WTB...cheap gas.
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Here is something to ponder...
CNBC Market Dispatches
9/1/2005 5:49:22 AM ET
Gas prices leap 50 cents in a single day
Supply shortages spur prices above $5 in Georgia, but analysts warn everyone will see big increases. It's a gasoline problem, not a crude problem, they say -- and it's temporary.
Gas prices nationwide are spiking almost as fast as station owners can change their signs, the result of fuel pipeline shutdowns and delayed deliveries since Hurricane Katrina devastated Louisiana and Mississippi earlier this week.
Stations in and around downtown Atlanta had temporarily run out of gas, the Associated Press reported. The same was reported elsewhere, including parts of North Carolina, West Virginia, Wisconsin and Arizona. Many retailers who did have gas had no clue when their next shipments would come in.
"Everybody is panicking. They think there's not going to be any gas," said Keturah Jackson, a clerk at a gas station in Atlanta's upscale Buckhead district.
Gas prices jumped by more than 50 cents a gallon Wednesday in Ohio, 40 cents in Georgia and 30 cents in Maine. Reports of gouging surfaced as some stations in Georgia were reported to be charging as much as $6 a gallon.
The situation was worse in areas closer to the hurricane's path. In southwest Alabama, gas lines of 100 cars were commonplace early Thursday, extending out onto entrance ramps along Interstate 10. And most of the gas stations were closed, not for a lack of gas but for a lack of electricity to pump it. People were sitting in their cars for hours in anticipation of when power would be restored and the pumps working again.
How high can gas go? "I do think there will be pockets of stations in the country in the next two weeks that will price $4 (per gallon)," Ben Brockwell, independent analyst and director of Pricing and Data Services, told CNBC.
Though the latest data shows the nationwide gas price average $2.68 a gallon, the real figure could be 10 to 20 cents higher given reports that some stations are changing prices up to three times daily, said AAA spokesman Geoff Sundstrom.
The U.S. motorist group has received a number of complaints from members about the rapid rise in prices, alongside reports of prices topping $3 in many parts of the country, he said.
One cab driver says he watched in amazement as a New York gas station billboard price was changed from $2.91 a gallon to $3.49 even as he filled his tank on Wednesday night.
"If the price keeps going up like this, I may just have to quit driving this cab for a while," he said.
The increases followed price spikes on wholesale and futures markets Tuesday and Wednesday after the hurricane knocked off-line refineries and pipeline links along the Gulf Coast that provide about a third of the country's gasoline supplies. The good news? Analysts expect that prices will ease once supplies are restored.
President Bush, in an interview Thursday morning, called on motorists to cut back on driving where possible. "I would hope Americans conserve if given a choice," he said.
Keeping up with the change
Service station manager Randy Schuette is getting quite a workout changing the gasoline prices on his station's large sign.
"I bet I'm not done, either," he said Wednesday, hoisting price placards with a 20-foot pole at his station in Bismarck, N.D. At one point, he ran out of decimals, so a gallon's cost read $317.
"I don't have any three's with decimal points," he said. "Never needed them. I'm assuming people know that it's not $317 a gallon, but the day's not over yet, either."
"It's crazy," said Mike Currie of Bismarck, shaking his head as he topped off his truck's tank with gas. "I'm going to have to consider buying a Moped."
Painful but temporary
In addition to the devastation to lives and property, the hurricane aimed an ill-timed blast at a U.S. energy infrastructure already stretched thin, especially in the capacity to refine oil into gasoline, heating oil and other products. The shutdown of oil platforms, refineries and pipelines along the Gulf Coast drove energy prices sharply higher Tuesday.
Oil prices eased slightly on Wednesday after the White House said it planned to tap the Strategic Petroleum Reserve to deal with any shortages of crude caused by Hurricane Katrina. But gasoline prices continued to rise, both at the wholesale and retail levels.
