Will Gasoline Hit $5/Gallon This Summer?

Will Gasoline Hit $5/Gallon This Summer?

Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes

Gas is really expensive for this time of year and the dollar is getting cheaper. Will the average hit $5/gallon this summer? If so, what will it do to our economy?

Edit: Title should say GAS...not oil. Hopefully one of the mods can change it ;-)

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Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
14y

I'd bet it hits that right before that guy in the "Lambo thread" gets his wish :D

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  • Investor · Fort Worth, TX · Member since 2011 · 1k+ posts · 450 votes
    14y

    I haven't bought gas in couple of days, but have seen a handfull of stations selling for about $3.69/gal. E85 means 15 percent ethynol (denautured alchohol). Not good for your car if it is not designed for it. Where I live, there does not exist a single gas pump that does not claim to have up to 10 percent ethynol.

    Ethynol is cheaper than gas, but the cost savings vs the efficiency compared to gasoline (worse gas mileage from ethynol) supposedly makes the savings come out to a wash. So you pay less at the pump, but pump more often. Also, the higher percentage ethynol blends are hard on engines designed for typical gasoline consumption. I have heard it has to do with the alcholol eating away at seals.

    This is one of those topics I would expect Steve Babiak to have some type of knowledge about. Not sure why, just seams like he would.

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  • Garberville, CA · Member since 2011 · 184 posts · 6 votes
    14y

    It was close to $5 last time I filled up, here in northern California..My bet is that gas and food prices cross country will rise after elections. No matter who wins.

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  • Garberville, CA · Member since 2011 · 184 posts · 6 votes
    14y

    I personally believe we're past peak oil. Some say it was in 1978, but probley later. More accurate maybe to say we are past cheap oil- more methods for extracting from shale, ocean sites etc. More ways to extend an oil field by pressurizing it. Those methods are more expensive.

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  • Lender · Chicago, IL · Member since 2010 · 84 posts · 23 votes
    14y

    Please tell me when the BP community figures out where gas will be in the summer. I will be sure to take a futures position! :)

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    Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
    14y

    I'll take the contrarian viewpoint and say that gas will be about 30% lower this summer. Not only is usage down to lowest levels in over a decade, but there's reason to believe that domestic production of bio-fuels will (relatively soon) reach levels that will not only sustain us, but will provide some major export opportunities. Even our crude oil "production" should increase significantly over the next few years, and unless there is a major world event that causes another spike in crude prices, I have a feeling prices will be on the decline over the next year.

    Just my guess...

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  • Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
    14y
    Originally posted by Brian Levredge:
    Uwe S. E85 is ethanol based gasoline that was being subsidized in the US until somewhat recently. Ethanol was supposed to be an alternative to regular gas but it has since been shown to require more energy to produce than it saves. It's also not as energy efficient as regular gas. Plan to get less miles to the gallon than you otherwise would by as much as 25%.

    Thanks Brian for your reply but use anyone from BP this gas in his car?

    -Uwe

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  • Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
    14y

    Gas prices generally go up in the spring / summer. It would not surprise me to see $5 per gallon gas. Little is being done to increase supply or help the US become energy independent. While Americans are using somewhat less gas, the travel season is nearly here.

    It wouldn't take much to drive the prices up but IMO it is not likely to see prices decline. There seems to be to many right now that want Americans to get use to at least $4 per gallon gas.

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  • Property Manager · Dublin, OH · Member since 2009 · 1k+ posts · 291 votes
    14y

    Just I saw here useful informations. Best price today is in Morrison, CO at $2.99 - worst price is $5.96 in Death Valley, CA :).
    With this tool you can check some gas prices in your region.

    -Uwe

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