Higher Gas Prices Assuredgreenspun.com : LUSENET : TB2K spinoff uncensored : One Thread
Reposted for Educiational/Research purposes only
Government sees higher gas prices this summer By H. Josef Hebert The Associated Press March 6, 2000 12:28 p.m. CST
WASHINGTON (AP) -- The Energy Department today predicted sharply higher gasoline prices this summer even if the worlds oil producers agree later this month to increase production.
``Retail gasoline prices are poised to surge to unprecedented levels before the spring is out, said the report by the Energy Information Administration.
It said U.S. gasoline stocks ``remain alarmingly low and as far as the gasoline market is concerned the country ``is moving into uncharted territory.
And government analysts forecast that if higher oil production is put off until the fall, there likely will be a repeat of the soaring heating-oil prices that have plagued the Northeast this winter.
``World oil prices should remain high for most of the year as inventories are expected to remain low, even with an assumed increase in OPEC production of 1 million barrels per day, the government analysis said.
The forecast by the Energy Departments statistical agency said gasoline prices, already nudging near $1.50 a gallon on average nationwide, well continue to increase and could easily reach the $1.75 to $1.80 a gallon range during the peak driving summer months and spike even higher in some areas.
An oil production increase of 1.7 million barrels worldwide using one hypothetical scenario put into place immediately could drive down oil prices from nearly $32 a barrel to $25.50 a barrel, the agency said. But even that would not impact gasoline prices this summer, it added.
Members of the Organization of Petroleum Exporting Countries are scheduled to meet March 27 to decide whether to increase oil production and ease an acute crude-oil shortage worldwide. Worldwide consumption is 2 million barrels a day greater than supply. A barrel is 42 gallons.
Three major producers Saudi Arabia, Venezuela and Mexico have already said they will recommend some production increases and another producer, Kuwait, has signaled a willingness to go along.
But the analysis released today by the Energy Departments statistical agency suggested that even major production increases of 2.5 million barrels a day, if begun immediately, would not head off significantly higher gasoline prices this summer.
The agency concluded that the additional oil would not show up in time to suppress gasoline prices as Americans take to the road for the summer historically the busiest driving season of the year.
The government forecast no easing of gasoline prices in May and June, with average nationwide prices heading conceivably into the $1.70-a-gallon range and possibly higher, sources familiar with the report said.
That assumes an increase in oil production.
The analysis used a number of production scenarios, from OPECs delaying additional oil production until the fall to a decision to pump an additional 2.5 million barrels a day, beginning in April.
None of the scenarios was shown to have much of an impact in short-term gasoline prices heading into the summer, said the source, who spoke on condition of anonymity. It would take time for the new supplies to work into the system.
Just over a year ago, OPEC oil producers cut production by 4.3 million barrels a day after seeing world oil prices plummet because of a supply glut.
Since then, oil prices have soared from $10.72 a barrel on Dec. 10, 1998, to $31.78 a barrel today on the New York Mercantile Exchange.
-- Tommy Rogers (Been there@Just a Thought.com), March 06, 2000
3 countries say different
link on TB2000
-- awdragon (firstname.lastname@example.org), March 06, 2000.
(Awdragon, you forget that not everyone can click on that link and view it.)
Posted by Chemtrail Pilot on EZTB2K
Tuesday, March 7 12:49 AM SGT
Iran, Algeria, Libya oppose OPEC production increase: IRNA TEHRAN, March 6 (AFP) - Iran, Algeria and Libya are against any increase in crude oil production from the end of the month, the Iranian news agency IRNA said Monday, quoting a statement by the Iranian oil ministry.
The statement referred back to a meeting of the oil ministers of the three OPEC hardliners in Tripoli on January 21, indicating that nothing had changed since then.
"Demand for crude oil has started to drop by three million barrels per day (bpd) for the second quarter of the year and the Organization of Petroleum Exporting Countries will maintain the current level of output beyond March 31, 2000," IRNA quoted the ministry as saying.
OPEC gathers in Vienna on March 27 to draft its production strategy from the end of the month, when an agreement to cut production runs out. Member states have previously said that any decision must be unanimous.
"The oil ministry said taking into consideration the market stability, the global stocks, the three million bpd drop in crude oil demand in the second quarter of the year, and the economic growth of the developing and the industrial nations, there will remain no concern about the level of crude oil prices," IRNA said.
"The communique said Iran, Libya and Algeria emphasized the responsibility of OPEC and non-OPEC countries to maintain market stability,' IRNA added.
"The oil ministry said Iran, Libya and Algeria will hold consultations with the other OPEC members and are expected to hold a meeting ahead of the Vienna meeting on March 27," it said.
The reported views of Iran, Libya and Algeria helped to drive the price of oil up to fresh nine-year highs on Monday.
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-- Crossposter (email@example.com), March 06, 2000.
Gaad, the TRUTH is so hard to come by........
-- Tommy Rogers (Been there@Just a Thought.com), March 06, 2000.
All I know is gas is $1.54 here in west Texas, and we are close to the oil field. Is there anyway to home brew gasoline for the automobile. I can get the crude.
-- salene (firstname.lastname@example.org), March 06, 2000.
Regular unleaded at 1.75 today! =(
-- cin (email@example.com), March 06, 2000.
That is high , I should be thankful for my buck54 stuff.
But the ? is still here, I got crude in the yard, can I make it into gas, all you wise ones?
Surely there is a drip system or something.
-- 3 legs (firstname.lastname@example.org), March 07, 2000.
It went up another 2 cents/litre here today; that makes it a 30% increase in the past year. www.gastips.com (the only way to shop around for the lowest prices)
-- firefly (email@example.com), March 07, 2000.