 200 miles (321 kilometers) offshore. Canada said earlier this month that it plans to counter the Russian overture with ``a very strong claim'' to Arctic exploration rights.
No Time Estimate
The U.S. report didn't include an estimate for how long it will take to bring the reserves to markets. Offshore fields in the Gulf of Mexico and West Africa can take a decade or longer to begin pumping oil.
The geologists studied maps of subterranean rock formations across the 8.2 million square miles above the Arctic Circle to find areas with characteristics similar to oil and gas finds in other parts of the world.
The study also took into account the age, depth and shape of rock formations in judging whether they are likely to contain oil, Gautier said today during a conference call with reporters. Seismic data doesn't yet exist for most of the Arctic, he said.
``Petroleum doesn't just occur anywhere,'' Gautier said. ``It requires a very narrow set of burial conditions.''
U.S. oil executives such as Exxon Mobil Corp.'s Rex Tillerson and Chevron Corp.'s David O'Reilly have urged lawmakers to relax prohibitions against offshore drilling, including much of Alaska. Democratic leaders in both houses of Congress rejected President George W. Bush's July 14 effort to end a 25-year moratorium on drilling in most coastal waters.
By Joe Carroll
July 23 (Bloomberg) -- The Arctic may hold 90 billion barrels of oil, more than all the known reserves of Nigeria, Kazakhstan and Mexico combined, and enough to supply U.S. demand for 12 years, the U.S. Geological Survey said.
One-third of the undiscovered oil is in Alaskan territory, the agency found in a study released today. By contrast, a geologic formation beneath the North Pole claimed by Russian scientists last year probably holds just 1.2 percent of the Arctic's crude, the U.S. report showed.
Energy producers such as Royal Dutch Shell Plc and Chevron Corp. have accelerated exploration of the northernmost regions for untapped reserves amid record prices and receding access to deposits in more hospitable climates. Russia's move to scrap a United Nations convention and carve out an exclusive Arctic zone sparked protests from Canada, the U.S., Norway and Denmark.
``Most of the Arctic, especially offshore, is essentially unexplored with respect to petroleum,'' Donald Gautier, the project chief for the assessment, said in the report. ``The extensive Arctic continental shelves may constitute the geographically largest unexplored prospective area for petroleum remaining on Earth.''
Russia dispatched a nuclear-powered icebreaker to the Arctic Ocean last year to map a subsea link between Siberia and the North Pole as part of a bid to refute a UN convention limiting resource claims beyond 200 miles (321 kilometers) offshore. Canada said earlier this month that it plans to counter the Russian overture with ``a very strong claim'' to Arctic exploration rights.
No Time Estimate
The U.S. report didn't include an estimate for how long it will take to bring the reserves to markets. Offshore fields in the Gulf of Mexico and West Africa can take a decade or longer to begin pumping oil.
The geologists studied maps of subterranean rock formations across the 8.2 million square miles above the Arctic Circle to find areas with characteristics similar to oil and gas finds in other parts of the world.
The study also took into account the age, depth and shape of rock formations in judging whether they are likely to contain oil, Gautier said today during a conference call with reporters. Seismic data doesn't yet exist for most of the Arctic, he said.
``Petroleum doesn't just occur anywhere,'' Gautier said. ``It requires a very narrow set of burial conditions.''
U.S. oil executives such as Exxon Mobil Corp.'s Rex Tillerson and Chevron Corp.'s David O'Reilly have urged lawmakers to relax prohibitions against offshore drilling, including much of Alaska. Democratic leaders in both houses of Congress rejected President George W. Bush's July 14 effort to end a 25-year moratorium on drilling in most coastal waters.
natedagg
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oil falling all the way into the elections.
demand destruction as world slows down, china imposes driving restrictions to clean up.
ST dollar strength and fed w/ hawkish jawboning.
most importantly: the psychology of that the oil bubble has popped.
looks like rotation back into equities, with some financials doubling in 6 days. What the heck else to do with money, put it into treasuries and admit defeat?
The pigmen are going to crash the damn bond market with this freddie/fannie bailout, rates will skyrocket, housing will be f'ed, and the whole damn thing is coming down. Either that or we keep exporting our inflation via SWF's purchasing t's, but how much can China/ME take? Or rather, why not let the crash happen then scoop up US assets on the cheap?
Anyway, got a little OT there, but I like oil to 100 or less = cheaper gas. Yay consumers! Yay America!
demand destruction as world slows down, china imposes driving restrictions to clean up.
ST dollar strength and fed w/ hawkish jawboning.
most importantly: the psychology of that the oil bubble has popped.
looks like rotation back into equities, with some financials doubling in 6 days. What the heck else to do with money, put it into treasuries and admit defeat?
The pigmen are going to crash the damn bond market with this freddie/fannie bailout, rates will skyrocket, housing will be f'ed, and the whole damn thing is coming down. Either that or we keep exporting our inflation via SWF's purchasing t's, but how much can China/ME take? Or rather, why not let the crash happen then scoop up US assets on the cheap?
Anyway, got a little OT there, but I like oil to 100 or less = cheaper gas. Yay consumers! Yay America!
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The problem with all this is that we are one severe Gulf Hurricane/Middle East War (Israel) away from another catastrophic rise in gas. We still have very little energy independence and are subject to the chaos of the world market. I hope this dip in prices doesn't lead anyone to believe that we shouldn't still be vigorously and frantically looking for sustainable and cheaper alternative sources.
Lee
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wow, i just paid 3.84 here in phoenix
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Spark Fuel on Cave Creek and Bell would have saved you another nickel. :chuckles:
Lee
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how do you know i live 2 miles from that interesection? Did I mention where I lived or are you stalking me? lol (if you are stalking, you live a boring life)..and i just looked, i dont think they are that cheap right now.
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Turn around...I'm standing right behind you!!!
Actually i happened to be checking www.Gasbuddy.com to see what was the lowest around Cleveland....I was shocked to pay 3.53 this morning. After your post I checked Phoenix and that station was the lowest.
Lee
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Turn around...I'm standing right behind you!!!
Actually i happened to be checking www.Gasbuddy.com to see what was the lowest around Cleveland....I was shocked to pay 3.53 this morning. After your post I checked Phoenix and that station was the lowest.
thats good to know, there are probably 20 different gas stations with in 3 miles of my house, phoenix is insane on things like that.
David
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