[Chuckmak]

$this->bbcode_second_pass_quote('Heineken', 'A')s usual, most of us are being proven right, and most of the rest of the world proven wrong.

That's what scares me.

It scares me that we are right, and are likely to go on being right, not just about oil costs but all the rest of it.

[SILENTTODD]

$this->bbcode_second_pass_quote('Fishman', 'N')ah just leave it to the "feee market" to sort out. Which often ends with things far nastier than closed gas stations you know oh those nasty type things with people on the street wanting to chop heads off.

No bailouts for the banks either. In fact "let them eat cake" or rather their bogus fractional dollars

[Heineken]

Agree with everything you said, Todd, except I do think there are supply constraints relative to demand, and that the friction between the two is inevitably contributing to the runup.

Never forget, the easy half of the oil is gone; what's left is the harder half, much of which the producers will want to keep for themselves and their "booming" economies.

Think what that means for the price of an imported commodity on which the US depends so utterly!

The doo-doo has never been so deep.

[Niagara]

$5.30/gal predicted in Canada in a few months ($1.40/litre) according to CTV, a major news network

Link

$this->bbcode_second_pass_quote('', 'G')as could go up to $1.40 a litre within months

The Canadian Press

CALGARY — Gasoline prices in Canada could rise to about $1.40 a litre in a few months if oil prices stay at current record levels and demand picks up for the summer driving season, oil industry observers say.

[Zardoz]

$this->bbcode_second_pass_quote('Heineken', 'A')s usual, most of us are being proven right, and most of the rest of the world proven wrong.

That's what scares me.

It scares me that we are right, and are likely to go on being right, not just about oil costs but all the rest of it.

[Heineken]

It has been very much a school for me, Zardoz. A sprawling, octopus-like, electronic mentor, even.

The great thing about a place like PO.com is that you can be teacher and student at the same time.

There is a cross to bear in being so peculiarly well-informed about what's really happening, though. It's the antonym of "ignorance is bliss."

[Revi]

I think Peak Oil is a lens to see the truth about what is happening in the world. I have to say that it is a lot less frightening to me to know what's going on then to be in the dark about something.

$107 is a price that allows oil to keep flowing out of the ground. It allows a certain class of people to continue their lifestyle, while others are priced out.

This is the end of the car culture for a lot of people, and the end of a lot of things we took for granted. We are used to hopping in our cars and going wherever we want.

We never used to think about the price of heating oil. It just showed up, and we paid the bill out of our paychecks. Now we have to budget it every year.

Next year will be tough. This year we are paying $2.33 a gallon and I don't think we'll get it for much less than $4 a gallon when it comes time to pre-buy.

I'm cutting a lot of wood for next winter.

I have a feeling that the next class that is priced out of the market is us, the working class.

[Heineken]

$4+ heating oil is one thing, but $4+ gasoline (and $5+ diesel)?

How does the US continue business as usual?

It doesn't. It can't. It won't.

[yesplease]

The dollar can only drop so far.

[emersonbiggins]

$this->bbcode_second_pass_quote('DantesPeak', '
')No doubt the falling value of the dollar and the growing desire of oil exporters to price in other than dollars has also contriuted to the current price surge.

[DantesPeak]

$this->bbcode_second_pass_quote('emersonbiggins', '')$this->bbcode_second_pass_quote('DantesPeak', '
')No doubt the falling value of the dollar and the growing desire of oil exporters to price in other than dollars has also contriuted to the current price surge.

[dissident]

Given the previous pattern there will be some silly announcement about US oil stocks being above normal and the price will drop by $20. Of course, reality will drive it back up.

I find it hard to believe that Bernanke's decision to drop the interest rate would devalue the dollar so much in such a short period of time. The exchange rate between the dollar and the euro went up from 1.40 to 1.53 in the last 120 days. That's just over a 9% increase while oil has gone up by twice as much.

[jdmartin]

$this->bbcode_second_pass_quote('dissident', 'G')iven the previous pattern there will be some silly announcement about US oil stocks being above normal and the price will drop by $20. Of course, reality will drive it back up.

I find it hard to believe that Bernanke's decision to drop the interest rate would devalue the dollar so much in such a short period of time. The exchange rate between the dollar and the euro went up from 1.40 to 1.53 in the last 120 days. That's just over a 9% increase while oil has gone up by twice as much.

[yesplease]

Gold and other commodities have also gone up more than proportionally to the drop in the dollar compared to the rest for the world as perceived safe harbors. Whether they will be safe or not has yet to be seen.

[aflurry]

$this->bbcode_second_pass_quote('joeltrout', 'W')e now have speculation and hedge-fund managers.

[Last_Laff]

$this->bbcode_second_pass_quote('Heineken', 'A')s usual, most of us are being proven right, and most of the rest of the world proven wrong.

That's what scares me.

It scares me that we are right, and are likely to go on being right, not just about oil costs but all the rest of it.

[Schadenfreude]

Isn't this a case of the dollar dropping like a stone, people dumping dollars and much of that money finding its way to commodities? That, in conjunction with liquidation or avoidance of the RE market?

Pretty soon traders will realize that commodity markets markets have been overbought and there will be a sell-off. They've been acting as a very bumpy store of value so far.

[NeoLotus]

$this->bbcode_second_pass_quote('Heineken', 'A')s usual, most of us are being proven right, and most of the rest of the world proven wrong.

That's what scares me.

It scares me that we are right, and are likely to go on being right, not just about oil costs but all the rest of it.

[EnergyUnlimited]

$this->bbcode_second_pass_quote('Heineken', 'A')s usual, most of us are being proven right, and most of the rest of the world proven wrong.

That's what scares me.

It scares me that we are right, and are likely to go on being right, not just about oil costs but all the rest of it.

[Cid_Yama]

<i>I'm inclined to start thinking about "guerrilla" vegetable growing and really pushing on installing a permanent, year-round, with meat coolers, farmer's market.</i>

Dang, I've been thinking along the same lines. Across from the hospital is a graveled lot where local farmers sell produce out of the back of their trucks. Across the side street is a gas station/ convenience store that I've been thinking would make a great meat market to sell the local ranchers wares from.