100 Hot Cars

Just Car Blog

Will Oil Hit $200 Per Barrel? Some Say Yes 22
Mar
Posted by Kurt Ernst in Automotive, Gas Prices, Kurt, News, Oil Prices on 03 22nd, 2012

Oil is currently trading at $123.61 per barrel for Brent crude, which is part of the reason why gas prices have been creeping skywards over the past few months. While the factors determining the cost of a barrel of oil are remarkably complex, this much is easy to understand: pricing is still very much a matter of supply and demand. Reduce supply, and prices go up. Increase demand, and the same thing happens.

Although current global output is up, so is global demand. Put another way, gas is expensive in Ohio because more people in Beijing are driving cars. That’s not likely to change any time soon, so unless worldwide oil production skyrockets, the price of gas isn’t likely to get significantly lower. Even tapping into the strategic petroleum reserves held by the U.S. (a tactic tried last June) will only have a minor impact on pricing; last year, it lowered prices for a few days, but they spiked higher less than a month later.

If crude oil pricing does jump to the $200 per barrel mark discussed by CNBC, expect to see a significant price increase at the pumps. While gas prices may not rise in the same linear manner as barrels of oil (since many factors go into pricing a gallon of gas), it’s likely to expect that $200 per barrel crude would result in gas prices above the $6.00 per gallon mark.

Since the price of oil impacts everything from the cost of food and consumer goods to airline travel, we could be in for a very unpleasant blow to an economy that has yet to regain its footing.

Image credit: Flcelloguy at the English language Wikipedia



Will Oil Hit $200 Per Barrel? Some Say Yes 22
Mar
Posted by Kurt Ernst in Automotive, Gas Prices, Kurt, News on 03 22nd, 2012

Oil is currently trading at $123.61 per barrel for Brent crude, which is part of the reason why gas prices have been creeping skywards over the past few months. While the factors determining the cost of a barrel of oil are remarkably complex, this much is easy to understand: pricing is still very much a matter of supply and demand. Reduce supply, and prices go up. Increase demand, and the same thing happens.

Although current global output is up, so is global demand. Put another way, gas is expensive in Ohio because more people in Beijing are driving cars. That’s not likely to change any time soon, so unless worldwide oil production skyrockets, the price of gas isn’t likely to get significantly lower. Even tapping into the strategic petroleum reserves held by the U.S. (a tactic tried last June) will only have a minor impact on pricing; last year, it lowered prices for a few days, but they spiked higher less than a month later.

If crude oil pricing does jump to the $200 per barrel mark discussed by CNBC, expect to see a significant price increase at the pumps. While gas prices may not rise in the same linear manner as barrels of oil (since many factors go into pricing a gallon of gas), it’s likely to expect that $200 per barrel crude would result in gas prices above the $6.00 per gallon mark.

Since the price of oil impacts everything from the cost of food and consumer goods to airline travel, we could be in for a very unpleasant blow to an economy that has yet to regain its footing.

Image credit: Flcelloguy at the English language Wikipedia



Reminder: Check The Fuel Price Before You Pump Your Gas 28
Apr
Posted by Kurt Ernst in Automotive, Exxon, Fuel Shortage, Gas Prices on 04 28th, 2011

Image: Christian Lylloff

Imagine this: you’re late for a family dinner, you’ve got your wife and kids packed into the car and you decide to top off the tank so you don’t run out of fuel a mile from grandma’s house. Swiping your credit card, you pump just five and a half gallons of fuel before you say, “good enough”. The pump spits out your receipt and you stagger back into your car door: those five and a half gallons of gas just cost you over $300, or $55 per gallon.

Is this the stuff of science fiction? Hardly: it actually happened to drivers in a town outside of Stuttgart, Germany, this weekend. A local Esso (their equivalent of Exxon) station was running low on premium fuel, so they raised the price to $55 per gallon to discourage motorists from tanking up. It proved less than effective, and at least two drivers refused to pay before the police were called to diffuse the situation. In the end, the motorists were forced to pay their bills, but Esso is expected to intervene on a corporate level. A spokesman for Auto Club Europa compared the situation to the black market, and called for a an investigation into unfair price escalation.

What caused the drama? A shortage of premium unleaded fuel, compounded by restrictions on fuel deliveries over the Easter weekend. Logistical problems created by the introduction of E10 fuel only made the situation worse, and some 20% of gas stations in the Stuttgart area were out of premium fuel on Monday afternoon. Think it can’t happen here? Don’t be too sure about that, so always check your fuel prices at the pump before you tank up.

Source: Carscoop







 Category



 Blogroll