1. Post #1
    I love liberals, they make me so fucking hard I just want to cum all over the place while fucking a pony.
    Glaber's Avatar
    January 2008
    4,468 Posts
    CNBC
    $6 Gas? Could Happen if Dollar Keeps Getting Weaker
    [release]A dollar plumbing three-year lows is hitting Americans squarely in the gas tank, and one economist thinks it could drive prices as high as $6 a gallon or more by summertime under the right conditions.

    With the greenback coming under increased pressure from Federal Reserve policies and investor appetite for more risk, there seems little direction but up for commodity prices, in particular energy and metals.

    Weakness in the US currency feeds upward pressure on commodities, which are priced in dollars and thus come at a discount on the foreign markets.

    One result has been a surge higher in gasoline prices to nearly $4 a gallon before the summer driving season even starts, a trend that economists say will be aggravated as demand increases and the summer storm season threatens to disrupt oil supplies.

    "All we have to have is a couple badly placed hurricanes which could constrain some of the refinery output capacity in some key locations," says Richard Hastings, strategist at Global Hunter Securities in Charlotte, N.C. "If you get weakness in the dollar concurrent with the strong driving season concurrent with the impact of one or two hurricanes in the wrong place, prices could go up in a quasi-exponential manner."

    Using a model that combines "subtle rates of change" with movements in the dollar index [.DXY 73.91 -0.46 (-0.62%) ] and commodity prices, Hastings figures the low dollar is responsible for about one-third, or $1.31, of the total gas-at-the-pump cost. Regular unleaded Wednesday was $3.84 a gallon nationwide, according to AAA.

    While there's far from unanimity about the dollar's future course, the proportionate contribution that currency weakness makes to oil prices is clear.

    The dollar as measured against a basket of foreign currencies has dropped 6 percent this year, while regular unleaded gasoline is up about 28 percent.

    Gas prices also have been boosted from turmoil in the Middle East which in turn has triggered a wave of speculation that traders estimate has added about $15 or so to the cost of a barrel of crude [CLCV1 112.15 ^ 0.70 (+0.63%)], which is now teetering above the $110 mark.

    astings sees gasoline having "no problem" getting to $6.50 a gallon over the summer after increased demand and storm disruptions come into play.

    Others, though, say gasoline prices haven't needed any help so far from other events—the moves by the Fed to keep interest rates in negative real terms are enough to boost energy by themselves.

    Michael Pento, senior economist at Euro Pacific Capital in New York, says there is an almost perfect negative correlation between the falling dollar and oil prices—minus-0.9 to be exact.

    "When you have negative correlations that strong, it's not hard to understand that the reason why we're having this price spike in commodities is primarily because of the weaker currency and not because of shortages of oil or international tensions or global growth," Pento says.

    The assertion from Hastings that the weak dollar is responsible for one-third of the total cost for a gallon of gas "sounds very low," Pento says, adding that a barrel of oil should be closer to the $65 to $70 range if priced properly.

    "That's exactly where it would be if we weren't crumbling our currency," he says.

    Should events follow their current course, sharply higher gas prices will burden consumers further as they also cope with the rise in food costs this year.

    Hastings projects the dollar index to test 72 at some point—another 3 percent drop—while Peter Cardillo, chief economist at Avalon Partners in New York, sees the dollar dropping to the 73.50 level.

    "The global economy is quite strong, and the weak dollar is basically fueling even higher energy prices. That's not transitory," Cardillo says. "Gas prices in the Northeast are over $4 a gallon. How could anyone say that's not a burden?"[/release]
    http://www.cnbc.com/id/42683030
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  2. Post #2
    Gold Member
    Pace.'s Avatar
    September 2010
    1,355 Posts
    in b4 europeans complaining about much higher than $6 gas prices despite living in a much smaller country than the US
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  3. Post #3
    Lizard Of Guilt's Avatar
    April 2011
    530 Posts
    anything is possible if you imagine
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  4. Post #4
    Armyis1337's Avatar
    October 2009
    2,726 Posts
    Gas prices in Canada are skyrocketing as well.
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  5. Post #5
    Gold Member
    Dennab
    February 2007
    6,746 Posts
    Australia dollar is best dollar.
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  6. Post #6
    Gold Member
    Zeke129's Avatar
    July 2007
    41,752 Posts
    Gas prices in Canada are skyrocketing as well.
    It's making our dollar stronger than the US dollar though, which is good if you want to buy shit online

  7. Post #7
    Gold Member
    Crhem van der B's Avatar
    January 2010
    1,691 Posts
    in b4 europeans complaining about much higher than $6 gas prices despite living in a much smaller country than the US
    How size has to do with anything?

  8. Post #8
    Gold Member
    Kagrenak's Avatar
    February 2006
    2,024 Posts
    How size has to do with anything?
    Commute times/average driving distance are probably a bit shorter. Too tired right now to find stats to actually participate.
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  9. Post #9
    Gold Member
    Crhem van der B's Avatar
    January 2010
    1,691 Posts
    This is probably the worst argument for higher prices in the EU I've ever heard.
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  10. Post #10
    Hullu V3's Avatar
    October 2009
    6,412 Posts
    This is because of Finlands elections.
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  11. Post #11
    Gold Member
    sam.clarke's Avatar
    March 2005
    2,593 Posts
    Pfft, you still ain't got it so bad.

  12. Post #12
    Ringo_Satu's Avatar
    June 2010
    767 Posts
    in b4 europeans complaining about much higher than $6 gas prices despite living in a much smaller country than the US
    What?
    You got to be kidding me.

