In my humble opinion.... Speculation.

A repeat of the oil bubble we went through last summer. Not just oil, but commodities in general. SURE, there are institutional buyers out there at this price, but as you correctly state, demand is DOWN. I deduce that there is oil out there that is being purchased and sat upon.

It wouldn't surprise me if a lot of this FedMoney that has been given to the banks, etc, is driving a lot of this.

Some players are probably hedging against a perceived blowup in the treasuries market, which might indeed happen, but their faulty logic is that the cratering in the treasuries market is only occurring on the long end of the yield curve. Translated, inflation worries are out there, but the market is applying this risk to the 10-30 year time frame, and NOT to short term debt.

My 2 cents worth of humble opinion....

In the USA gas prices will be $5.00 per gallon in 2011. With the far left in control of government our fearless leaders in Washington will demand cars get 40 miles per gallon. Then all ears O-bomb-a will get on the tube to sell you on the idea that you're actually paying less for gas because cars are getting better mileage.

It won't matter that nobody will buy these match box cars, since they will be available, that's how he'll justify the high gas prices.

In the USA...50% of the population supports 100% of the government AND also supports the "other" 50% of our population.

__________________
Gary Spicuzza, *SAFE
Copyright 1956.
No Rights Reserved.
*Self Appointed Financial Expert

Im not sure why people want to complain about gas. Gas is still cheaper in the US than most other countrys. While the rest of world has been driving 30+ mpg cars for almost 30 years now, GM is getting excited about a 2009 hybrid 21 mpg gallon truck. Based on what we use we should be paying more for it






Mark

Gas in America has the lowest tax of any industrialized country. France pays a little over 6$ per gallon. The only country that has cheap gas is China. Chinese pay less than 2.00$ per gallon. The government in china ownes everything and is actually taking billion dollar loses. The reason is because they are afraid of having the economy backlash from higher fuel prices so the government is taking the loss in fuel to keep a gain in the economy.

What bothers me is big oil has control. The demand for gas goes down, they cut production so they can increase price. How messed up is that? I would say it's a safe bet that people have come up with much better ways to use gas at a much lower consumption rate, but big oil butts in, pays them off, and buries their method

Oil and gas are two different commodoities. Yrs they are from the same source, but Oil is used for many other applications than just gas. and gas supplies are limited by production, not just demand

Gas prices are steadily creeping up and I really hope they don't become a stable $5/gallon or else we're just going to have to find other methods to getting around...maybe carpooling more often or using public transportation or even biking.

You guys are lucky. The prices in the UK at the moment are around 115.9p per litre. I did some calculations and that's $8.35 per gallon. Most of that money is tax.

TMBG, I am not sure it is luck. Your experience merely points out the flaws with socialism.

Wow that really makes me re-think my complaining about filling my tank up. I find myself driving across town to get the "cheap" gas. I shouldn't complain because I only have to fill up twice in a month so i spend about $70 in a month in gas. For those that are wondering i drive a 99 Pontiac Grand Am. I couldnt afford to pay anymore in gas especially with my 2010 resolution. My resolution is to thoroughly follow my budget to the "T". If gas gets any higher, I'll catch the bus, or when the weather breaks, ride a bicycle!!

I see you and I are on the same page!! But what about those who live in rural areas that are forced to drive. I miss the Gas prices when Clinton was in office!