Gas prices anyone?

[blackhawksniper]

Are you kidding me?

Gas prices going up = economy is going down. Gas was around $1.40 and now it's more than double and the economy is on the lowest it has been in years.

Either way, the cheapest gas station near my house is at $3.65. I live in New Mexico. Gas prices aren't that high here

Actually you are both wrong.

Gas prices are based on speculation of the price of oil. The price of oil is determined by the output (supply) and the amount consumed (demand). Currently, the demand has stayed the same, but the price is rising because the supply is shrinking. While it is not a major amount (Democratic uprisings in the Middle East are to "blame" for supply disruption), there is still a large enough amount of the supply being stopped, slowed down, and generally disrupted. This allows gas stations to start the increase in prices as suppliers throttle their output so they have a reserve built up.

Using gas prices as a economic measurement is not practical, nor a correct economic indicator.


There is your daily econ lesson class

 

[asphixiations]

Ya sucks the gas prices are going up, im gana have to get a fuel efficient car now instead of a giant truck

 

[Sexy Beast]

Actually you are both wrong.

Gas prices are based on speculation of the price of oil. The price of oil is determined by the output (supply) and the amount consumed (demand). Currently, the demand has stayed the same, but the price is rising because the supply is shrinking. While it is not a major amount (Democratic uprisings in the Middle East are to "blame" for supply disruption), there is still a large enough amount of the supply being stopped, slowed down, and generally disrupted. This allows gas stations to start the increase in prices as suppliers throttle their output so they have a reserve built up.

Using gas prices as a economic measurement is not practical, nor a correct economic indicator.


There is your daily econ lesson class

I can agree with this. There are simply to many variables effecting gas prices for it to be used as a proper economic indicator. Though an increase of gas prices tend to mean an increase in the price of other goods as a direct effect.

Fortunately it looks like investors are leaving oil commodities in droves due to the recent drop in the stock markets. So if we're lucky we can get back down to $100 a barrel or even lower by the end of the week if this trend continues.

 

[Parkour12]

Lets hope we will find a solution. If the president decides to drill in the US, or Alaska for our only option, then Gas will be 80. a gallon (or switch to electrical cars

 

[warlock51[NOR]]

Well I am asuming the gas prices here are on avrage 11 NOK and that would be 2 USD but on the offchanse i am wrong i also asume its anywhere from 12.50 to 13.10 so you can calculate that out yourself, Of course you have to keep in mind that we go by liters instead of galons so you can just multiply that by 3,8

 

[Painbow]

Also, take into account the fact that the USD is currently the national reserve currency, and is one of the accepted forms of payment for most oil companies.
Now, since America has been facing a possible cut to its credit outlook, most foreign investors and companies are loathe to have their bonds and stocks in the USD, for fear of it losing value (Aka losing them money.) Gas is supposed to hit a high of 6.00$ in Texas, I've heard... by July or so. Currently we're hovering around 4$.
Couple this with our already struggling economy, and you have the stage set for hyper inflation, wherein money gets injected into the economy in an effort to stimulate it.
Considering we're the only country that can control the value of its money (We print our own, when needed, controlling supply and demand, etc..) , we'll most likely just make more, devaluing it further. When offshore companies and countries start dumping parts of our already sky-high debt, well....
My girlfriend and I have already converted most of our savings into Euro, and I have two plane tickets to London already.
Juuuuuus' waitin.


@Sexy Beast
We're currently in the worst recession since world war II
I agree there are many variables to be looked at, and without going into too much detail
--
(Don't want to get the thread locked, feel free to edit out any unsavory bits)
--
Gas prices will continue to rise, we were "hoping" for a drop when they hit 3.00, and stayed there.
There are military effects on prices, sociopolitical implications have to be taken into account here, and unfortunately, as much as I love to discuss politics, it's not allowed here, so I leave it at that.
<3

 

[Hutcherson]

Old picture. Besides, if the cost of gas is going up, it means the economy is starting to get better. Thats all ill say (not trying to start anything up).

Indeed. I do enjoy the gas prices going up. When the prices of gas goes up, the stockmarket value for gas also goes up. Technically, it makes my family more money.

Cheers!

Connor

 

[seek.and.destroy]

Sitting right around 3.60, depends on where you go. Loving my 4 cylinder.

Easy for you to say i have to feed an 8 banger.

 

[Painbow]

Suffice it to say, we'd not have this issue had gas and automobile companies invested more in research on alternative fuel vehicles. xD
We could, viably, have perfected h20 cars, and kinetic energy driven vehicles... but nope.