Time to buy a Hybrid?

[RiversideGator]

On the contrary:

Veteran Energy Economist: Oil Headed for $20-25

Veteran energy economist Philip Verleger insists oil never should have gone much above $70 a barrel; that it did so only because of "a perfect storm" of U.S. policy mistakes, European economic developments and currency shifts; and that it could well end up back in the low $20s before the global economy gets back on its feet.

"I think it will go a good deal lower, particularly next spring [when oil markets are traditionally weakest]," Mr. Verleger said. "If this thing follows a natural cycle, I think we'll see something as low as $20 to $25."

~From yesterday's Globe and Mail, Canada's largest circulation national newspaper

MP: The last time oil was $25 per barrel (2003), gas was selling at about $1.50 per gallon. The last time oil was $20 (2001), gas was close to $1

http://mjperry.blogspot.com/2008/11/veteran-energy-economist-oil-headed-for.html

[Driven1]

i disagree.  read the article in WSJ today about forward-priced barrels of oil (beyond delivery date of next month).  those prices haven't dropped much at all.

BUT...if this guy is right, i'm buying MORE of "DXO" in the spring.  returns DOUBLE whatever brent crude does. 

[civil42806]

On the contrary:

Veteran Energy Economist: Oil Headed for $20-25

Veteran energy economist Philip Verleger insists oil never should have gone much above $70 a barrel; that it did so only because of "a perfect storm" of U.S. policy mistakes, European economic developments and currency shifts; and that it could well end up back in the low $20s before the global economy gets back on its feet.

"I think it will go a good deal lower, particularly next spring [when oil markets are traditionally weakest]," Mr. Verleger said. "If this thing follows a natural cycle, I think we'll see something as low as $20 to $25."

~From yesterday's Globe and Mail, Canada's largest circulation national newspaper

MP: The last time oil was $25 per barrel (2003), gas was selling at about $1.50 per gallon. The last time oil was $20 (2001), gas was close to $1

http://mjperry.blogspot.com/2008/11/veteran-energy-economist-oil-headed-for.html

Not a chance in the world that will happen

[Driven1]

i'm with you Civil - it went up 10% today to $70/barrel.  just one day's move, but I don't think we'll EVER see $25/barrel again.

[RiversideGator]

i'm with you Civil - it went up 10% today to $70/barrel.  just one day's move, but I don't think we'll EVER see $25/barrel again.

Now that Obama has been elected, I will have to agree with you.  Look for permanently higher gas prices in the near future.

[Bostech]

Oil will hit 25 when electric cars become mainstreem and when US president cracks down on oil gang.

[Driven1]

Oil will hit 25 when electric cars become mainstreem and when US president cracks down on oil gang.

that should be happening soon then, right Bos?  now that we have a democratic president, there should be no war, equality in the land, no dependence on foreign "oil gangs", etc...  right?

[RiversideGator]

 

[SunKing]

Reality check here.  Not sure that the President has much to do with oil prices.  I always thought it was more about supply and demand.  Demand is down 15% from last year.  First decrease in history.  Demand was also inflated by commodities trading and that bubble burst.  A 15% drop in demand with all the new production out there (Supply)= low fuel prices. 

Obama's impact may have an indirect impact on fuel prices though.  Obama wants to increase alternative energy use which means more money subsidizing that = less oil demand = lower prices.

I tend to agree with the "veteran energy economist."

[RiversideGator]

Another reality check:  Obama will attack US supply by not allowing additional offshore and inshore drilling.  He will also fail to significantly reduce demand in the US as his pie in the sky "solutions" are not really workable.  Finally, Obama cannot control the world demand which will resume its increase after the downturn ends.  Less supply and more demand equals higher prices.

[SunKing]

I think that we can all agree that offshore drilling is a long term solution and has no impact on fuel prices today.  The world is in a slowdown, demand is down everywhere.  Obama has nothing to do with it. But we shall see.

[TPC]

I know everyone is talking about oil, but what about hybrids?

Anyone looked into the Chevy Volt? GM is really betting on this vehicle to help their huge decline in the auto industry. It's considered a series hybrid in which the gasoline engine only charges the battery after the initial charge has worn off. A charged battery is supposed to get around 40 miles.

It sounds interesting but it will have a higher price, probably over 40K.

I wish I didn't even need a car, but as we all know JTA is a joke and public transportation in Jax is horrible.

[BridgeTroll]

It sounds interesting but it will have a higher price, probably over 40K.

Therein lies the problem...  90% of us will not be able to afford this type of vehicle.

[RiversideGator]

I think that we can all agree that offshore drilling is a long term solution and has no impact on fuel prices today.  The world is in a slowdown, demand is down everywhere.  Obama has nothing to do with it. But we shall see.

No, we cannot all agree on this.  Allowing offshore drilling going forward has an immediate effect on oil prices in the short run as the prices in the futures markets reflect expected future supplies and demand.  Obama will not agree to what it takes to increase supply, demand will inevitably increase and thus prices will also increase.

[SunKing]

$1.43 for gas.  Oh my.  I might just drive for the hell of it now.