Oil Prices at $66 per barrel, your opinions?

[RD]

Oil hits $66 a barrel, not hammering economy
By Sue Kirchhoff and Adam Shell, USA TODAY
Oil prices touched $66 a barrel Thursday as gasoline supply fears continued.
U.S. light sweet crude was up $1 at $65.90 at midday after hitting a record-high of $66. London Brent was up $1.55 at $65.54 after touching $65.66.

Adding to worries Thursday, Iran's nuclear work put it at odds with the United Nation's atomic watchdog and more U.S. refinery snags threatened gasoline supplies to the world's biggest consumer.

Earlier the International Energy Agency said non-OPEC output was falling short of expectations, compounding supply concerns.

When will it start to slam the economy?

On Wednesday, oil price turmoil spilled into the stock market. The Dow Jones industrial average, up more than 100 points earlier in the day, finished down 21 points at 10,594 amid growing concern oil could reach $70 a barrel.

The market trimmed its gains Thursday as oil surged but was still modestly higher.

"At some point, high oil prices have to matter," says David Briggs, head of global equity trading at Federated Investors. "When Joe Six Pack has to start paying $50 to fill up his tank, you have to think they will stop buying Frappuccinos and bottled water."

Even though oil prices are up more than 40% from a year ago, a number of economists say they are not yet at a level that will derail U.S. growth. The economy expanded at a healthy 3.4% annual rate April through June. Ben Bernanke, chairman of the White House Council of Economic Advisers, Tuesday said oil prices hadn't slowed the economy.

There are a number of reasons oil hasn't had a bigger impact, ranging from the fact it is a less important component of the economy than it was a decade ago to businesses' reluctance to pass higher costs on to consumers to maintain market share. Contained inflation means the Federal Reserve has been able to raise rates at a gradual, less disruptive, pace.

"Saying that higher oil prices have not increased the risk of recession or serious economic slowdown is clearly not the same thing as saying that they have not had an impact," says Anthony Chan, senior economist at JPMorgan Asset Management.

Chan points out that economic growth will be weaker this year than in 2004 and is likely to be slower in 2006, partly because of rising oil and interest rates.

Studies from organizations such as the International Energy Agency suggest a sustained $10-a-barrel increase in oil prices reduces world economic growth by half a percentage point.

Mark Zandi, chief economist of Economy.com, lists several reasons U.S. growth is above average, even with the oil pressure. The price surge is due to strong global demand, rather than supply disruptions, as in the past. Inflation expectations are low, and consumers have tapped home equity to keep spending.

While some economic models show $75-a-barrel oil could have a big impact, Zandi says the price would probably have to go higher to really hurt. But if housing and other sources of growth fade, the oil pinch will get more acute.

High as they are, oil prices have not reached the levels of the late 1970s and early 1980s, adjusted for inflation.

"We're likely to see prices continue to trend upward," says Jason Schenker, economist at Wachovia. "The biggest potential to push prices down is going to be an increase in supply, but right now supplies look pretty fixed."

Contributing: Reuters

[Charger_Fan]

Oil Prices at $66 per barrel, your opinions?

My opinion is that it's gonna get much worse before it get's better.
I noticed this morning that my little "cheap" gas place just upped the prices $.08 from yesterday's price.

[BB1]

  Time to get a smart car...   

http://www.zapworld.com/cars/smartCar.asp

[Brock Samson]

  Well, it's a concern of course, if your on a budget.
  It would keep me from driving my Skunk as a daily (which I've concidered) cause in it i use permium (or race gas) and that costs... Big Time.  These days i'm going through two tanks of gas a week in my 300 M and it gets four times the mpg as the R/T.
And, IF I was gonna sell both my vehicles and get something else, as I'm concidering... gas milage would be a factor.
So a SRT-8 is out...
So for now the Charger is a great sunday Car, and the M is a great daily...
So i'm holding...

[my73charger]

Man does this suck rocks!  it just jumped 13 cents to $2.50/gal in Grand Rapids, MN   

[gadabra]

At 91 pence/litre here in the UK this equates to approximately $5.90/gallon.
So at 10 mpg the Charger is a tad extravagant  
Still not going to sell it though...

[SirNik73]

maybe its not time to sell the Benz Diesel and it's time to make it run on french frier oil. "i'll take a bigmac and 5 gallons of oil" you think it will work? ... maybe

[4402tuff4u]

In my opinion, it's absurd how it just keep's climbing. Would be nice for "someone" to do something about it. But then again, I'm not sure anyone can do anything about it. Maybe flood the market with oil reserves  to lower the prices. 

[Nacho-RT74]

I think I'll drill under my building searching for oil... since I'm in Venezuela I think that I can find some...

WHO CARES... I don need to drill under my building.... I FILL MY TANK WITH US$2,5

MUAAHAHAHAHAHAHAHAAHAHAHAHAHAHAHAHAHAHA

j/k

[my73charger]

I think the only thing that would change the market at this point would be if the demand dropped off significantly.  That is not likely to happen as of yet.  I know its not like I am doing any joy riding on $2.50+ per gallon.  I wouldn't doubt if the price continues to go up until we plain cannot afford to drive...just my pessimistic 2 cents....

