Gas Prices Jump Back Above $3

MJMANDALAY

Registered User
Jan 26, 2005
13,145
1
0
#1
NEW YORK (Nov. 5) -- Gasoline prices jumped back above $3 a gallon at the pump Monday even as concerns about the economy and increases in crude supplies sent oil prices lower. Retail gas prices have been slow to catch up with soaring crude prices, which have gained nearly 39% since late August to a trading high of $96.24 on Thursday. Gas prices only started rising steadily in mid-October.

The national average price of a gallon of gas rose 1.5 cents overnight to $3.004, and has jumped almost 25 cents in three weeks, according to AAA and the Oil Price Information Service.

The sharp jump in gas prices could continue if oil keeps surging to new heights.

"The consumer has been relatively isolated from these prices," said Amanda Kurzendoerfer, commodities analyst at Summit Energy Services in Louisville.

But, she said, if oil prices don't retreat, gas prices could reach $3.50 or $4 a gallon by next summer.

Crude, meanwhile, fell more than $1 a barrel Monday as uncertainty about the economy and expanding supplies motivated investors to pocket gains. Prices have risen in recent weeks on concerns about falling inventories and potential supply disruptions.

Foremost on investors minds was the situation at Citigroup (C), which warned Sunday it would take additional losses of $8 billion to $11 billion due in part to its exposure to risky mortgage debt. The announcement came as Citigroup CEO Charles Prince resigned, and reignited worries that the problems facing the subprime mortgage industry could spread, affecting the broader economy.

"Weekend news that another top banking head handed in his resignation due to subprime woes ... is roiling the markets," said Edward Meir, an analyst at MF Global U.K., in a research note.

Energy investors worry that a slowdown in the economy would curb demand for oil and petroleum products.

Moderating those concerns was an Institute for Supply Management report Monday that the economy's services sector grew at a faster-than-expected rate in October.

Light, sweet crude for December delivery fell $1.45 to $94.48 a barrel on the New York Mercantile Exchange Monday.

Other energy futures also fell. The contract for December gasoline fell 3.61 cents to $2.4034 a gallon on the Nymex, while December heating oil fell 2.45 cents to $2.5492 a gallon.

December natural gas fell 26.5 cents to $8.153 per 1,000 cubic feet. In London, December Brent crude lost $1.20 to $90.88 a barrel on the ICE Futures exchange.

An increase in supplies also pressured prices. Iraqi crude exports rose by nearly 200,000 barrels a day in October to 1.84 million barrels a day, according to PVM Oil Associates in Vienna. In addition, Russian oil output rose 0.6% last month compared to the previous month, marking a new post-Soviet high of 9.93 billion barrels a day, PVM said.

A separate survey of analysts by Dow Jones Newswires suggests OPEC raised crude oil production in October 1.24%, or 382,000 barrels from the previous month to 31.23 million barrels.

An easing in tensions abroad gave energy investors more reason to sell. Kurdish rebels released eight Turkish soldiers Sunday, moderating concerns about whether Turkey will launch attacks on guerrilla bases in northern Iraq. Escalating tensions in the Middle East could disrupt oil supplies out of the region.

Despite Monday's swoon, analysts think some traders and investors will try to push oil prices to the psychologically important $100 level this week. Crude prices have topped the inflation-adjusted highs set in early 1980.

"I wouldn't see this sell-off today as the start of a correction," Kurzendoerfer said.






Got it for $2.68 in Jersey today
 

Ballbuster1

In The Danger Zone...
Wackbag Staff
Aug 26, 2002
103,485
16,807
919
Your house, behind the couch
#3
It's gonna get higher. I'm still convinced that they won't stop
until they can get it to about 5 bucks a gallon.
 

BIV

I'm Biv Dick Black, the Over Poster.
Apr 22, 2002
79,010
27,591
898
Seattle
#4
[Homer] This Sucks. [/Homer]
 

THE FEZ MAN

as a matter of fact i dont have 5$
Aug 23, 2002
42,638
9,655
848
#6
i just got 181 gallons of fuel oil. @ 3.09 a gallon. so much for my planishing hammer, hell so much for buying a steak tomorrow
 

mascan42

Registered User
Aug 26, 2002
18,946
5,750
848
Ronkonkoma, Long Island
#8
Who'd have thought 5 years ago that my monthly gas card bill would be almost as much as my car payment?
 

UCFGavin

Registered User
Feb 25, 2006
2,061
0
0
#9
you can thank the constant declining value of the dollar and the government not doing anything to fix it.
 
Feb 20, 2006
8,646
549
521
**** Island
#11
Our gas prices will be dropping soon because we'll be in a Recession. Lower demand you see. Unfortunately rising inflation will make sure it stays just as expensive in relative terms.
 

abudabit

New Wackbag
Oct 10, 2004
14,802
0
0
#13
:gh: Whoot! :gh:


I wonder how high it has to get for traffic to be noticibly reduced.
 

TheDrip

I'm bi-winning.
Jan 9, 2006
5,051
3
228
#14
Escalating tensions in the Middle East could disrupt oil supplies out of the region.
This is the most overused phrase when it comes to justification for raising prices. Tensions in the Middle East have ALWAYS been high, and they ALWAYS keep the supply flowing.

I honestly can't think of the last time oil shipments from any country in the Middle East stopped. Even when oil fields were torched, the oil still kept coming.

you can thank the constant declining value of the dollar and the government not doing anything to fix it.
I peeked again today and we're closing in on .685 to the Euro. Fucking despicable. And yes, the dollar is now worth .92 in Canada.
 

LilJimmyRbinson

Best muppet ever
Nov 19, 2004
11,417
7,547
586
RI
#15
you can thank the constant declining value of the dollar and the government not doing anything to fix it.
Because the people in charge aren't hurt by the decline since they have more dollars then they'll ever need anyway.
 

Chino Kapone

Yo, whats wrong wit da beer we got?
Jun 10, 2005
16,959
2,196
608
#16
YAY! One more thing that is going to kill my business...
 

MJMANDALAY

Registered User
Jan 26, 2005
13,145
1
0
#17
I'm dropping $600 a month now in gas and tolls. It blows
 

abudabit

New Wackbag
Oct 10, 2004
14,802
0
0
#21
$97 / barrel, almost at that sweet spot. The global warming nuts should start bombing oil pipelines.
 
Dec 25, 2005
10,005
172
513
NJ
#22
fucking $3.25 for diesel! what the fuck??

Paid $2.79 for regular today. Fords, NJ.
 

Sinn Fein

Infidel and White Interloper
Wackbag Staff
Aug 29, 2002
31,551
2,208
898
Florida's Nature Coast
#25
I paid $2.83 over in NJ on Saturday at the Wawa on Rt. 37. It was $3.07 at the Shell 3/4 mile down the street from my house when we got home. It's still at that price.

I'm glad I have a company vehicle, so we're only really paying for gas for one vehicle since my personal vehicle hardly gets driven.