15 Reasons For Gas To Hit $5 Per Gallon

1. Japan is boosting oil and gas imports as their nuclear program melts down

In the past few months, the tsunami and nuclear disaster in Japan have slowed the need for energy. But in the coming weeks, oil imports are set to surge as the rebuilding gets underway and industrial production ramps up to meet demand.

2. On April 28th, Russia put a 44% tariff on oil exports

The people in Russia and their leaders have pointed fingers at the evil “Wall Street market speculator” and “oil price gougers” as the scapegoats responsible for high gasoline prices.

The political solution was to institute price controls. It has worked as well as expected...

Domestic prices that were now below the cost to produce oil caused sellers of energy to export their wares out of the country so that they could get a higher price. This in turn led to shortages within Russia. Buses and trucks stopped running due to lack of gasoline.

The politicians reacted by supplying even more government. The export tariff was raised to 44% to encourage domestic supply. This plan has failed; the gasoline producers would still be selling at a loss.

They are now sitting on their gas and waiting for better days.

3. Rolling blackouts in China

China is attempting to stop inflation by setting low prices for oil. This has created rolling blackouts in key industrial provinces that will take half a percent off of GDP.

4. India is paying billions in subsidized prices

India is in a similar boat as China. The country imports 73% of their fuel. Inflation is inching towards the double digits.

Do they allow the fuel prices to float — and feel the inflation and suffer the corresponding riots... Or do they continue to spend billions they can’t afford to keep prices low?

5. Sudan rescue workers can't move food because they have no gasoline

In war-torn Sudan, a border village was attacked last weekend by the North. Doctors Without Borders and other aid workers can’t get in to move food and shelter, due to the lack of gasoline for the trucks.

6. The Mongolian stock market lost 30%

Mongolia imports the vast majority of its gasoline from Russia — or did before April 28th...

The stock market fell in the past month because miners can't run their gear without diesel. I was scheduled to speak at an investment conference in UB that may be canceled due to lack of transport.

That said, Mongolian-based oil companies are doing very well.

7. Kenya is rationing gasoline

Two weeks ago, I was in Kenya. Many gas stations didn’t have any more fuel to sell. The shortage lead the news for the entire week I was there.

The U.S. has an effective ban on offshore drilling. There have been no new offshore oil drilling permits issued by the Federal Government since the BP spill last summer.

8. Libya is in chaos

Our newest war in the Middle East has entered its fourth month. More infrastructure is destroyed daily.

9. Chavez nationalized failure

Venezuela oil production continues to slide due to corruption and poor management. From UPI:

State-run oil corporation PDVSA sacked half of the directors on its board after the energy giant's pension fund was found to have lost $453 million in a Ponzi scheme linked to an investor in Connecticut. It was the latest of financial woes to strike the troubled oil company. The fraud apparently took place in 2004 but was discovered only recently.

10. No nukes

Germany is halting all nuclear power production by 2020; seven older plants have already been closed.

Nuclear energy is now supplying 25% of Germany’s energy needs.

Despite what you hear out of the green party, the majority of this power will be replaced by oil or natural gas — not by wind and solar.

11. Global oil production is flat and falling

oil june 2

12. Exports are expected to decline

exports june 2

13. The U.S. dollar keeps falling

dollar june 2

14. The Saudis can’t help

A senior Saudi oil official recently said the Kingdom “expects oil production to hold steady at an average of 8.7 million barrels per day to 2015.”

Domestic Saudi oil demand is increasing 10% per year. So expect a net decline in exports from our “friend” in Arabia.

And the final reason that oil stocks are going up...

15. Energy stocks have found support


Save $0.75 Per gallon of gas with Fuel Direct

The Price Of Oil

Most people believe that the U.S. dollar is the currency of the world, but really it is oil. Without oil, the global economy that we have constructed simply could not function.

That is why it was so alarming when the price of oil went above $100 a barrel earlier this year for the first time since 2008. Virtually everyone agrees that if the price of oil stays high for an extended period of time it will have a highly negative impact on the world economy.

In particular, the U.S. economy is highly, highly dependent on cheap oil. This country is really spread out and we transport goods and services over vast distances. That is why the following facts are so alarming....
*The average price of a gallon of gasoline in the United States is now 75 cents higher than it was a year ago.

*In San Francisco, California, the average price of a gallon of gasoline is now $3.97.

*According to the Oil Price Information Service, U.S. drivers spent an average of $347 on gasoline during the month of February, which was 30 percent more than a year earlier.

*According to the U.S. Energy Department, the average U.S. household will spend approximately $700 more on gasoline in 2011 than it did during 2010.

Rising prices of gas at the pump can be a real budget killer. While we can't do anything about the world events affecting oil, we can take charge of our family budget. Learn how to save $0.40 to $0.90 per gallon of gas with XP3 from Fuel Direct!

Oil prices surge 6 percent as Libya protests mount

Oil prices soared to the highest level in more than two years as Libyan leader Moammar Gadhafi urged his supporters to attack protesters who are violently challenging his 42-year rule.

Only a small part of Libya's oil production appeared to be affected, though analysts fear that similar revolts will spread to OPEC heavyweights like Iran.

Benchmark West Texas Intermediate for April delivery jumped $5.71, or 6.4 percent, to settle at $95.42 per barrel on the New York Mercantile Exchange. Oil hasn't been that high since it settled at $97.92 on Oct. 1, 2008.

Retail gasoline prices in the U.S. held steady overnight at a national average of $3.171 per gallon.

Libya holds the most oil reserves in Africa and is the world's 15th-largest crude exporter at 1.2 million barrels per day, according to the Energy Information Administration. As the Libyan government cracked down on protesters, Western oil companies including Eni and Repsol-YPF temporarily suspended oil production in the country. BP has started evacuating workers.

As the unrest spreads throughout the middle east gas prices will continue to move higher. We may see $4-$5 per gallon at the pump by the end of the summer.

As prices move forward your only recourse to save your families budget is by using XP3 through Fuel Direct.

Turmoil in Egypt: The First Move Toward $150 Oil

Turmoil in Egypt: The First Move Toward $150 Oil

Crude just hit a two-year high, jumping above $92 a barrel amidst the political unrest in Egypt. But according to renowned energy expert Dr. Kent Moors, this is nothing. The oil market is about to explode. "Six of the leading indicators I use are accelerating." And $150 a barrel by June, he says, is a "done deal."

What does this mean at the gas pump? According to industry experts in the oil industry gas is on track to be at or over $4 per gallon this summer and possibly $5 per gallon by the end of the year.

So what can you do about it? Join Fuel Direct! The Average member is saving $0.77 per gallon at today's gas prices. That of course will increase as gas goes up!

What will be Your Story?

The State Of the Union

U.S. government strategies like the ones that President Barack Obama outlined in last night's State of the Union address virtually guarantee that we'll see $150-a-barrel oil - perhaps as soon as mid-summer. A price increase of that magnitude could result in $5 a gallon gasoline. But here's the thing ...

You don't have to be a victim! The average driver at today's gas prices ($3.19) is saving $0.77 per gallon As gas goes up the savings go up as well.

So we all have a choice, be a victim of the economy and let the high gas prices eat your budget up or join Fuel Direct and start saving on your next tank of gas today!