Do you think gas will reach $100 a barrel by January?

Question

Do you think gas will reach $100 a barrel by January?

Answer 1

HUBA- $35.00 of that $165.00 a barrell of gas is taxes.

Answer 2

No

Answer 3

Crude oil is not likely to spike up again by January.  Typically, demand is softer during the holiday season, as people don't travel as much just before the holiday.  December is traditionally one of our slowest months.  So my opinion is, barring any unforeseen geopolitical upheavals, oil will remain on the downswing in pricing terms.

To address a few minor errors in my fellow responders' answers:

1- Gasoline futures are currently about $2.30/gallon for RBOB, which is the regular base petroleum, making a 42 gallon barrel about $97, so if the questioner really meant gasoline, she wasn't far off, but my opinion still holds, I see a softening of prices through February and into March, before our annual spring spike.

2- Venezuela is our 4th largest source of crude, behind, in descending order, Canada, Saudi Arabia, Mexico.  We get almost twice as much oil from Canada as we do any of these others.  And Chavez can bluster all he wants, without our business, his government would be in serious trouble.  He knows that.  He needs American dollars to support his agenda, so while it may sound precarious to the average consumer, oil industry experts know Venezeula will be sending oil to the US for a long, long time.

3- Buyers, not traders set prices.  A trader can only execute the deal the buyer requests.  If a buyer feels oil is too expensive, the buyer will wait.  When the buyer recognizes an opportunity for profit, a sale is executed by the trader on behalf of the buyer.  Ultimately, we, the consumer, set prices.  We demand oil and the producers supply it.

Answer 4

it's not a question of if, but when.  It will get there.  just dont know when.

Answer 5

Gas is not at that price, oil is near there at around $90 a barrel. gas is actually more expensive.  A 55 gallon drum at $3 a gallon is $165.

I suspect your intent was whether or not oil would go that high. OPEC leaders have stated they don't want it that high; the only wild card is Venezuela and their crazy leader. He may shut off their flow - they are the 3rd largest provider of oil to the US.

Answer 6

it depends on the weather....a mild winter.no.................a crises in the Middle East .yes..........I think NO

Answer 7

It may, but as another answer has pointed out, it is not in OPEC's best interests for it to stay there. Laws of supply and demand. It is not OPEC that determine the prices however, it is the traders on the commodity exchanges. If Venezuela decides to stop shipping the the U.S., say good bye to Chavez, his country would revolt. Venezuela can not long survive without U.S. oil dollars.

Another thing to consider, if the prices get to high, we will stop driving as much, and the demand will drop. As the demand drops, OPEC nations will start seeing their bank accounts dry up, and they do not want that happen.