Are gas prices about to take off?
Prices at the pump have been dropping for months. Industry analysts are trying to gauge future movement, but say the 'fiscal cliff' could be a determining factor.
Has the easing of prices at the pump been a final holiday present for consumers, or just part of the annual cycle of supply and demand?
Gas prices have been dropping for months. Several cities even reported unleaded gas dipping below $3 per gallon over the holidays, but in recent days the price of gas has been creeping up. The national average for a gallon of unleaded was $3.28 Friday, up from $3.26 Thursday and $3.23 a week ago, according to AAA.
AAA singles out several factors for the decrease in prices this fall and winter: larger gas inventories, lower crude oil prices, less demand for gas during the winter months as well as a switchover to less-expensive winter blends of gasoline. The ongoing economic downturn is also having people think twice about how often they find themselves at the pump.
But prices are due to bottom out sooner or later. And now, with crude oil prices firming and continued political and economic uncertainty, the market is apparently at a crossroads.
"Whether gas prices continue to rise or again turn lower will be impacted by action -- or inaction -- in Washington surrounding the looming 'fiscal cliff,'" said AAA’s Avery Ash in the Association's latest Fuel Gauge Report Overview.
"If a deal is reached before the end-of-year deadline it will likely be seen as positive for the U.S. economy, which could send crude prices and gas prices higher. If a deal is not reached, markets are likely to slump and gas prices could go even lower."
But other observers believe the trend is for gas prices to rebound as they usually do in the new year.
"It's happened six out of the last seven years: The national average has risen between Christmas Day and Jan. 15, and this year there's no reason to believe now that this won't happen again," says petroleum analyst Patrick DeHann in his GasBuddy.com blog.
And you can also throw into that mix new projections by the U.S. Energy Information Administration for 2013 and beyond.
The EIA is expecting greater domestic energy production, particularly of crude oil, to continue -- with overall gas consumption to be lower next year. The a.gency says the introduction of stricter fuel economy standards in new vehicles, along with the increased use of natural gas in heavy-duty vehicles, should also have a lasting impact on gas and other energy sources.
These changes, said EIA Administrator Adam Sieminski in a press release, show how "evolving consumer preferences, improved technology, and economic changes are pushing the nation toward more domestic energy production, greater vehicle efficiency, greater use of clean energy and reduced energy imports."
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This is by no means an accusation ,however I do wonder If maybe the people in upper positions of our government , and their lobbyists arn't bonofied stock holders in these major Oil companies . And this business with the dairy farmers being hit we could see a gallon of milk at $8.00 a gal. it seems like our worst enemies or our own leaders, I think if all americans took a break at a crucial time (just like our politicians) and stopped doing anything like working, paying taxes, driving , and supporting their bad conduct for even a week things would sure change, yes it would hit us hard, but no harder then we are hit now, and it would let them know that we are fed up. We want responsible and fair changes. After all the American people make up this country not just the The Few, The Overproud, and The Corrupt.(no disrespect to the Marines) And by the way our Military is the steel structure of our country.
EVERYTHING IS ALREADY UP NOT JUST GAS! ALL ON OBAMA'S WATCH! BLAME HIM JUST LIKE YOU LIBS BLAMED BUSH! HE'S
DONE MORE DAMANGE WITH REGULATIONS AND TAXES AND FEES AND SHUTTING DOWN CHEAP ENERGY AND LEFT WING
DEMOCRATS AGENDA WHICH IS COMPLETE FAILURE! HE'S WORRIED ABOUT GAY MARRIAGE TODAY INSTEAD OF FIXING
MEDICARE AND SS WITH THE REPUBLICANS SO ALL OUR TAXES ARE GOING UP WHICH IS WHAT HE WANTED AND THEY
WERE GOING UP ANYWAY! NOW THEY WANT TO TAX US ON OUR MILEAGE? PUT DEVICES ON OUR CARS? SOCIALISM!!!!
I've wondered about the price and cost recovery on a Tesla, along with maintenance or life of the technology in the car ??...Funny I almost invested in the IPO, but didn't.
Within a Generation, I'm sure we could have 10-15% of the E-vechicles on the road, but maybe compressed or liquefied Ngas is a fairly good alternative also....
With prices of the Vechicles coming down we have surmounted the greatest hurdle...
Then applications and availibility of the fuel/E source is another...
Fiscal cliff happens. Gas continue to rise and then economy back into recession.
I'm pretty sure the oil companies pay other group to stir up stories or issues to get gas price to rise. They profit more from making mistakes.
everyone on s.s. and/or a pension who just got a gigantic 1.7% cola increase thanks to our benevolent represenatives is being played for a chump. that's 1.7% per year at a time when food and gas prices seem to be going up at a 1.7% jump per month. you are all being ripped off. by about 6%. so where is that 6% going? to pay off their spending habits off course. feel better now?
I would think supply and demand will dictate the price of fuel.....?
But we will always have the manipulation factor..
Some could say we threw millions at wind,solar and lithium battery makers...
But we now have feasible electric vechicles on the road...Competition dropped some battery companies on the scrap pile of hope....Wind power is growing and getting CHEAPER and Solar has slowed but making interesting inroads...
Strangely..The oil and gas companies have made great strides into shale oil/Ngas fields...Hmmm.
I remember when we had 2-Lane hi-ways and a lot of dirt roads, someone or people built a huge dam in the desert, The TVA was a pipedream and we spent millions on a damn "snail darter."
At one time we only looked at the moon through a telescope and wondered about the cheese.
And we plowed the fields with horses or mules....Yeah, the damn "good old days."
I MAYBE AN IDIOT BUT I DID NOT VOTE FOR AN IDIOT SO I AM NOT QUITE THE IDIOT YOU MUST BE
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Markets across most of Asia ended on a lower note, while Japan's Nikkei was closed for Autumn Equinox.
- Economic data was limited:
- China's HSBC Manufacturing PMI ticked up to 50.5 from 50.2 (expected 50.0)
- Singapore's CPI eased to 0.9% year-over-year (expected 1.2%; previous ... More
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