Crude and Unleaded Gas futures are going thru the roof, fuel is going to get expensive and reach record prices this summer. CHevrons profits are up 30% from a year ago, what a conincidence!
Supply & demand sucks in the real world, eh? One easy solution: DRIVE LESS, in more fuel efficient vehicles. Alter the demand curve to make prices drop. Thge one fly in the opintment of that: China is the next huge market for autos...and Chinese demand for oil will just keep prices high as supply remains constant.
Let's see how bad some really needs to buy that new or used SUV with the 24" spinners & sound system now? HA! They will be all taking the bus now purchasing hybrid powered autos. Thank God I own an Integra.
I think the futures market says otherwise. Although it won't be going down anytime soon, it won't be going up that much, either. Besides, once the Chinese economy collapses, there will be plenty of oil (and steel) on the market.
China has some effect but not enough to cause this rally, prices now are at 3 year highs, it takes about a month for the futures prices to make it to the stations on the street, it just a worldwide increase in demand, the US is using more fuel now than ever in history, California will probably see $3.50 or higher.
Maybe the posseurs that drive hummers will get rid of them. I wonder if even half of them see any type of dirt particles on their tires.
For the people in the top 50% income bracket, gasoline would have to get into the $5.00/gallon range to alter their choice of vehicles and moderate their desire to get out and drive.
If this is all a great conspiracy orchestrated by the oil companies to fatten their wallets, what will happen when the high oil and gas prices start to affect the travel industry? Like the airlines that won't be flying, the hotels that will be empty, the vacation resorts that are vacant, etc? How long will the rich fat cats who own the travel industries stand idley by while their rich fat cat friends in the oil industry rake in all the profits? At some point, the oil industry greed will start to have a negative effect all across the board among the fortune 500 crowd, and at some point, the rest of that crowd will stand up and demand an end to the absurd gas prices. When people simply stop traveling due to the high gasoline costs, pretty soon the oil prices will have to start falling. You simply can't FORCE people to take a cross country driving vacation to Disneyland. And when people stop vacationing, the travel industry starts losing money big time.
don't give them ideas, they'll just put those spinners on their new toyota prius. not only that, they'll add a big ole wing. i can see it now...
