As we hear from the MSM reports on the average price of gas at the pump being up 25 cents in one month and 75 cents higher than a year ago, many consumers are not believing that.
For example, I traveled to Upstate NY the Thursday before the Super Bowl. I bought gas in my town at $3.03 per gallon.
Today, that same station is at $3.43 per gallon. To further illustrate how rapidly prices have risen, Weds of this week most stations here were in the mid $3.20's....By mid day Thursday most of those stores were charging over $3.40. A 14 to 17 cent rise in ONE DAY!!!!
Now, I have read reports on CNBC.com......One quotes T.Boone Pickens he believes crude oil will reach $120 per barrel.
Another person with knowledge......News Headlines James McCaughan CEO of principal Global Investors says inventories of gasoline and crude are at historic highs and the market itself is "quite speculative".
This sort of mirrors what I have believed all along.
Previously I mentioned that due to our sluggish economy demand is down from even seasonal norms. Combine that with stocks of gasoline being high, the market simply cannot continue to support these high fuel prices. Something has to give.
If anyone remembers, after the price of crude went to almost $150 per barrel with the pump price of gas over $4 per gallon, the marketplace ( us) could no longer support that level of price. What happened is the inevitable. The price collapsed. Oil fell down to $30 per barrel.
I saw a story on CNBC.com that the Saudi Arabian oil minister stated he was wary of price spikes and would do what ever was needed ,including violating his OPEC quota to keep prices from rising too much or too rapidly. This to avoid the oil price collapse of 2009.
I think gas will approach $3.75 per gallon average before the price falls. Summer? Who knows. If people do not travel as much or stay closer to home our economy will take it on the chin ......again.
For example, I traveled to Upstate NY the Thursday before the Super Bowl. I bought gas in my town at $3.03 per gallon.
Today, that same station is at $3.43 per gallon. To further illustrate how rapidly prices have risen, Weds of this week most stations here were in the mid $3.20's....By mid day Thursday most of those stores were charging over $3.40. A 14 to 17 cent rise in ONE DAY!!!!
Now, I have read reports on CNBC.com......One quotes T.Boone Pickens he believes crude oil will reach $120 per barrel.
Another person with knowledge......News Headlines James McCaughan CEO of principal Global Investors says inventories of gasoline and crude are at historic highs and the market itself is "quite speculative".
This sort of mirrors what I have believed all along.
Previously I mentioned that due to our sluggish economy demand is down from even seasonal norms. Combine that with stocks of gasoline being high, the market simply cannot continue to support these high fuel prices. Something has to give.
If anyone remembers, after the price of crude went to almost $150 per barrel with the pump price of gas over $4 per gallon, the marketplace ( us) could no longer support that level of price. What happened is the inevitable. The price collapsed. Oil fell down to $30 per barrel.
I saw a story on CNBC.com that the Saudi Arabian oil minister stated he was wary of price spikes and would do what ever was needed ,including violating his OPEC quota to keep prices from rising too much or too rapidly. This to avoid the oil price collapse of 2009.
I think gas will approach $3.75 per gallon average before the price falls. Summer? Who knows. If people do not travel as much or stay closer to home our economy will take it on the chin ......again.
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