[RBP]

Originally Posted by galahad05

Sorry, fundamentals don't support your reasoning.

The cost of pumping the world's most expensive barrels of oil is....wait for it.....

$50.00 per barrel. Naturally there are much cheaper barrels being pumped right now. Like Saudi Arabia's $5 / barrel...


The price of oil will crash back down to somewhere in the $70's, most likely.



EDIT: Hell, even the uber-expensive oil shale stuff only costs $70 / barrel to extract. When prices = high, then suppliers will jump in (as they are already doing with the shale and coal-to-oil converstions). With the high prices, demand will drop (as it already has in the U.S.). China will almost certainly drop their huge oil subsidies after the Olympics, thus bringing prices way up for their populace. This will further kill demand.
Excess supply + lower demand = ?

I never said fundamentals required oil to be this high or even at $112...I'm just pointing out how it might tumble in the short term.

It takes years to bring on more supply and there is simply not enough refining capacity out there for the tar oil.

[bimm3r_c]

man!!!..this price of gasoline is ridicolous!!! (sp)...i doubt that it will go down to its original price ($3.00 something!)..that is before the..Damn!.

trivia?!!

Who was the last president (early 90's) that we saw this kind of gasoline price hikes ,economic decline, recession...all because we went to war???

[Majikthese42]

Let's ask T. Boone Pickens where it's headed:

http://www.cnbc.com/id/15840232?video=747990771

Originally Posted by T Boone Pickens

"They're gonna to go up because the people that have the oil want it to go up and they're running out of oil. They're gonna have 85 million barrels a day, is all the world can produce, and the demand is 87 million, and it's that simple. It doesn't have anything to do with the value of the dollar. It's just a fact of supply and demand. That's it."

[EHbavarian]

last nite $5.40 .... about 80 bucks on my e90

[BMW335icDDS]

Gas prices hurt a lot, but I'm not that sad seeing them go higher because it does reduce traffic in LA, and at least there are less SUV's and trucks on the road.

[galahad05]

Originally Posted by Majikthese42

Let's ask T. Boone Pickens where it's headed:

http://www.cnbc.com/id/15840232?video=747990771

Demand will go down as the price raises. Always happens. In fact, it happened in the '70's OPEC-initiated oil embargoes.

Indeed, it's happening right now. Counteracted by rising Asian demand for the moment (subsidized oil to their populace). Once those governments drop their subsidies--which they'll have to because of the sheer cost of this--we're talking tanking demand.

[Tondtar]

In a couple of weeks? We are already there, bud.

Self-serve regular gasoline is advertised at one-tenth of one cent less than $5.00 per gallon, with mid-grade and premium well over that mark, at a filling station in Arcadia, Calif., Friday, June 6, 2008. Oil prices shot up more than $11 to a new record above $139 per barrel of crude after Morgan Stanley predicted prices would hit $150 by July 4.
(AP Photo/Mark J. Terrill)

Originally Posted by solefald

$4.79 last night. We gonna hit $5 in a couple of weeks

[ArmyBimmerDude]

Originally Posted by Speedschnecke

i paid 8,08$ in germany

You get payed in euros and you drive a diesel, which is far cheaper than in the U.S.

[ArmyBimmerDude]

Originally Posted by BMW335icDDS

Gas prices hurt a lot, but I'm not that sad seeing them go higher because it does reduce traffic in LA, and at least there are less SUV's and trucks on the road.

+10000000000

I can't wait to see pick up trunks off the road. Non driving rednecks. At least here in Georgia anyway.

[BMW2Hart]

Originally Posted by MrOffshore

So...what do you think the national average on gasoline will hit this summer per gallon:

Ride on my brother - thou has wheels, will travel no matter what price of oil.

[dugedug]

Originally Posted by bimm3r_c

man!!!..this price of gasoline is ridicolous!!! (sp)...i doubt that it will go down to its original price ($3.00 something!)..that is before the..Damn!.

trivia?!!

Who was the last president (early 90's) that we saw this kind of gasoline price hikes ,economic decline, recession...all because we went to war???

fail

[MrClean]

Slightly off-topic, and slightly sick but...

I was considering an M3 at the same time as my 335i. Part of rationalizing the purchase of the 335i, outside of the ~$20K+ price differential, was the cost to maintain and feed the two cars. I can't help getting a little smug when I hear about the price of oil continuing to go up. I know it's all relative, as the 335i isn't exactly a Prius, but it helps to sooth the yearning for the M to know I'm probably getting in the neighborhood of 30% better fuel economy.

J

[RBP]

Originally Posted by galahad05

Demand will go down as the price raises. Always happens. In fact, it happened in the '70's OPEC-initiated oil embargoes.

Indeed, it's happening right now. Counteracted by rising Asian demand for the moment (subsidized oil to their populace). Once those governments drop their subsidies--which they'll have to because of the sheer cost of this--we're talking tanking demand.

70s were way different. Supply was cut off from OPEC and there were shortages everywhere....people had to line up to get gas and it was rationed. And there was no talk about peak oil back then...just crazy OPECians.

Friday we got a super-spike without any huge supply constraints or disruptions.

I still think oil will hit $150 fairly soon...which is only another 8-9% move up. Then it will "crash" back down to around $100 or so where we will all sigh in relief that it is back down so much....and yet it'll still be at $100...but it'll seem cheap.

I remember the good 'ol days way back when oil was only $50 a barrel....ah yes...good ol 2005.

[galahad05]

We were at $100/barrel just awhile back. I recall reading that this was causing a definite slowdown in the economy.

If this holds true, then the "stable" $100/barrel prices will slow down our economy, driving down demand as we fall into a fairly long-term recession. This will help drag down the Chinese economy, not to mention hit the already-shaky European economies...leading to a (hopefully mild) global recession.

Supply prices increase = demand curve decreasing = supply prices dropping.

Now the big debate is just where the two curves will intersect, long term.
Obviously I'm a proponent of under-$100...but it's all guesswork right now.

[NaTuReB0Y]

Here are some numbers I got tonight for my E90..............

$4.62 x 16.18 gallons = $74.75

The most I ever paid for my E90..........

I remembered paying $48/tank a couple of years ago, and I thought it was outrageous...........

458.6 miles / 16.18 gallons = 28.3 mpg

Not bad.......since my wife is the only one who drives it..........

I would get about 23/24 mpg...........

[galahad05]

I basically always get 21 mpg average.

[Couch]

http://www.washingtonpost.com/wp-dyn...060403052.html

[ihyln]

Hopefully it gets so prohibitively expensive that the cops have to resort to bikes or 1-2active cars. Then we can really have some fun on the highway

[EHDEN]

I wouldnt mind paying extra for gas if it means less people on the road =)

[bolinp78]

Originally Posted by Kiemyster

i think 6 is a reasonable guess. gas companies know all the teens gonna be driving, going wherever they want. families are taking road trips, rv's are being rented. ohh yeah. them fuckers love that time of year. bastards.

So grossly ignorant and uninformed..

It's misinformation and blind hate such as this that makes me fear for America's future, not the rising gas prices.

[TK - 421]

FYI UK Prices hit $2.66 per litre (£1.33)!! I repeat, per litre!

[ihyln]

Originally Posted by Anygreg

FYI UK Prices hit $2.66 per litre (£1.33)!! I repeat, per litre!

I'd trade if I didn't have to drive my car everywhere unlike you.