Study Indicates That Gas Prices Have To Exceed $3 A Gallon Before Consumers Change What They Drive

Gas prices usually rise as the US economy (and other world economies) show signs of growth. Until recently, GDP growth has been anemic, but it has picked up a bit in the past quarter which coincides with the gradual uptick in gas prices. With Trump taking over and expectations of getting back to a growing economy, I would look for gas prices to continue to rise.

According to the info I'm seeing and how I interpret it, the rise we're seeing in gasoline prices is temporary. Reasons:

1. Middle Eastern countries have an oil supply glut

2. US oil reserves are busting at the seams (inventory glut)

3. Oil tankers are waiting offshore (US), because storage facilities don't have the spare capacity to receive the product.

4. Giga-tankers are now being rented as temporary storage facilities in oil-producing countries. They're still extracting it, but can't ship because the receiver's (US) storage facilities are full.

5. President-Elect Trump is VERY pro-business, and doesn't give a rip about the environment or human wellbeing. Put those two factors together, and industry specialists *speculate* there'll be a free-for-all in extracting yet more oil stateside, thereby producing yet more oil to add to the already-full storage facilities.

6. Reports claim that impoverished Iraq is not holding to OPEC's decree to limit oil supply. They desperately need the oil money. Yet more oil in a saturated market.

7. Renewable energy is becoming more popular, and it's gradually decreasing the need for oil and gasoline. Yes, it's just a drop in the bucket at this time, but it's growing, and fast. Energy reports are speculating that the oil-consumption peak *might* be behind us.


If you asked me to be on whether prices go up or down, I believe they'll go up for a few more months (seasonal), then we'll see a decline again. Hard to tell what will actually happen.

re #5's "doesn't give a rip about the environment or human wellbeing" -- Analysts *speculate* Trump will "relieve environmental impediments" that are currently slowing Big Oil to an extent. Without these "impediments" (i.e., environmental protection laws, which affect the wellbeing of flora, fauna, and human alike), US Big Oil will accelerate oil production.

#2 also includes shale production being more efficient and profitable at current oil prices - that's a big problem for the Middle East. As a matter of fact the U.S. is producing so much oil that for the first time in 40 years, we are legally able to put our oil on the open market for export.

Steve-Regarding your second point, you do realize that we have way too many environmental regulations and Obama's drag on the economy is a key reason we have seen prices drop. I agree some of your points are factors too, but historically gas prices go down in weak economies, and rise in strong economies. We have just gone through the worse economic recovery under Obama, and now we are seeing the country optimistic/bullish for a Trump Presidency. The market has gone up even more since the election, many companies are openly admitting they plan to hire more, and consumer confidence has hit a 13-year high.

bnilhome: re "...Obama's drag on the economy..."

I'm looking around for news of this alleged recession or hurting economy. As far as I can tell, the good ol' U.S. of A is in pretty sound shape, though as always, it's still not "perfect." I guess the economists missed it, too. Thanks for the tip off!

quizz: re "...#2 also includes shale production being more efficient and profitable... [The USA will be] able to put our oil on the open market for export..."

You are absolutely right! Continental US oil production goes up in a country whose oil reserves are already overflowing, and in a world in which an oil glut already exists. That means yet more oil available, which will assist to drive down world oil commodity prices.

That's what I anticipate, but all we need is one war in the Middle East and the whole pump-price game changes. Anyone taking bets on when it breaks out? :-/

The only Truth all of your article, Mr. TheSteve is "Hard to tell what will actually happen....

Sorry Steve-There has been plenty of literature written on how this has been the worst economic recovery since the Great Depression. I do think the latter half of 2016 things have finally improved, but GDP growth has been anemic under this POTUS. We have seen growth in poverty rates and income equality as well, plus the addition of more debt to our national debt than any other POTUS in history. Next Friday cannot come soon enough!

http://www.washingtonexaminer.com/report-worst-economic-recovery-since-1930s-salaries-fall-17000-short/article/2598311

AMEN Obama = Carter's fiscal idiocy + Nixon's criminality.

bnilhome: You're absolutely right... depending on whether you believe CNN or FOX, Obama is either God or The Devil.