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August 31, 2005

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cnulan

95% of gulf oil production is gone. 1.5 million barrels and all that refining is clearly non-negligible production loss....,

DarkStar

Understood, but to be felt in about 2 days?
No.
Gouging.

cnulan

Nope, new reality long overdue its full manifestation. time to smell the coffee..., and accept the new reality - cause it's never coming back down again, ever.

cnulan

But what may be more disturbing is that Tuesday's daily spot price for gasoline in the U.S. Gulf closed at $3.12. Traditionally, the average U.S. retail price is about 70 cents over the Gulf spot price, said Tom Kloza, chief oil analyst at the Oil Price Information Service.

"I'm not prone to hyperbole, but this is a more serious problem than we've seen in distribution since the Iranian revolution," Kloza said.

sounds like you're getting off easy to me.

brotherbrown

I filled up yesterday when I could still find gas at $2.699. My daughter, living in El Paso, told me this morning that she paid $2.999 for gas that was $2.54 a day earlier. 45 cents in one day.

A report at CNN.com says $4.00 is not far off.

brotherbrown

P.S., the man Pat Robertson wants the lord to assassinate can sell you gas for twelve cents a gallon.

cnulan

A report at CNN.com says $4.00 is not far off.

CN had to give Cobb $20.00 several months back for making that same forecast, but a year early. Oh well, no shame in that game. Matter of fact, pretty dog-gone good prognostication if I must say so myself as a non-professional, non-energy sector amatuer....,

zulu warrior

Not Gouging, just new reality.

Get ready for $5 a gallon, per CNBC

zulu warrior

Not Gouging, just new reality.

Get ready for $5 a gallon, per CNBC

zulu warrior

Not Gouging, just new reality.

Get ready for $5 a gallon, per CNBC

zulu warrior

The price of gas at the pump is a composite of 3 factors: production of crude, refining costs, and taxes that are local plus profit.

When there is a loss of production of crude, the impact means that the cost to replace what's at the pump will cost more. If both refining and crude production is down, then gas getting to your local pumps must either travel further to reach you (increase cost) or it wont reach you at all (scarcity). Either way its going to go up and there is nothing to stop it, unless someone provides a bunch of oil from some other place cheaply (Strategic Oil Reserve).

Either way, get ready for $5 a gallon, per CNBC.

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