$4 gas is here!

Low interest rates, the Fed's policies etc. "Weakness in the US dollar, which is causing everything to go up—including gas prices, food and stocks—is unlikely to go away soon as a selling frenzy hits the currency market.

The greenback is approaching pre-financial crisis lows and threatening to smash through its all-time low when measured against the world's predominant national currencies.

A combination of factors accounts for the weakness, with the Federal Reserve's easy-money policies, huge national debts and deficits and the consequential possibility of a debt downgrade because of the financial mess in Washington leading the way."
CNBC.com

If you remember, BO has raised the fee's for permits, has approved licenses to drill, but refuses to give the vital permits needed. (Just to name a few)

"If you remember, BO has raised the fee's for permits, has approved licenses to drill, but refuses to give the vital permits needed. (Just to name a few)"

Except in Brazil where bambam is willing and ready to buy their oil

And so again I ask...if supply constraints are the problem as the last 2 posters suggest then how come supply levels are the same when we were at $2.50 gas 1 year ago?

I hope my ability to discuss politics with others never devolves to the point where I have no option but to resort to mindless namecalling as a substitute for rational thought.

I grew up in a nation of immigrants, and was taught to respect that my fellow countrymen are often decendants of people who were lured to these shores by the promise it means to offer all, even those who have, on first hearing, what sounds like a silly name.

Speaker John Boehner prounces his last name differently than his German ancestors did. Here's hoping that he does such a smashing job as Speaker that his critics, left with nothing else to find fault with, are similarly forced to frequently point that out.

I heard we were supposed to be in a recovery. So, doesn't it follow that if the world economy is picking up and the gasoline supply stays the same that prices are going to increase? Just a concept....It's called supply AND demand.

That being said, I have no doubt that oil prices are also being driven by speculation and like gold is JAAB (Just another asset bubble). The problem with oil is that a major portion of the world market is controlled by a Cartel that isn't reacting to the higher prices by increasing supply. Any supply increases are helpful.

Something else that would be helpful would be to significanly increase margin requirements on commodities futures. There is no good reason for speculators to be able to leverage raw materials to the point of strangulating the world economy. If they think commodities are such a good investment, then they should put up the dough and buy commodities and store commodites and then sell commodites when the time is right. Instead, we are allowing leveraged paper purchases by wall street to control the real economy...just like the .dot com bust...just like the housing bubble...just like the last oil price spike.

The market will eventually crack though...either due to a collapse of demand or new sources of supply..but since demand for oil is fairly inelastic, it could take longer than we want and be more painful than we imagine.

By the way oil has been steadily increasing since January 09, from low $40's to $112 today. Reasons for the recent spike in no particular order

1) decline of US dollar
2) increased turbulance in the Middle East
3) increased demand
4) deceased supply as Libya as gone offline, production in the Gulf is off significantly with the govt showing no real interest in renewing.
5) lack of interest in the US in drilling it's own reserves

The fix for High Oil prices - Regulate the Speculators

Five ways the Government could make oil prices fall

A look at the trade-weighted value of the dollar for the past 16 years or so.

Maybe the anointed one is looking towards our future. By helping Brazil do more drilling and keeping us from doing any new drilling we be saving our oil for the future. So we may paying $5 this he believes is change we can believe in higher prices.

Well we did have cash for clunkers. And there was the Fed incentive of $7,500 to go green.

Terry