[RD]

maybe its not time to sell the Benz Diesel and it's time to make it run on french frier oil. "i'll take a bigmac and 5 gallons of oil" you think it will work? ... maybe

only costs $3,000 for the conversion kit, unless you can figure out how to do it yourself.

[RD]

I think I'll drill under my building searching for oil... since I'm in Venezuela I think that I can find some...

WHO CARES... I don need to drill under my building.... I FILL MY TANK WITH US$2,5

MUAAHAHAHAHAHAHAHAAHAHAHAHAHAHAHAHAHAHA

j/k

hey, mail us some 55 gal drums of gas, we will pay you top dollar for it!

[PocketThunder]

I think that my '89 Ram 3/4 ton "Whitey" isnt going to last to much longer as my daily driver.   14 mpg @ 200 miles per weeks is costing me almost $40 a week to comute to work.   Time to find a TDI Golf.

[my73charger]

Sad but true Pocket....

[ChgrSteve67]

It sucks to have to keep paying more and more.
In Sacramento California I payed $2.67 for Regular Unleaded today.
I really feel sorry for our boys up North.

[I removed the rest of my statements, I forgot the rules]

Sorry

[RD]

ummm.... wow     that was keeping it real.   I would love to comment, but i believe the same rules apply here as they did at the last board, i.e. no political or religious rhetoric allowed, so i will not state that I agree with you. 

[Charger_Fan]

I still want to convert my daily driver over to run on methane. It might not be the most pleasant experience to follow me down the highway, but I could sure go far!

[70charginglizard]

Opinion......IT SUCKS!

[ChgrSteve67]

I still want to convert my daily driver over to run on methane.

Where do you mount the filler hose?

If it where I think I'll stick to gasoline.

[Crazy440]

Last year the U. S. exported 268 million barrels of oil. Shockingly, according to Dept. of Energy figures, that's about equal to the amount of oil we imported from Iraq in 2001, the year before our latest war with that country began. It's also about equal to the most optimistic guesses about production volume from ANWR, if drilling is allowed there.

In other words, if we simply held onto our own oil, the United States would have no oil interest in Iraq at all.

[253862656971]

I get a kick out of the politicians who are "appalled" by the gas prices yet you never ever hear them mention removing the gas tax.  I think if there were no federal or state gas taxes then gas would be less than $1.50 a gallon.  The gov't really needs to do what Alaska did with it's oil income.  I guess they only allow a certain percentage of oil income to be spent.  The rest is invested or saved.  Alaska is supposedly the richest state in the entire US.  Maybe an Alaska resident can chime in hear and correct or confirm what I said.

[TruckDriver]

Personally, I believe our goverment is all for this. I mean, you dont see them doing anything about it. and I am sure they see this as a great way to get people to stop driving old gas hogs as well as a good way to promote hybred cars.

[Silver R/T]

didnt Bush sign some kind of deal to 'lower costs of oil' ?  most likely was some kind of bs again...

[chrisII]

ive ben driving my 94 dakota as a "commuter car" about a 45 mile round trip to work daily. it gets "good?" mileage at around 19 to 20..but when a former salesmans car, a 98 breeze came avalible at a good price through work i snatched it quick i dont really feel the pain of the gas price yet its more of sticker shock. but i realise it isnt getting better. i dont expect the breeze to get much over 28mpg but winter is coming soon and for whatever reason my dakotas mileage drops like a rock in the cold, and so does over time at my job ..the real problem in this is i will have to take inshurance off of my charger...      

[BigBlackDodge]

You know, the gas stations used to get robbed around here alot!

Now they're robbin' us!

BBD

[chargerhunter]

$2.40 gallon in Texas. 55 miles to work one way. Gonna have to get another bike!!!

[70charginglizard]

You know, the gas stations used to get robbed around here alot!

Now they're robbin' us!

BBD

It isn't the gas station thats robbing you.

[ChargerRob]

Filled up yesterday at $2.69 a gallon. 

[andy74]

2.71 a gallon here this am, i have been driving the charger every day all summer,averaging 13 mpg,25 mile each way to work,getting a bit pricey.may have to start driving a dealer car again,probably a neon or 4 banger stratus,and parking the charger during the week,only taking her out on the weekends-i would still sell my wife before the charger !!

[NHCharger]

While watching ABC news this morning during breakfast the reporter who was talking about the jump in prices also mentioned that the oil companies are "swimming" in profits right now. And with the new energy bill signed their profits will be even higher. The oil companies will keep pushing up prices until they see a drop in demand, then they will drop the prices .20 cents and everyone will breath a sigh of relief. The oil companies have us by the short and curlies and they know it.

[ChargerBill]

$2.92 for premium in some places here....it's getting pretty bad. I filled my truck up Wednesday - $64!!!

[RD]

$2.92 for premium in some places here....it's getting pretty bad. I filled my truck up Wednesday - $64!!!

yikes, $2.38 yesterday, now $2.50.  filled up yesterday in the dakota, 22 gallon tank, $50.00.

