Gas Prices Could Rise to $5 Per Gallon

[JCL]

MD: thanks for posting this. Libya may be only 2% of world production, but I think scares and price hikes may be also impacted by global peak production theories, as much as by the quality of their oil. It won't be a single tipping point, but at some point the world will figure out that the second half of the oil in the ground is harder to get out than the first half that has already been extracted. I never figured out how people thought oil would keep coming out at ever-increasing rates until that day when it is all gone.

[Krimson X]

Originally Posted by JCL

I read a good article today about how it isn't democracy that is catching on, but rather regime change. When the military decide to stop backing one dicatator, and get ready to put the next one in, that isn't democracy. And when the military can't agree on a course of action, and it degenerates into tribal warfare, it is civil war instead of democracy.

Regardless, fuel prices will keep rising for awhile.

So all of these contries decided on regime change within weeks of each other? I don't think the revolutionary protest in Tunisa, Egypt or Libya were started because the military stopped supproting the dictator. Tunisa's protest started when someone immolated himself in protest of corrupt dictator President Ben Ali, forcing Ben Ali's resignation. Egypt's protesters were inspired by the protest in Tunisa and by a Google executive. Libya is just following suit.

[JCL]

I am not suggesting that the regime changes are not driven by the demonstrations. I think they clearly are.

It is just that if the demonstrations get resolved by the military deciding to reverse their position and support change (as in Egypt) then the outcome of that change isn't necessarily democracy. In the short term it is a military dictatorship. It may turn into free elections. Or it may not.

And if the military doesn't act in a united fashion, (as in Libya) then the outcome of that change is likely civil war.

[J.Belknap]

Curious how the middle east stability affects pricing to a greater degree than the craziness that has been going on for some time now in Mexico, a country where we purchase a higher volume of oil?

It doesn't make sense, someone please enlighten me.

[AzX5]

Originally Posted by JCL

Hard to understand why the US is still cheaper, given that Canada is your largest supplier of oil. Time to raise those taxes.

Could it have something to do with Universal Healthcare, or lack thereof in our case?

[Quicksilver]

Whatever the reason the price of fuel is very likely to go "UP".
If the price goes up it seems only logical that people will spend
less money on other things and the beat goes on.....

[J.Belknap]

Wish I could retrofit a Mr. Fusion home energy reactor.

[JCL]

Originally Posted by AzX5

Could it have something to do with Universal Healthcare, or lack thereof in our case?

Nice try. Payroll and income taxes fund health care here.

Turning it around, if it was connected, I guess it would be evidenced by anyone on Medicare paying more at the pump in the US. Has that been the case?

[motordavid]

Originally Posted by J.Belknap

Curious how the middle east stability affects pricing to a greater degree than the craziness that has been going on for some time now in Mexico, a country where we purchase a higher volume of oil?

It doesn't make sense, someone please enlighten me.

J...
No Xpert...just off the top of my #2 buzz cut melon:

-Libya oil, and lots of other 'mid east/African' countries goes to Europa, and into the world wide 'pot'. Speculators love 'trouble' and 'tension'.
-Even though the drug crazies have been murdering anyone they feel like, the oil from MX keeps coming, for now.
-Force the speculators to take delivery: oil will be $60 to $70 bbl max in less than a week.
-the short interest on oil, is miniscule; the longs, (all speculative), are betting their plaid vests on $120, or higher. With no 'delivery/possession', zero down unlike most 'options', no problem. Equals forced higher, and higher prices.

All this blip does is reopen a festering wound, drag down econ recovery, and make some geopolitical regions more wealthy, based on an over priced commodity that happens to be handily available under their sands.

The world, and esp the US, is not running out to buy electric cars or Priuses tomorrow. And, Solar/alt techs keep laying off and whistling in the dark, due to utter lack of interest, private or public or, governmental.

Welcome to the continuing saga of chaos.
GL, mD

[J.Belknap]

Thanks for your .02 mD.... I don't know, part of me has the tin-foil hat on about a few opinions on the Mexico thing, but maybe I've just been working for the gov't for too long. In any case, your post reminded me that I need to brush up on the day trading stuff... in case I find some change in the back seat or something. Appreciate the post man.