What will gas prices be by 2009?

[sundownz Pro Seller]

Thanks Jacob, glad someone besides me on this forum believes the bubble will burst. India and China cannot afford large scale $130bbl oil forever.

Indeed. The current price is a bubble, that is for sure.

I don't think we'll see below 2 dollars a gallon for gasoline in the USA again any time soon (or ever) - but the current price is pretty out of touch with fundamentals. I wouldn't be surprised to see gas at $2.50 - $2.75 a gallon in 2009.

 

[BoomBoomBoy 10+ year member]

Thanks Jacob, glad someone besides me on this forum believes the bubble will burst. India and China cannot afford large scale $130bbl oil forever.

I guess with that one post you just wiped out supply/demand economics. You da man! //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

 

[duece212 5,000+ posts]

I guess with that one post you just wiped out supply/demand economics. You da man! //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

If people can't afford it the demand drops

still supply/demand, just put back in check according to the market.

 

[mokedaddy 5,000+ posts]

I guess with that one post you just wiped out supply/demand economics. You da man! //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

Not at all. Demand is going down now that it is reaching these highs. India and China both are using less now that prices are so high. Its actually supply/demand at its most fundamental. Especially since such item is overinflated to begin with. //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif

 

[Flipx99 5,000+ posts]

Indeed. The current price is a bubble, that is for sure.
I don't think we'll see below 2 dollars a gallon for gasoline in the USA again any time soon (or ever) - but the current price is pretty out of touch with fundamentals. I wouldn't be surprised to see gas at $2.50 - $2.75 a gallon in 2009.

We may see it again, but not when we use it. I would expect high 3s, just because they know we will pay it without complaining so much...and as a "breakeven" to discourage carpooling.

I guess with that one post you just wiped out supply/demand economics. You da man! //content.invisioncic.com/y282845/emoticons/laugh.gif.48439b2acf2cfca21620f01e7f77d1e4.gif

?

You are aware that demand varies indirectly with price, depending on elasticity. People are under the assumption that the demand for oil (and derivatives, such as gasoline) is near inelastic. Well, it's not. At $1,000/gal the demand for gasoline would be very limited.

Furthermore, even though China and India are booming, the government is buying the oil and selling it to the people under price restrictions. How long will the government subsidize fuel?

 

[BoomBoomBoy 10+ year member]

Not at all. Demand is going down now that it is reaching these highs. India and China both are using less now that prices are so high. Its actually supply/demand at its most fundamental. Especially since such item is overinflated to begin with. //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif

You'd be wrong. India and China's primary use for crude oil is industrial usage. They are not going to cut back on the booming industrial revolutions.

Here in the United States, we have the highest capita of automobiles in the world so we may experience a slight decrease in demand with higher prices.

http://www.nationmaster.com/graph/tra_mot_veh-transportation-motor-vehicles

 

[Flipx99 5,000+ posts]

China uses mostly coal.

 

[hoxie08 5,000+ posts]

Get used to the high prices. It's been a long time coming and it's not going to go away.
Think about buying one of these, they're only $8,500:

http://powersports.honda.com/scooters/model.asp?ModelName=Silver+Wing+ABS&ModelYear=2008&ModelId=FSC600A8

**** THAT. 8500 bucks for that POS?

yeah, **** that. a bike is 100 bucks.

 

[Flipx99 5,000+ posts]

I have seen Buells from HD sell around $2,500. I carpool so I don't need a motorcycle.

 

[denim 5,000+ posts]

At the approx rate of $0.30 a month increase.....

 

[DejaWiz 5,000+ posts]

Ethanol...starving Mexicans since 2006

Starving vehicles of power and better fuel economy since 1908.

 

[bad_trip 10+ year member]

just a quick thing to think about to those who say drilling in AK and CO and SD etc, will solve the crisis. If the US was the one supplying the oil, instead of having to pay the prices we do to import it, don't you think we would export what we drill? They would definitely make more money that way. And if it did stay in the States, with everyone knowing that most people will gladly pay $3 a gallon no matter what, and most people will pay even more, I doubt prices at the pump would drop all that much.

It's all about money fool. The government ain't for the people, it's for the people's money.

 

[mokedaddy 5,000+ posts]

You'd be wrong. India and China's primary use for crude oil is industrial usage. They are not going to cut back on the booming industrial revolutions.
Here in the United States, we have the highest capita of automobiles in the world so we may experience a slight decrease in demand with higher prices.

http://www.nationmaster.com/graph/tra_mot_veh-transportation-motor-vehicles

Then explain why their usage is in fact going down.

 

[BoomBoomBoy 10+ year member]

China uses mostly coal.

And are second behind us in consumption:

http://www.nationmaster.com/graph/ene_oil_con-energy-oil-consumption