[BigBadCharger]

Try 2.79 for the CHEAP STUFF!  And 3.01 for 92, but im still getting a Charger

[TheGhost]

I'm telling you, it's all the Man's fault.  He's always trying to keep us little people down.

[CFMopar]

In my opinion, it's absurd how it just keep's climbing. Would be nice for "someone" to do something about it. But then again, I'm not sure anyone can do anything about it. Maybe flood the market with oil reserves  to lower the prices.

I dont think their is much that can be done. Its a limited resource and were using it up. The demand keeps growing and the supply is dwindling.

A good read for anyone who wants to spend some time is http://www.lifeaftertheoilcrash.net/ (its long i just skimed it) Talk bout everything. Oil production, oil compainies, our supply, alternate sources of energy.... It basicly goes on to explain that we fuc*ed ourselves over allready.

We've hit in southern ontario 97.9 cents a liter (you guys can do the math) and were suposed to be hitting the dollar + a liter mark soon.

[70charginglizard]

Well I told myself when it hit 3.00/gallon that I was going to try this and see if it work.
http://pesn.com/2005/03/17/6900069_Acetone/

I heard on the news this morning that it's hit 3.00/gallon today here in some places thanks to another small storm in the gulf (so they say) Yeah, right.
So here I go. Acetone in the tank!

Long as it doesn't hurt it (which they claim) I'm now at the point that I'll risk or try anything to get better fuel milage now.


I've already put in a K and N air filter, one of those goofy turbo vortex things, a magnet that claims to save you gas that attaches to your fuel line. (I'm sure the only thing really helping at all is the K and N filter but what the heck)

Any other ideas?

[CFMopar]

A guy i know tried that aceton and said a car that he never got no better than 31 mpg got 35 mpg...

[69 charger man]

it sucks.. my 01 ram eats gas like crazy... 360 ex. cab 8ft bed 4x4.. to fill up her 35gal tank it cost like $70 (2.30 gal in nj)and only gets me about 350 miles... imm going to go broke
-ray

[Charger_Fan]

I found this cool Q&A list regarding Acetone...
http://peswiki.com/index.php/Directory:Acetone_Additive:FAQ#Q._What_does_acetone_do_to_engine_components.3F

Apparently you need to make sure the gas you're buying contains no Ethanol (probably Methanol too), otherwise Acetone won't work as well.


Check out "Where does Acetone come from?" at the bottom of the page.   

[CFMopar]

The more I read bout acetone the more I want to try it.

And I know to diabetics WOOO hehe

[myk]

I try not to entertain any thoughts or opinions on matters that are beyond my control-there's just no point to it...

[Lightning]

jumped from $2.47 a couple days ago to $2.66 today.....what's up with this??

[Beer]

Those who have been in the chat room know I work on a drill ship in the Gulf of Mexico. Our task is to explore for oil/gas based on geologist and seismic data. If one looks at the the "Big Picture" it appears the oil is in the mideast. We are getting oil from the mideast and it is supplemented from other sources such as the North Sea, Africa and the Gulf of Mexico, as well as Alaska, Brazil and other places.

Alot of what you pay for gas is in fact State and Federal taxes. One should be able to determine that, frequently there is a sticker on the pump telling you what the taxes are per gallon.

My take on the petroleum industry is that our government wants to use Mideast oil rather than our own reserves.

This makes sense, if they (mid east) have so much (and it is a limited commodity) and are willing to sell it, why use local reserves? Eventually the Mideast should run out right? Then what will happen??? The North Sea, the Gulf of Mexico, Africa, Brazil, and all the other non mideast sites will be money makers. Money makers that are controlled by Europe and the US vice the Mid east...

Local finds (Gulf of Mexico, btw you can search these terms on google to see what I am talking about) include Crazy Horse, Thunder Horse, and Tahitii (Tahitii My drillship discovered!).  

The fact is from a strategic sense we have oil, but it makes sense to use the other guys oil first...

[69bananabeast]

I've also heard that Oil companies are recording record profits, so what does that mean to you?  In the past week and a half  here in Texas, Gas gone from 2.18 to 2.42  for regular  .  My dad's been over in Baghdad herding all the troops for training at the airport and while he was there he found out that the Saudi's can pull a barrel of oil out of the ground for a $1  and on the market it's selling for $66 a barrel. What the hell is going?     In my opinion I think US might be stock piling "In Case $h it "  . It wouldnt be as bad if they would admit they are stock piling if thats what it is.  Im having a problem now trying to figure if gas prices are better right now or if Kerry would have been elected ( I know Politic BS) but he did want a .50 cent gas tax off the bat if elected.

[BigBlackDodge]

When oil runs out in the middle east oil will be selling for 500 bucks a barrel................where else you going to get it from? Zero competition is bad news for consumers.

Oil companys are making record profits at America's (and other nations!) expense. Are they building new facilities to make gas?.............I bet they aren't............and why should they. They can use the 'we're maxed out production wise' excuse to keep the price high and rake in the cash by the millions, trillions, billions........or ga-zillions.

I am secretely building an engine that runs on air ...................but a certain oil company has offered me millions to sell them the patent.........hmmmmm.

BBD