Are you willing to 6 dollars for a gallon of gas!

**Danny** · February-15-12, 09:42 AM

This is it folks. By spring and throught the summer months. The Iranian proposed oil embargo and blocking the Strait of Hummuz will cause oil prices to skyrocketed close to 6 dollars a gallon. YIKES!http://www.clickondetroit.com/news/G...z/-/index.html

**rb336** · February-15-12, 10:05 AM

pure speculation. might happen, might not. We get very little oil from Iran as it stands now. An embargo against us would have little impact, and an embargo against India and the EU would rob them of their primary source of income. Iran would lose their entire Navy if they tried blocking the straights of Hormuz. They predicted $6/gallon LAST year and it didn't happen

**Crumbled_pavement** · February-15-12, 09:54 PM

Originally Posted by rb336

They predicted $6/gallon LAST year and it didn't happen

Yes, but this year we are closer to $6 than last year. We'll at least see $4.50 a gallon this summer even without any Middle East interruptions. If there is more turmoil in the Middle East I predict much higher prices.

Stay tuned...

**riviera** · February-16-12, 05:49 AM

I thought drilling in Alaska was the antidote to this? It happened yet so are higher fuel prices.

**rb336** · February-16-12, 11:30 AM

Yet again, pure speculation. We are around 30 cents higher per gallon than last year. We are well below where we were in 2008

**ndavies** · February-16-12, 11:55 AM

If gasoline reaches $6 a gallon it won't stay there very long. $6 a gallon gasoline will put the US back into recession. We will stop buying items, Particularly items from overseas. This will reduce oil purchases worldwide, bringing prices back down to a reasonable level.

This is the same argument I had on here before the great recession. I stated Oil prices could not stay above $100 a barrel for long. Our economy is not sustainable with oil above $110 a barrel. $110 a barrel fuel greatly contributed to the entire meltdown of the US economy.

We are still the biggest consumer nation in the world. We only have so much capacity to spend, We don't have access to the amount of credit we had before the last recession. High fuel prices will exhaust our ability to finance purchases much quicker this time around.

Occurrence · February-16-12, 05:20 PM

I hope gas does get that expensive. Maybe people will finally start to grasp the concept of mass transit. My family in Toronto, they never complain about gas prices because they don't own cars. They don't need them.

**Whitehouse** · February-16-12, 06:51 PM

We over here already past that mark. I tank Diesel and it's about E1.40/liter. Petrol is at about E165/liter.

**oladub** · February-16-12, 07:06 PM

For what it's worth, Gasoline prices have been higher than they are now for about 11 months of the last 6 years.

Ravine · February-16-12, 07:47 PM

Originally Posted by Occurrence

I hope gas does get that expensive. Maybe people will finally start to grasp the concept of mass transit. My family in Toronto, they never complain about gas prices because they don't own cars. They don't need them.

Yeah thanks, that's great. Maybe some of us already grasp the concept of mass transit but, thanks to the fact that this ain't Toronto and we don't have mass transit, we still need our cars and would like to be able to fill a tank without spending $70 to do it.

**Searay215** · February-16-12, 08:01 PM

If it hits $6 on the streets, at the marina, it will be at least $6.80 or more......hell yea I'm going to buy it and go out to my favorite spot, drop anchor, open a beer and just relax......no sense driving all over the lake.
As for the possiblity of this happening.....last year they said it was going to go to $5 and never did.....soooooooo As my father once said, believe nothing of what I hear and 1/2 of what I see.

Occurrence · February-17-12, 01:19 AM

Originally Posted by Ravine

Yeah thanks, that's great. Maybe some of us already grasp the concept of mass transit but, thanks to the fact that this ain't Toronto and we don't have mass transit, we still need our cars and would like to be able to fill a tank without spending $70 to do it.

Well gas prices in the $6-7 a gallon price range is going to happen eventually. Maybe not now, but years later down the road. Maybe people should start planting the seeds and start trying to get away from depending on affordable gas prices to live.

I know this isn't Toronto, but it's hard to believe in the past 30 years we haven't been able to advance ourselves past a shitty bus system and a monorail downtown that doesn't really do anything.

**Zacha341** · February-19-12, 09:51 AM

In a word YES. What is the alternative? The bus...? And not being able to work?

Less SUVs will be purchased by some.

**Gistok** · February-19-12, 12:55 PM

Originally Posted by Occurrence

I hope gas does get that expensive. Maybe people will finally start to grasp the concept of mass transit. My family in Toronto, they never complain about gas prices because they don't own cars. They don't need them.

Occurrence, occasionally you should take off your blinders...

You bring up Toronto.... what about the rest of Canada? How's mass transit going to help people in Sudbury or the farmers who have to plow their fields? You make things sound so simplistic when there are ripple effects to extremely high gas prices that you haven't even thought about....

Just ask any family members or friends that live in small towns or in the countryside.... I'm sure your smirky comment about mass transit will go over real big with them when they give you a look as though you came from another planet....

**Zacha341** · February-19-12, 04:56 PM

Well stated. My sentiments precisely....

Originally Posted by Gistok

....You make things sound so simplistic when there are ripple effects to extremely high gas prices that you haven't even thought about....

Just ask any family members or friends that live in small towns or in the countryside.... I'm sure your smirky comment about mass transit will go over real big with them when they give you a look as though you came from another planet....

