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Automotive News & Views Are gas prices fueling your pain? 
10042 messages, Last post on Jul 12, 2008 at 3:07 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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I love waking up in the morning, grabbing a cup of instant Jo and getting my daily fix of doom and gloom. "Shocked! How the oil crisis has hit the world" http://www.independent.co.uk/environment/green-living/shocked-how-the-oil-crisis- -has-hit-the-world-837477.html This was an interesting summary that shows how the current fuel prices are causing headaches around the world and that people will be adjusting. The first reaction is usually anger, however. "The Coming Energy Wars" http://www.newsweek.com/id/139395 "Germans are actually beginning to slow down on the autobahn to save fuel..." Noooooooooooooooooooooooooo! Is nothing sacred. "Edmunds.com Forecasts May Auto Sales" http://www.earthtimes.org/articles/show/edmundscom-forecasts-may-auto-sales,4133- 09.shtml But people are adjusting. Subcompacts up 28% and large SUVs down 22%. http://www.autoobserver.com/2008/05/seismic-shift-to-smaller-segments-rocks-us-m- arket-edmunds-analysis-shows.html The new issue of Consumer Reports listed several gas saving cars. What a disappointment. Most are not much better than a mid-sized 4 cylinder car. The wife and I have been thinking about test driving one of those little 100 mpg scooters. It might be fun to have a few around. We figure that 4 scooters will fit in the garage if we move/get rid of the Highlander. Desperate times require desperate measures. 
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One of the important drivers of the cost of gas is the federal reserve interest rate. When they lowered the rate it weakened the dollar and pushed many investors out of the bond market who were happy to collect 5-1/2% interest. At 2% they went looking for someplace else to invest their money: Oil Futures became the better investment which is why there is 10 times as much oil futures being traded as there is oil, and one of the reasons the price has skyrocketed.
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so the lowering of the interest rate and a bunch of investors helped to cause the spike in ghastly prices. Wow, I might not have guessed that the lowering of the interest rate affected gas prices but that investor sell-off and re-attribution. Now that is obnoxiously annoying. Nice to see the smart investors getting rich off of everyone else's misery, isn't it? 
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Replying to: avalon02wh (Jun 01, 2008 6:40 am) Shortages of gas or diesel does not mean their is a shortage of oil. The whole refinery business in the US is cloudy for me. Some say we have plenty of capacity and reserves. Then Katrina knocks out a couple gas refineries and they switch a couple others over to producing gas. I personally think our refinery capacity is running too close to the ragged edge. From a business standpoint I would not want a refinery sitting idle. So without a good reserve of gas and diesel we get caught now and then. I have never in 49 years of driving been anywhere that I could not get gas or diesel. I was in Alaska during the 1970s mess, and we had plenty from the refinery in the state. At that time they used refined product as ballast in the ships that came up to get the crude oil from the Cook Inlet wells. No shortages or long lines in Anchorage. In fact the only times I remember waiting in line is recently at Costco to get the cheapest gas in town. Then it was only two vehicles in front of me. Usually if there is no open pump I don't stop for gas. I HATE lines anywhere. I refuse to wait in a restaurant for more than a couple minutes. Just me. |
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Replying to: iluvmysephia1 (Jun 01, 2008 1:50 pm) They have done that since the beginning of time. The worthless dollar brought on by the interest drop is also responsible for the run up in Gold and precious metals. Oil is just another commodity like Orange Juice concentrate. You try to buy low and sell high. Not everyone makes money. Lots of people lose money. If and when this oil price collapses there will be some people crying the blues in the market. We will be happy to see $3 gas again. |
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Replying to: gagrice (Jun 01, 2008 5:25 pm) In the meantime, we'll still have $4.30 gas (that's what I paid when I filled up this morning) which of COURSE has no effect on our own personal economies, right? 
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...these high fuel prices aren't hurting me too bad is that I live a pretty simple life as it is. I don't have a cell phone. I have dial-up internet access, (Mr. Slowski the turtle would be ecstatic!). I have old CRT televisions, no digital camera, and no video games. I grow my own garden, drink cheap beer, have no kids, my girlfriend is relatively low-maintenance, and I take no exotic vacations. My monthly mortgage payment is <$1K. If I wanted to trim fat - I guess I could get rid of my cable TV and my cats. If I was really nuts, I'd get rid of both Cadillacs and just drive my hoopty Park Ave. I almost feel like it because I'm at the age where I have nothing to prove. A flashy new car is more important with the young guys who are still trying to impress the ladies.
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Replying to: bpizzuti (Jun 02, 2008 4:50 am) It sure looks like it to me. The middle class usually takes the beating. I am sure the price of gas will keep many at the bottom of the ladder from driving. The fellow that works for me is taking the bus and trolley back & forth to Mexico each day. Takes him 2 hours each direction to get the 45 miles to where he leaves his car parked. Saves him about $10 in gas. You can ride the bus and trolley all day for $5. |
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Replying to: bpizzuti (Jun 02, 2008 4:50 am) Those prices will hold as long as you're willing to pay it. When there are more people who want something then there is product, those paying the most get it. On the bright-side you don't need to be wealthy to make $ to pay your entire gas bill. For the last 5 years, and YTD many energy funds are up 20% each and every year. If you didn't tie up all your funds in an overpriced house, or buy expensive cars you could have taken $20,000 and put it in a energy mutual fund. You don't need to be a future's trader to make money.
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This is an article from CNN which speaks about the increase number of motorists running out of gas. Depending on where and when that can cause quite a backup and a lot of pain for the rest of us. In New York some years ago I believe there was a hefty fine for running out of gas on a bridge or in a tunnel. As distasteful as it may be if out of gas motorists becomes a large problem it may be time to issue fines on a highway as well.
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