CNBC Market Dispatches
9/1/2005 5:49:22 AM ET
Gas prices leap 50 cents in a single day
Supply shortages spur prices above $5 in Georgia, but analysts warn everyone will see big increases. It's a gasoline problem, not a crude problem, they say -- and it's temporary.
Gas prices nationwide are spiking almost as fast as station owners can change their signs, the result of fuel pipeline shutdowns and delayed deliveries since Hurricane Katrina devastated Louisiana and Mississippi earlier this week.
Stations in and around downtown Atlanta had temporarily run out of gas, the Associated Press reported. The same was reported elsewhere, including parts of North Carolina, West Virginia, Wisconsin and Arizona. Many retailers who did have gas had no clue when their next shipments would come in.
"Everybody is panicking. They think there's not going to be any gas," said Keturah Jackson, a clerk at a gas station in Atlanta's upscale Buckhead district.
Gas prices jumped by more than 50 cents a gallon Wednesday in Ohio, 40 cents in Georgia and 30 cents in Maine. Reports of gouging surfaced as some stations in Georgia were reported to be charging as much as $6 a gallon.
The situation was worse in areas closer to the hurricane's path. In southwest Alabama, gas lines of 100 cars were commonplace early Thursday, extending out onto entrance ramps along Interstate 10. And most of the gas stations were closed, not for a lack of gas but for a lack of electricity to pump it. People were sitting in their cars for hours in anticipation of when power would be restored and the pumps working again.
How high can gas go? "I do think there will be pockets of stations in the country in the next two weeks that will price $4 (per gallon)," Ben Brockwell, independent analyst and director of Pricing and Data Services, told CNBC.
Though the latest data shows the nationwide gas price average $2.68 a gallon, the real figure could be 10 to 20 cents higher given reports that some stations are changing prices up to three times daily, said AAA spokesman Geoff Sundstrom.
The U.S. motorist group has received a number of complaints from members about the rapid rise in prices, alongside reports of prices topping $3 in many parts of the country, he said.
One cab driver says he watched in amazement as a New York gas station billboard price was changed from $2.91 a gallon to $3.49 even as he filled his tank on Wednesday night.
"If the price keeps going up like this, I may just have to quit driving this cab for a while," he said.
The increases followed price spikes on wholesale and futures markets Tuesday and Wednesday after the hurricane knocked off-line refineries and pipeline links along the Gulf Coast that provide about a third of the country's gasoline supplies. The good news? Analysts expect that prices will ease once supplies are restored.
President Bush, in an interview Thursday morning, called on motorists to cut back on driving where possible. "I would hope Americans conserve if given a choice," he said.
Keeping up with the change
Service station manager Randy Schuette is getting quite a workout changing the gasoline prices on his station's large sign.
"I bet I'm not done, either," he said Wednesday, hoisting price placards with a 20-foot pole at his station in Bismarck, N.D. At one point, he ran out of decimals, so a gallon's cost read $317.
"I don't have any three's with decimal points," he said. "Never needed them. I'm assuming people know that it's not $317 a gallon, but the day's not over yet, either."
"It's crazy," said Mike Currie of Bismarck, shaking his head as he topped off his truck's tank with gas. "I'm going to have to consider buying a Moped."
Painful but temporary
In addition to the devastation to lives and property, the hurricane aimed an ill-timed blast at a U.S. energy infrastructure already stretched thin, especially in the capacity to refine oil into gasoline, heating oil and other products. The shutdown of oil platforms, refineries and pipelines along the Gulf Coast drove energy prices sharply higher Tuesday.
Oil prices eased slightly on Wednesday after the White House said it planned to tap the Strategic Petroleum Reserve to deal with any shortages of crude caused by Hurricane Katrina. But gasoline prices continued to rise, both at the wholesale and retail levels.
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6,675 Posts
i agree........it's temporary. there is no shortage right now. the gas "Futures" are what's driving the price up. this is all at a white-collar level........
it'll settle down by December or shortly into the new year. then we'll just see $3.00 a gallon and be happy about it..........
it'll settle down by December or shortly into the new year. then we'll just see $3.00 a gallon and be happy about it..........
