2006 recession/stagflation

[Andrew]

ok, my province's gas and other things is regulated which protects us most of the time from gas hikes.

But yesterday gas increased 10 cents per lite (first of the month)

And then today they put it up 24 cents to calculate the effects of katrina. They only look at prices twice a month. But now the market is so unstable they are doing it on a daily basis.

http://www.irac.pe.ca/newsreleases/documents/releases.asp?f=pet050901.asp

34 cent rise in 2 days!!@!!!!!! I bought 75 dollars worth yesterday thank god. Which means I just saved $30.

OMG recession is bound to happen.

Yesterday gas was 99.4 cents per litre and today it is $1.36 a litre. 27% increase. Even I will have to increase all my lawn prices.

holy shit. So angry at the world.

There will be inflation for sure.

I hope this doesn't mean an increase in tuition before school starts.

Any thoughts on the world going to hell?

[Gobalopper]

Umm there was just one of the biggest natural disasters of the last few decades... of course gas prices are going to go up. It isn't going to be permanent, there are just fuel supply issues now that will have to be worked out.

Things still go on. The world didn't end on 9/11 or after any of the other disasters and it won't this time. Just keep breathing and you'll be fine. :)

[Andrew]

But the price of gas was high before the natural disaster :(

And the gas output in US will not be fixed for months.

Breathing is hard to do.

Thank god I don't own/use a car. Especially since insurance rates will probably increase >50% like they did after 9/11.

My car insurance (I was under my parents name) was $1000 for a year, then they put it up to $1500 for no reason. And then they get huge end of the year profits. I don't see how it works.

EDIT

Sounds like there are possible gas shortages in the US?

[ps501]

I've seem a few outages in a few cities.  Nothing serious.  Gas in Chicago I saw at $3.86/gallon.  Kansas City 3.56, St Louis 3.75.  Pittsburg $3.88. Supposed to be over $4 in the next few days though; possibly reaching $5.  Just a month ago, prices averaged around $2.35-$2.50.

Curously there seems to be lower than normal levels in the southeast, possibly causing Delta airlines to go into Bankruptcy because of fuel issues.  (no real loss there. I can't stand that airline)

The fuel issues are many:

A) Speculative traders making money.  (and yes I was one of them, betting they would rise because of the hurricane)

B) Simple Supply and Demand issues.  With China and India increasing their need for fuel every year, and OPEC (I think this is correct) hasn't made a new well in almost 10 years, and each year that a well is open and pumping it produces less volume.  I believe that OPEC is currently at 100% of capacity.  So with tight supply, and increasing demand you have price increases.

C) Reducing refinement.  40% of the US refinaries are down now.  I believe the news reported that one of them will be back on-line in 2 weeks in limited production.

Now, why prices are rising around the world, in the short term is largely to do with #1.  In the long term #2.

[Andrew]

But this means that iflation will go much higher than normal and lower profits, which will screw the economy over in the short(1-2 years) term.

Gas has increased 63% since 1998 according to my data using average price from may-September for 1998 on PEI and with the price right now.

Guess the price for taking the taxi back from the bars will be going up a lot.

[Mahdi]

I'd like to point out that the jump is not all from Katrina.  It's actually being used as mroe of an excuse than anything else.  It was said three, four weeks ago gas would be over a dollar ten, near a dollar twenty by the end of august.  So, taking that into consideration, gas has only jumped ten-fifteen cents per liter due to Katrina, not the 30-40 cents they are claiming..

[Andrew]

Hmm. My province is in a panic about the price of gas going from $1.13 to $1.70(rumoured) a litre. Line ups at all gas stations.

Although IRAC made a statement about it only being a rumour and no price change(decision) has been made yet.

Although the price of gas will be going up by monday, no doubt about it.

And that fact that in houston there are tens of thousands of vehicles burning gas on the highway doing nothing and gas stations there are out of gas.

Hell, my mother sounded panicked about the rumours when I was talking on the phone.

http://www.cbc.ca/story/business/national/2005/09/22/Cda_inflation20050922.html

Interesting. PEI had an inflation rate of 3.2% in August.

And you can bet people are not getting paid 3.2% more in wages.

EDIT - seems the rumour originated from ontario, and pretty much everywheres freaked out. lineups at all gas stations etc.

EDIT -

Premier calls soaring gas prices probe

Great article about how everyone is freaking out about gas prices.

In Timmins, neighbours exchanged stories of $2 prices and it was enough for Francine Watson to act. She immediately jumped in her car and drove to join an already enormous line.

"I heard it could be going to $2.30 so I didn't want to take any chances," she said. "I just hope they don't run out of gas."

[Gobalopper]

Poor Francine... they might run out of gas! What would she do!?

[Mahdi]

Walk.

[Andrew]

Walking 10 kilometers is not very fun. And probably will not be happening when it is -30 degrees this winter.

My cousin yesterday waited 40 minutes in a lineup for gas.

Ahh, here's an island news article

Islanders race to the pumps

Four hours of unrelenting business, beginning at about 11 a.m., resulted in gas sales equivalent to the volume sold on average over a two-week period, he said.

Pump panic

The rumour of gas being $1.79 per litre was true for about 20 minutes, said Erica Brown, a Chatham, Ont., reporter.

She said one gas-station owner in Chatham responded to a rumour that the price of gas in the Sarnia-Windsor area was up to $2.10 per litre,

[Andrew]

Brace for high gasoline prices all summer

Hmm, looks like I'm gonna have to look over all my clients and see whether another price increase is imminent for them.

So gas goes up, cost of goods go up, inflation goes up, they increase interest rates to keep inflation low, costs more for people to loan money to purchase gas! Time to purchase oil company stocks to pay for your gas (you'd be paying yourself then :D)!

So far no recession or stagflation. Stock market is doing great. But it could crash/dip sometime with the housing bubble popping or US dollar collapsing.

Gas is $1.07 per litre on PEI now, it increased 8.5 cents April 1st.

Here's the average price of Gas on PEI:

Year Average Price per litre from May-September

1996 59.1

1997 59.74

1998 51.86

1999 52.18

2000 70.94

2001 73.98

2002 70.06

2003 71.68

2004 89.66

2005 97.02 <-not taking into effect September price explosion

2006    >1.07?

2005 was the first year I adjusted most prices to reflect VC(gas) increases. I'd hate to increase them all again, even if it is a small amount.

I preferred when gas was 50 cents a litre...

[Andrew]

Hmm, thought this would be the best thread

BP Shutting Down Large Alaska Oil Field

This oil field represents 8% of US production. I'd go fill up your vehicle with gas right now.

2006    >1.07?

Looking at my prediction or whatever it was... hahaha. May to September average will be around $1.15

Was anyone smart enough to jump in the natural resource stocks 2 years ago? You'd be rich $

XEG.TO ETF more than doubles in 2 years. Someone got super rich.

FYI stockcharts.com is a really great stock analyser. Hmm, now I'm looking at stocks I was looking at in February. Very interesting and fun :O.