**rb336** · February-19-12, 08:54 PM

Originally Posted by Gistok

Just ask any family members or friends that live in small towns or in the countryside.... I'm sure your smirky comment about mass transit will go over real big with them when they give you a look as though you came from another planet....

What, they can't get a horse & buggy?

**royce** · February-20-12, 02:20 AM

The problem with the talk of high gas prices is that no one can ever come up with a legitimate explanation for why gas prices are going up. Last week the talk was that we'll be approaching four dollars. For a moment at the pumps it looked like it was happening with gas at $3.55 on average. This weekend I saw gas prices as low as $3.19. What gives? I don't know who's stressing us out the most the speculators or the media reporting on what the speculators say.

**RaumVogel** · February-20-12, 02:56 AM

Mass transit fees always follow the price of gas. I only save a slight amount of money if I take the bus and that savings isn't worth the inconvenience .

**Zacha341** · February-20-12, 11:07 AM

Yeah I live a block away from a major bus line and a few blocks from Woodward should a light rail ever go down it... hah! A rail line will not be convenient to everyone and I am not too interested in toting things on a train when I need to shop. I guess in NY and Toronto it's the norm. All depends on what you are used to I suppose, or willing to adapt to....

Originally Posted by RaumVogel

Mass transit fees always follow the price of gas. I only save a slight amount of money if I take the bus and that savings isn't worth the inconvenience .

**oladub** · February-20-12, 12:05 PM

This recent surge has a bit to do with our foreign policy. Iran is reducing it's flow of oil to the west and there is the fear that Obama/Santorum/Romney/Gingrich policies could lead to the shutting off of Persian Gulf supplies. This may not be warranted but the fear is enough to drive up prices.

**Gistok** · February-20-12, 12:32 PM

There's a lot of interesting reading about the Straits of Hormuz on the internet... here's an example...
http://geography.about.com/od/politi...-Of-Hormuz.htm

Closure of the straits would have several negative impacts for Iran besides playing havoc with western oil supplies.... it would end up cutting its' own supplies from getting to other countries... and interestingly enough it would really piss of India and China [[and South Korea and Japan)... where Iran sends about 1/2 of its' own oil.

**mjs** · February-20-12, 02:46 PM

Originally Posted by Gistok

Occurrence, occasionally you should take off your blinders...

You bring up Toronto.... what about the rest of Canada? How's mass transit going to help people in Sudbury or the farmers who have to plow their fields? You make things sound so simplistic when there are ripple effects to extremely high gas prices that you haven't even thought about....

Just ask any family members or friends that live in small towns or in the countryside.... I'm sure your smirky comment about mass transit will go over real big with them when they give you a look as though you came from another planet....

To add to that, in a healthy economy, goods still need to be transported and goods to produce those goods need to be transported. It's why gas is such an inflationary factor.

Oladub, is your chart inflation adjusted?

**Det_ard** · February-20-12, 03:21 PM

In the last ten year the value of the dollar has fallen by 1/3 compared to a basket of other world currencies.

Since oil is priced in dollars, even if oil prices stayed the same over they last 10 years in global currency terms, in US dollar terms the price would have increased by 50% simply due to the decline in the US dollar.

That decline in the value of the dollar parallels the Fed's decrease in interest rates to near zero.

So when looking at the gas station sign that says "$3.599", think "$2.399" since that's what it would be had we not devalued our currency.

United States Dollar Index [[DXY)

The United States Dollar [[DXY) remained unchanged during the last month. During the last 12 months, the United States Dollar [[DXY) appreciated 4.69 percent against a basket of currencies. Historically, from 1967 until 2012 the DXY exchange averaged 98.51 reaching an historical high of 164.72 in February of 1985 and a record low of 71.58 in April of 2008. The US Dollar Index is a leading benchmark for the international value of the US dollar measuring the performance of the greenback against a basket of currencies which includes: EUR, JPY, GBP, CAD, CHF and SEK. This page includes: United States Dollar Index [[DXY), historical data and news.

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**Jimaz** · February-20-12, 05:47 PM

Those who read this thread might also enjoy the GasBuddy Blog.

**rb336** · February-20-12, 06:08 PM

Originally Posted by Det_ard

In the last ten year the value of the dollar has fallen by 1/3 compared to a basket of other world currencies.

Since oil is priced in dollars, even if oil prices stayed the same over they last 10 years in global currency terms, in US dollar terms the price would have increased by 50% simply due to the decline in the US dollar.

That decline in the value of the dollar parallels the Fed's decrease in interest rates to near zero.

So when looking at the gas station sign that says "$3.599", think "$2.399" since that's what it would be had we not devalued our currency.

United States Dollar Index [[DXY)

The United States Dollar [[DXY) remained unchanged during the last month. During the last 12 months, the United States Dollar [[DXY) appreciated 4.69 percent against a basket of currencies. Historically, from 1967 until 2012 the DXY exchange averaged 98.51 reaching an historical high of 164.72 in February of 1985 and a record low of 71.58 in April of 2008. The US Dollar Index is a leading benchmark for the international value of the US dollar measuring the performance of the greenback against a basket of currencies which includes: EUR, JPY, GBP, CAD, CHF and SEK. This page includes: United States Dollar Index [[DXY), historical data and news.

The big drop, of course, came during the Bush years, reaching a low in 2008. it has been up and down since, currently trending up, and international investors view it more positively than other currencies. If you were to graph low interest rates over the same period, guess what you would find! ZERO correlation. it does NOT " parallel the Fed's decrease in interest rates to near zero"