Gas prices headed to record highs in 2012, Oil Price Information Service analyst, Kloza says.

[Bill USA]

http://www.latimes.com/business/la-fi-gas-prices-20111108,0,2392493.story


"We are at the highest fuel prices ever for this time of year, even though they have dropped a bit in recent weeks," said Tom Kloza, chief oil analyst for the Oil Price Information Service. "I think we will see prices in 2012 that will break … records."

Kloza said Americans are on pace to spend a record $489.7 billion on gasoline in 2011, which is $100 billion more than they did in 2010. The only year that came close was 2008, when U.S. motorists spent about $448 billion on gasoline; that year, the U.S. average peaked at $4.114 a gallon and the California average hit a record $4.588, but prices quickly declined from those summer highs.

Fuel price specialist Bob van der Valk said that oil prices, which have been creeping back toward $100 a barrel, eventually will boost gasoline costs.

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... not to worry, maybe we'll sell 27 million hybrids before then ..... oh-h-h-h, 27 million would be about 10% of the total light vehicle fleet. Assuming hybrids reduce gas consumption on average about 25%, that would reduce gas consumption about 2.6%.

[DJ13]

1. Obama will have some splain'in to do for his reelection if true

He campaigned in 08 on reigning in speculation of commodities to prevent gouging consumers.

[RC]

3. Another Obama campaign promise not kept.

Has he actually kept any?

[Andy823]

2. Two reasons for higher prices

1. They are going to get all they can, like they did before the elections in 2008 because they are not sure republicans will be in charge of he house "after" the elections just like they were pretty damned sure a republican wasn't going to be in the WH come 2009!

2. They know that higher gas prices will hurt the economy, and that in turn will hurt the president. They will do everything they can to make sure things are bad come election time.

It all adds up to one thing. These BASTARDS are the scum of the earth and they only care about their own greedy profits, not this country!

[Citizen Worker]

4. If we had a justice department that was focused on enforcement we may not be staring into the energy

abyss next year. Instead of an investigation into commodity market manipulation we'll hear "drill baby drill," and Obama will capitulate.

[Bill USA]

7. pls see my observation at link....

at the current level of economic activity - world-wide - oil should be at no more than $70 a barrell

[Populist_Prole]

5. Another angle, if I may

Is that it is a "softening up" of the hoi-polloi, "trial balloon", a sort of "we own your asses, get used to it" by the corporate de-facto powers that be.

I'll not doubt that gasoline prices will rise ( as they always have ) but many predictions of this type are/were overstated. It's not just gas prices: I've seen this before.

[Bill USA]

6. at the current level of economic activity - world-wide - oil should be at no more than $70 a barrell

The reason for the price rise we are seeing now is.... the ARAB Spring. Any degree of uncertainty clouding the supply of oil in the near future causes speculators, the world over, to bid up the prices. If events cause speculators to have more doubts about the reliability of future oil supplies, prices of $130 a barrel will quickly become a fond memory.

This is next to impossible to predict but if the doubts increase about the reliability of the supply of oil, we could go to $150 a barrel by the end of 2012.

This is why we should be going full-blast to expand renewable fuels, support for public transit, and tax disincentives for purchase of less fuel efficient 'rides'. But this doesn't 'sell' well with the public and the GOP would punish anybody who tried to pursue a responsible, proactive public policy on this matter. Lacking that, we are recklessly gambling with our economic future. IF oil were to go to $125 or more a barrel it would kill our meagre recovery from the Trickle Down - Deregulation Disaster. Say good-bye to ANY economic growth and hello to perpetual 7% unemployment (even without the current Republican Dystopia).