Saturday, May 19, 2007

$3 gas

Why I refuse to buy oil stocks, I'll never know. We can expect another record round of quarterly profits from Exxon and the rest to be announced in July. By industrial world standards it's still pretty cheap in the US. Most of Europe is paying $5 to $6 a gallon. The sudden rise in prices is sure to impact the rest of the economy as just about everything is impacted by the price of gasoline. The Bonddad Blog asks some good questions.
1.) We are at the beginning of the summer driving season. Will prices continue to increase throughout the summer?
2.) What will be the impact on consumer spending? We saw a terrible retail month in April. Wal-Mart posted their worst decline in 28 years. I have to think high gas prices were partially responsible. If prices continue to increase, will we continue to see a drop in consumer spending?


Northern_Girl said...

Funny you should post this today - as I just filled my pickup with $3.49/gallon gas yesterday and whined about it on my blog just this morning.

I saw a sign - much like what you posted today that read

Regular: LOL
Plus: OMG
Premium: WTF


Fred said...

I spent 50 bucks to fill up my tank today. Less money for the weekend.

Anonymous said...

WTF is right. Refineries are down at the begining of the summer. The government should investigate.

flourgirl said...

Maybe it's time to start riding my bicycle again. It only costs a buck to fill the tires with air.

D.B. Echo said...

When I first went to Ireland in 2002 I was surprised at how tiny the cars were - my Toyota Tercel was much bigger than most of the passenger vehicles, and even the trucks were small things. When I last went in 2006, I was surprised at how many large, American-style cars had entered the poulation. Apparently having $5-$6 gasoline isn't enough of a deterrent.

Some people will buy hybrids and small cars as prices rise, and SUV and gashog (what I call "Sheik's Delights") sales will drop off. And if the price of gas ever drops below. say $2.50 again, these sales will pick right back up.

PA progressive said...

"Why I refuse to buy oil stocks, I'll never know."

Because you're a moral and ethical person maybe???