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506 Posts
hold on one second here .... now just suspose that the media didn't
announce (a week before Katrina hit) What would happen to the gas prices ????? the media has been hyping about how the gas prices will be
going through the roof long before Katrina showed up ... so now the
G/C's have a legit excuse my $ 2.00 ( because 2 cents don't get you shit )
announce (a week before Katrina hit) What would happen to the gas prices ????? the media has been hyping about how the gas prices will be
going through the roof long before Katrina showed up ... so now the
G/C's have a legit excuse my $ 2.00 ( because 2 cents don't get you shit )
Joined
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6,675 Posts
the media is part of the problem, fo sure. if enough hype is made, then people in the stock exchange get hinky, and pay more for gas, thinking it'll be worth more later. hence the term "Futures". the price is being driven up by people's FEAR of having to pay more. there is no shortage, but people are acting like there's gonna be.
if stock exchangers are currently paying $60 a barrel for crude, but think it's going up to $70 in a week, they'll gladly pay $65 today, trying to make money, or save money depending on who you are in the market, to beat that $70. a barrel price that's coming later, or projected to. the price per barrel starts going up and if the fear keeps getting fueled, then it just keeps going.........
ironic, since the media, who hates Bush the most, is only helping the petroleum industry (who they hate even more) make more money for doing less.............
if stock exchangers are currently paying $60 a barrel for crude, but think it's going up to $70 in a week, they'll gladly pay $65 today, trying to make money, or save money depending on who you are in the market, to beat that $70. a barrel price that's coming later, or projected to. the price per barrel starts going up and if the fear keeps getting fueled, then it just keeps going.........
ironic, since the media, who hates Bush the most, is only helping the petroleum industry (who they hate even more) make more money for doing less.............
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1,782 Posts
The price increases of the last few days aren't related to the stock market or the price of crude. In fact, I don't think the price of oil per barrel has gone up since the hurricane (perhaps slightly, but I'm not sure).
The price increase over the last couple days is a true supply/demand issue. We have plenty of crude, and we probably have plenty of gasoline for awhile even if the hurricane did knock out some refinery capacity. But we don't have a plenty of gasoline in some places because the supply network is damaged.
True, people in some cities (Atlanta, for example) were acting hysterically and helping drive up the price even more. But when gas stations are actually running out of gas, it's not an imaginary problem. Hopefully the supply issues are short term, and when they're fixed the price should go back down to last week's prices. I never thought I'd be happy to see last week's prices!
The price increase over the last couple days is a true supply/demand issue. We have plenty of crude, and we probably have plenty of gasoline for awhile even if the hurricane did knock out some refinery capacity. But we don't have a plenty of gasoline in some places because the supply network is damaged.
True, people in some cities (Atlanta, for example) were acting hysterically and helping drive up the price even more. But when gas stations are actually running out of gas, it's not an imaginary problem. Hopefully the supply issues are short term, and when they're fixed the price should go back down to last week's prices. I never thought I'd be happy to see last week's prices!
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389 Posts
If anything comes out of this mess, I'll bet a few more refineries get built over the next few years. I'm lucky, my truck is a diesel and it is still at 2.68 a gallon.
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3,484 Posts
This is gotten to be a joke here in Atlanta.....went to a station today that had gas at 2.89 when all the other stations were at 3.15....just as I went to put the nozzle in my tank, the manager came out with a black plastic bag to put on the "regular" nozzle....he had run out of regular...apologized most sincerely....I just laughed and drove off.....not his fault. There are many reports of humanoid bipeds filling up and driving off....they should NOT be arrested....shot at point blank range, yes, arrested, no. Goes double for anyone in Buckhead....not just the driver, but passengers as well.....thinning the herd is good wildlife management.Baasinator said:
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21 Posts
You'll know its bad when the Banks start putting loan applications next to the pumps.
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