Average U.S. Gas Prices May Remain Low this Winter ...




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Former oil exec: $5-a-gallon gas on the way - USA Today

Jan 20, 2015 - A former oil exec says higher gas prices are coming soon, and ... attention in 2010 when he predicted that average U.S. gasoline prices would soar to $5 ... "The next round of high prices is likely to start later this year, as crude ...

Hi Member's, what do you think ? Will gas stay low ?, or do you think it will go way up again ?

Are you driving more now that the prices are low ? or just saving some $'s.

Post your comments of this topic `OK > Thanks

 

Low oil prices as much pain as gain for economy

USA TODAY 5:19 p.m. EST February 6, 2016

Low gas prices haven't provided the lift to consumer spending that economists anticipated.(Photo: Spencer Platt, Getty Images)




Low oil prices have not been the economic boon analysts expected, with sharp investment cutbacks by crude producers offsetting the positive impact of cheap gasoline on consumer spending.

Economists have varying views of the net effects of the oil crash in the US, but several research firms consider it a wash or slight negative, while others say it’s been an unmitigated drag on growth.

The gloom pervading the industry has intensified in recent weeks with each drip of bad news about major oil companies’ capital spending cuts , layoffs and financial losses spreading to the broader stock market and global economy. Oil companies have cut 232,000 jobs the past 14 months, according to oil producer Continental Resources, which tracks layoffs. Such losses hurt consumer spending.

The U.S. benchmark oil price has plunged about 70% since summer 2014. Since millions of consumers are typically more likely than corporations to spend their extra cash, economists reckoned oil’s skid would be an overall bonanza for the economy.

But the size and duration of the price decline has hurt oil producers more than it has helped consumers, analysts say. The number of oil rigs in the U.S. fell about 50% last year, resulting in a $70 billion drop in investment, says economist Paul Ashworth of Capital Economics. That, he says, trimmed U.S. economic growth by nearly half a percentage point to 2.4%.

A less tangible toll has come from tumbling energy company profits that helped drag down the market and spread fears of bankruptcies, says economist Joe LaVorgna of Deutsche Bank. He estimates there’s a 40% chance of a recession this year , largely because of oil’s downturn.

Consumers, meanwhile, have saved an additional $120 billion since mid-2014, suggesting they’ve socked away virtually all of the $100 billion windfall they reaped at the pump last year, Ashworth says.

“They haven’t spent a damn dime of it,” he says.

Ashworth says many Americans likely didn’t believe the low prices would last. Jesse Edgerton of JPMorgan Chase partly attributes the disappointing outlays to consumers’ lingering postrecession caution.

But both he and economist Mark Zandi of Moody’s Analytics disagree that Americans banked nearly all their pump savings. Zandi notes the personal savings rate held steady last year at about 5.4% while incomes grew, indicating Americans saved more from fatter paychecks while spending much of their gas windfall. Consumer spending grew a healthy 3.1% in 2015.
Edgerton says monthly consumption patterns indicate households spent much of their gas money from March to May before pulling back. A separate analysis of Chase credit card purchases by the firm shows Americans spent about 80% of their gas dividend.

The researchers conclude stronger consumption due to cheap oil added 0.2% to 0.6% to economic growth last year. But since the decline in investment subtracted half a percentage point, it was roughly a wash for the economy.

The hit to capital budgets is likely to be smaller this year, and so JPMorgan figures cheap crude will be a modest net positive for growth.

 

Gas Price in my area of Florida 2/7/16

Chevron
844 N Banana River Dr & Morningside Dr
Merritt Island, FL32952

Regular1.649Sun 7AM
Premium2.269Sat 9AM

 

well, i do hope that it stays low as possible atleast for the car show season, my job also strives when gas and oil prices are high, seeing as though gas and oil was low 2015, we did not get a profit sharing check, icant complain, but i do hope that the gas prices stay low, i hope the next president (not Trump) will keep up, and do good as obama has done

 

It's nice, now if only premium would come down in my area. $1.68 for regular and $2.31 for premium. The gap is ridiculous

 

Nice research BBM, I can't help but not feel to bad for all the oil people. Guess they may have to sell one of their 5 yachts, probably the one in St. Croix or the Caymans.

I hope these fuel prices stay down, my job related truck just guzzles fuel. Went from about $500 a month to about $250. Really adds to the jobs costs and it's not recoverable as the competitive bidding tends to keep job bids down, not a lot of wiggle room for incidentals.

Some stations here are $1.59 then with my AAA 4cent discount at the Maverick Gas stations I'm filling my truck up at $1.55 gal. Now that's cool and welcomed to me.

 

Thanks `Greg, I'm thankful that you appreciate my efforts to contribute to the MCF.

I hope the price stays low or reasonable, but it is an election year Thanks for your reply & how it is for you....Yes, it sure can make a big difference in business & projected estimates. I know it makes a been difference in shipping cost...

 

Currently, Michigan's average is $1.45/gal, Detroit's average is $1.44 and the lowest in SE MI is $1.15. I got regular the other day for $1.39.

 

Hi `Matt, enjoy the low price while you can I don't think it will last It's good for many & also bad for others...I think things will change in time & after the general elections. Some of my stocks are down now because of the low prices.

Do you put high test in your S.S> ?

Thanks for your post

 

It is killing my stock portfolio

There has got to be a happy medium