  13. Post #13
    I wasted a dollar on a stupid title.
    nikomo's Avatar
    September 2007
    16,846 Posts
    Commute times/average driving distance are probably a bit shorter. Too tired right now to find stats to actually participate.
    Small country, small population, jobs are packed into big centers called cities, not everyone lives in the city and maybe your city doesn't have jobs for you so you have to drive to another city daily to get to work.

    Hell, I had to take a 30-minute drive 40km drive twice a week to another city for my work placement period in school.
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  14. Post #14
    Gold Member
    MachiniOs's Avatar
    September 2008
    12,295 Posts
    in b4 europeans complaining about much higher than $6 gas prices despite living in a much smaller country than the US
    That's a terrible argument, what about Bahrain? It's small yet before the protests gas was piss cheap.
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  15. Post #15
    Antdawg's Avatar
    July 2010
    5,037 Posts
    So when will the US dollar become stronger again? Gotta enjoy these awesome import prices while they last here in Australia. Back when I got the Valve Complete Pack in early 2009 although it was $99US it cost me well above $130AU, but if the Valve Complete Pack was still on the AU store, it would only cost $95AU or so if it was $99US.

  16. Post #16
    Gold Member
    Ultimate7MK's Avatar
    April 2009
    3,061 Posts
    Predictions are that the end of this year, gas prices will end up as $7 maybe higher.

  17. Post #17
    Gold Member
    Dennab
    October 2008
    7,561 Posts
    Oh look its a trend.

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  18. Post #18
    FlapadarV2's Avatar
    December 2010
    1,802 Posts
    A gallon of petrol costs us $10.95, deal with it.
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  19. Post #19
    I have a raging boner right now
    Mr.Campin's Avatar
    August 2010
    340 Posts
    It's roughly about £1.30 for a liter of petroleum.
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  20. Post #20
    Gold Member
    zombini's Avatar
    November 2010
    4,350 Posts
    It's roughly about £1.30 for a liter of petroleum.
    A Gallon is multiple liters though.
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  21. Post #21
    Gold Member
    matt.ant's Avatar
    September 2006
    4,520 Posts
    Britain's is high because of tax, it could be as low as 40p a litre without tax, it's not to do with the strength of the pound

  22. Post #22
    furious_d's Avatar
    October 2007
    692 Posts
    Time to buy a bike

  23. Post #23
    Caesar's Avatar
    November 2010
    652 Posts
    It's heading for 1.50 Euro in Ireland. Just a few years ago it wasn't even a Euro.

  24. Post #24
    Zah
    Zah's Avatar
    July 2010
    299 Posts
    Small country, small population, jobs are packed into big centers called cities, not everyone lives in the city and maybe your city doesn't have jobs for you so you have to drive to another city daily to get to work.

    Hell, I had to take a 30-minute drive 40km drive twice a week to another city for my work placement period in school.
    Which isn't very far at all. I do more than that daily.
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  25. Post #25
    bull3tmagn3t's Avatar
    August 2008
    1,454 Posts
    It's making our dollar stronger than the US dollar though, which is good if you want to buy shit online
    And only online, in Canada, prices are still higher for some products (and only in stores). I don't have source but I heard on the radio that a baby carriage somewhere in Canada was $700, and the identical product in the U.S. was $200.

  26. Post #26
    Gold Member
    Dennab
    October 2008
    7,561 Posts
    Also the reason Europeans pay exorbitant amount of money for gas is because of high taxes on gas.

    We don't have those taxes, so its cheaper. For example, gas is cheaper here in Florida as compared to Georgia because we have lower taxes than Georgia.

  27. Post #27
    Huge Faggot #2
    GoldenGnome's Avatar
    November 2007
    5,149 Posts
    It's already at ~4 dollars at Hess in my town, closer to $5 than $4 if I'm not mistaken.

  28. Post #28
    Gold Member
    Zeke129's Avatar
    July 2007
    41,752 Posts
    And only online, in Canada, prices are still higher for some products (and only in stores). I don't have source but I heard on the radio that a baby carriage somewhere in Canada was $700, and the identical product in the U.S. was $200.
    When I worked in a dairy I remember an American talking about how the Velveeta cheese (tastes like shit but I digress) costs like 2 dollars back home but 14 here

  29. Post #29
    Gold Member
    JDK721's Avatar
    July 2006
    7,982 Posts
    When I worked in a dairy I remember an American talking about how the Velveeta cheese (tastes like shit but I digress) costs like 2 dollars back home but 14 here
    as an american who has eaten velveeta plenty of times, I'd have to say your observation that it tastes like shit is fairly accurate
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  30. Post #30
    I like to constantly remind everyone that I do illegal drugs. I squeeze it into all posts.
    Dennab
    October 2006
    4,044 Posts
    as an american who has eaten velveeta plenty of times, I'd have to say your observation that it tastes like shit is fairly accurate
    Velveeta isn't even real cheese, it's like made out of newspaper or something.

  31. Post #31
    crackberry's Avatar
    July 2009
    2,424 Posts
    Also America has more suburbs than Europe. Suburbs are more of an American Thing.

  32. Post #32
    Gold Member
    Acolyt3's Avatar
    September 2006
    1,733 Posts
    Right now prices for gas in Norway is equal to 9 dollars per gallon. And it's going higher.

  33. Post #33
    I'M A SHAAARK!
    Lambeth's Avatar
    October 2009
    14,832 Posts
    Also the reason Europeans pay exorbitant amount of money for gas is because of high taxes on gas.

    We don't have those taxes, so its cheaper. For example, gas is cheaper here in Florida as compared to Georgia because we have lower taxes than Georgia.
    Pretty sure the gas companies get subsidies too.

  34. Post #34
    Gold Member
    Van-man's Avatar
    August 2009
    15,159 Posts
    I should probably start to import shit from the US then.