Today in the Newsroom, we're discussing why gas prices have been so high - and why analysts are saying 2012 could smash records again.
Last year brought the highest annual average gas price in U.S. history.
Now, analysts are saying get set for a national average over $4 - with some U.S. residents potentially shelling out nearly $5 a gallon.
I'll be showing you an interactive map from gasbuddy.com that can help you track down cheaper gas in your area.
And here's a site from the U.S. government aimed at helping you save as well.
Which sites do you use? Post below, or join our discussions at Facebook or Twitter.
Get ready folks. Wall Street speculators to hoard oil shipments driving the price of gas to over 4 bucks a gallon by summer. Thanks Wall Street!
Trading practices acerbate the cost of commodities including oil and gasoline. The investment community is not placing enough emphasis on the fact that some economies such as China are beginning to retract, the European debt crisis, etc. Over the last 2 years, commodtity traders have also ignored news regarding the increased cost of storage facilities for oil and problems tanker fleets have had due to slowing demand. I also question whether or not large organizations trading commodities unduly influence trades (e.g. Investment banks and hedge funds) and interests the pundits have in specific commodities when recommending the purchasing of them. This sounds a lot like 2007 again just before the economy nearly collapsed when the pundits predicted soaring oil prices. I agree that there is pressure on oil, but I believe we need to again bring the supply and demand equation more into commodity trading practices - currently wild speculation has too much influence to the detriment of the majority. Current practices acerbate inflationary pressures on food and energy which cripple the middle class and poor while lining the pockets of a few. We need to eliminate futures trading and only permit the ability of entities or individuals to trade commodities if they can take delivery within 30 days. By the way, when is someone from the media going to take a hard look at the current commodity trading practices?
Can some answer my question on why we can not drill for our own oil in the U.S mid west ! there is reported that there is more oil in our own Country than there is any where in the World ! any advise that anyone can give me is much appriceated , thanks Mike , Cincinnati , Ohio
Much needed story to get the national conversation off of the politics in the debates and the President's inept ability to lead. You did overlook one troubling area I hope you will bring attention to because I know most Americans are unaware of it. The leading export product of the U.S. is now fuel, in all of its forms. We are exporting record levels of gasoline, heating oil, aviation fuel, and natural gas at a time when our nation is experiencing a crunch in our economy.
It might be helpful to educate everyone on how the price of gasoline effects every aspect of our life in the U.S. Groceries cost more, medicine costs rise, raw and finished goods increase in price, and the amount of disposible income drops dramatically for most people.
I work in the lending industry with community banks, and loan demand dropped over 60% starting in the spring of 2011. Numerous surveys conducted through 2011 to determine why job creation and economic expansion were anemic cited low or no demand for products and services of small businesses. This correlates to the shrinkage of disposable income in most families.
My hope is you will take a leading role in turning the national debate on fixing our economy by stabilizing our energy costs. Congress must get the pressure to act on this because most are beholding to the oil industry for money to stay in office. It would be good to have a research team uncover how many throughout Congress get money from the oil companies and the groups that protect the speculators. The U.S. needs to stop the speculators trading up the oil contracts and put the CFTC back in charge of the markets along with restoring oil trading back to the NYMEX.
The effects of this economic scenario will drive the middle class into poverty, food stamps and other assistance will escalate to feed more Americans than even during the Great Depression of 1930-1936.
I encourage you to take this story to the next evel and wake America up!
I tried to post a comment earlier but I guess it was rejected. None of the financial pundits have discussed issues that tanker fleets are having due ot lower demand. In addition, news regarding the high cost of oil storage facilities due to lower demand has been ignored by the pundits over the past 2 years as well. Why isn't the fact that the pipeline reversal last year was due to an oil glut in the midwest discussed? Something is amiss with comoodities trading and the way we accept thoughts from "financial experts" without checking out their interests in the commodities they are pushing up! It is time someone takes a hard look at futures and commodities trading.
I concur with you thoughts; this issue must be discussed during the current election cycle. Commodity trading practices in general are hurting the poor and middle class and pose a grave risk to our economy.
