I live in the Los Angeles area, state of California and I filled up my tank on Monday. I paid $4.37 a gallon. The price today at the same gas station was $4.57. I must add that this is the cheapest gas station I have found. They are expecting the price of oil per barrel to reach $200 before year-end. That would cause our gas price to jump to $7 per gallon before year-end. YIKES! Thank God I don't work far from home. Although, I am unfortunately not close enough to ride my bicycle or else I would.
Many people in Los Angeles have begun researching car-pooling and all forms of public transportation. It's starting to get quite desparate out here in Los Angeles because many people live out in suburbia and commute into the city where the jobs are. Everybody is being FORCED to downsize their mode of transportation that will give them greater miles per gallon. I know everybody is going to resentfully accept the coming changes. The good news out of this OIL GREED is that the massive increase WILL CAUSE all of us to DEMAND an alternative means of heating our homes and fueling our vehicles that will be cost effecient. WE will turn it around for the GREATER good!
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MoneyNews - Street Talk
Thursday, May 29, 2008
You think Goldman Sachs was reaching when it said oil could spike to $200? Try Louise Yamada on for size.
The former Citigroup analyst sees oil going to $450 inside a decade.
Based upon fundamental demand and technical market factors, Yamada says much higher oil just makes sense.
"If the present rhymes with history, oil prices might be expected to advance significantly ($253 to even above $453) over the decade ahead,” she wrote in a report to clients.
Yamada is managing director of Louise Yamada Technical Research Advisors, a firm she founded in October 2005. Prior to that, she spent more than two decades at Smith Barney, where she was the top-ranked market technician for four years.
Population of “six billion…and rising to nine billion, with greater and growing energy demands (electricity for technology, air conditioning, etc.) than ever before,” leads her to believe demand will continue to outweigh supply in the oil market.
Current output of oil worldwide is expected to rise to 116 million barrels per day (bpd) by 2030 from 86 million bpd, according to the International Energy Agency.
Yamada has been right on long-term market calls before.
From a technical perspective, she relies on historical trading patterns and calculates a gain of more than 1,000 percent from the 2004 breakout point of $40 a barrel. This provides “an outstanding (and astounding) target of $452.92 per barrel!” she warns.
Besides the imbalance in supply and demand, the dollar is also contributing to higher oil prices, in Yamada’s opinion. She highlighted Chevron, Anadarko Petroleum, and Halliburton in recent comments.
Consistent with this analysis, she also likes agricultural commodities and food stocks, thinking inflation will increase and higher prices will lead to greater profits for producers and processors. In particular, smaller stocks are more likely to outperform, she writes.
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