There go the gas prices.....up....Up....Up!

[VtSteve]

Originally Posted by NoRegrets

Good and valid points VTSteve. Do you think there is a 20% swing caused by the market where the base price is set by supply and demand?

The barrel price just increased by 10% but the supply and demand level has not changed.

I think speculation, both investment speculation and economic speculation, has played a large part in this year's run. The world's economic outlook has gotten much better (although fragile), since Q3-Q4 2009. Opec has made some behind the scenes moves to increase supply a little bit, which will probably help moderate the swings.

I watch oil go up and down. People completely missed the speculative trading that drove oil to unbelievably low prices after record highs. But in large part, that drove the dive. The recession was a huge reason demand slowed so much, and continues to be moderate to low. Common stocks also followed this pattern. When any investment or commodity is viewed as too low, speculators move in to correct the market forces. They usually overshoot to the highs or lows, but they eventually stabilize. Refineries closed left and right last year as they continually lost money. My "guess" is that oil will hit a high this year of possibly $100, but only briefly. While demand is increasing from last year, it's still not near the 2007 levels.

I also think that conservation, more fuel efficient vehicles, and fear of high prices will be the dominant market force controlling demand. Opec in particular understands the risk/reward relationship between too high and too low, possibly better than anyone does. They understand full well that too high hurts global activity, which lowers demand, and causes huge fluctuations in their steady flow of capital. I think oil is already at their high comfort price, and they will further increase supply if warranted. Speculators just got burned badly, and they know full well that pigs get slaughtered

I'd be surprised if gas went much over $3 a gal this summer in our region, and very surprised if it stayed there for any length of time.

[CrawfordCentury]

Time for an outta the box solution.

NH is the 2nd most forested state in the US. There's gotta be some way to take full advantage.

Maybe one of these. I like the idea that if I'm close to empty, I can just pull over to the roadside and toss in a couple sticks of maple and be on my way. Gotta figure the emissions and the occasional chimney fire would discourage tailgaters.

Originally built for a French count, this 1884 De Dion-Bouton et Trepardoux — aka “La Marquise” — will go on the auction block this August in Pebble Beach, Calif. Surprisingly, the 123-year-old steam-powered car still runs … on coal and wood. It was raced a year before Daimler and Benz built their first gasoline-powered cars and 12 years before Henry Ford’s auto effort.

The auction company estimates La Marquise’s value at $1.5 to $2 million, but with the recent trend of over-inflated prices at exotic-car auctions, we could see the old count’s coach going for much more than that.

Gotta figure that if gas goes high enough, the ole count's jalopy could be paid for sometime around 2014.

[VtSteve]

Another, easier way to change both demand and price is this. My two vehicles get an average combined mileage of around 30 mpg. On our daily driver, mine gets 26 to 28, hers is now averaging 38 or so.

[patman]

Originally Posted by VtSteve

I'd be surprised if gas went much over $3 a gal this summer in our region, and very surprised if it stayed there for any length of time.

Actually, I'd be surprised if gas stayed UNDER $3/gal, and I'm betting it'll stay well over that ($3.25+) for a looong time.

Good news: it's a sign that the economy is picking up. Bad news: the folks that corrupt the pricing for no reason other than to line their own pockets have decided that means it's safe to milk the customers at the pumps again.