Why do we even allow oil futers or any other speculators?
While I appreciated Josh Lev's story, no one ever seems to talk about who's getting rich every time gas prices take a jump because Libya's in turmoil, even though we get almost no oil from Libya, and the Iranians threaten to blockade the Straits of Hormuz. It's not a problem of supply and demand - there's more than enough oil. The truckers aren't getting rich, neither are the station owners. Who's getting all this money? Who are the speculators who we're making wealthy? Won't someone at CNN follow the money and tell us where it's going?
Google the "Global Oil Scam" by Phil Davis. Purchase electric cars and solar panels.
Unless our economy is in recession, gas prices will go up. Look at the bigger picture. Look beyond 2012, look at 2020 for instance. Global oil production will be in decline. There is nothing we can do to reverse that. We can drill every square mile of the US, but the additional oil will not even COME CLOSE to offsetting the declining production in the mature giant wells like Cantarell in Mexico or Gwahar in Saudi Arabia. Get used to $5, $8, $10 dollar oil- if you research it, you'll understand that's what the future holds.
I live in Montreal, gas is sold by the liter here, I just paid $1.39 a liter which would convert to $5.59 for a US gallon. I agree with the other comments, it's all politics, why should we be paying so much when we have all the oil we need right here in North America. How about letting OPEC pump itself dry and then we can use our oil. The oil companies won't just close up shop once there is no oil left, there will be other sources of energy to replace oil, but first there is a lot more money to rake in.
Lock and load boys and girls ...
How come no one is reporting more on the fact, the we export thousands of barrels of our oil to other countries. Fuel is Americas #1 export. It's a win win for the oil companies. they charge us more per gallon to drive up their profits the sell oil they drill here to other countries, like China and Russia and have another revenue stream for even more profit.
STOP EXPORTING OUR OIL NOW! ! ! ! ! ! !
The advantage oil companies have by shipping oil or refined fuel over seas as they are doing now is:
In the 1950's the State Department allowed U.S. based oil companies to reclassify the royalties they are charged by foreigngovernments as taxes. Those can then be deducted dollar-for-dollar from their domestic tax bill.
They should be changed back to taxable royalties! Then they will stop shipping so much overseas!
Oil speculators have been fleecing us for years buying so much "paper oil" that they can actually raise oil prices artificially and do. They can hold futures contracts on a million barrels of oil in a desk drawer; a million barrels of physical oil requires a container the size of 63 Olympic swimming pools. A barrel of oil may be traded on paper 20 times, with the price raising each time before the final buyer takes delivery.
A simple solution to lower gas prices, caused this time by speculation (demand is at a 15 year low and supply is high) introduce legislation that would make any speculator who bids on oil actually take delivery of the barrels. If Congress would pass this bill, the speculators would be forced out of the oil trading industryand gas prices would drop like a ROCK!!
A bill was introduced a few years ago to do this but got no where.
Why? Oil companies have congress in their pocket!!!
if using the distance from a gas station to refineries is a component of why gas cost what it does in any given state then California should have the lowest or close to the lowest in cost. We have multiple refineries from the north to the sout of the state, yet we have the most expensive.
Now please look into the number of these refineries are off line for "maintenance" at this time when gas is going through the roof.
Just have to say Terry your post above is right on the money. Get rid of the speculators and yes gas prices will drop like a lead balloon. But our elected bodies federal and state plus those who are running for office this year are in the pockets of the oil companies.
Very smart move of Obama saying No to keystone pipeline. America really should NOT get oil from Canada. Let Canada ship their oil to Asia. America can get their oil from those great middle eastern producers, like IRAN!!! HAHAHAHHA what a joke. Oil is going to hit $140 a barrel and USA and Europe will go even deeper into Economic Chaos!! Lets all buy houses in Arizona: they will be $5000 next.
I love it!!
Montgomery is awesome!!
Now I get it.... Obama wants to repeal the oil and gas subsidies, the $20 Billion. Oil companies are not happy and are gouging us so that Obama can lose.
Click here to access transcripts from recent shows.
Get every new post delivered to your Inbox.
Join 21,394 other followers