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For the first time in several years, $1.99 gasoline (standard 87-octane) is available in the NRV (New River Valley). The Eagle Express (Riner, Rt.8) was selling brand-name gasoline (Shell) for less than the $2 barrier on Friday evening, that many have hoped for, including one interviewee from an EverythingNRV article, from last week, that said that '1' was what he wanted (referring to $1 gasoline). Within the immediate NRV area, the $1.99 rate is one of the lowest prices available. Major retailers within most of the Christiansburg and I-81 corridors are at least a dime higher, per gallon. It is expected that many may lower their price to less than $2.00 on Saturday.
Gas war? Not likely. Some older folks may know of times when stations competed for business, via pricing. But, within this unpredictable national scenario, it is not 'real' to expect competitiveness, via pricing. There's too few distributors, and many obstacles. Only one hurricane, or one broken routing system could immediately affect pricing.
Is the lower prices if fuel good for America? Will consumers return to more wasteful mannerisms? Will homes have sufficient heat, this winter (helped by lower prices)? At least, those that heat their homes, using lesser-refined petroleum, may benefit. Maybe they won't run out of fuel; maybe they can feed the children. Pneumonia escalation may be averted, let alone, general comfort-levels may be enhanced. Medical costs might be lowered, as cold-temperature related illnesses may retreat.
According to the AAA (American Automobile Association), the nationwide average price of gasoline is higher than in the NRV, by about .30 cents.
However, crude-oil 'futures' (those 'betting' on a rise in price) rose ½ percent today, implying that, perhaps, pricing 'bottoming-out' is in-place. One must remember that crude-oil refining time-lines do not immediately affect consumers. Supply and demand 'rule.' Speculators are becoming very powerful, virtually controlling 'supply and demand.' Without the true supply/demand factor in-place, consumers are 'at the hand' of gamblers.
Investors are predicting much higher (about 10%) prices, within one year, via 'futures' markets.
OPEC (Organization of Petroleum Producing Countries) has vowed, at their recent meeting, to keep crude prices at $80.00, via lowering production. Currently, prices have lowered to just over $60.00 per barrel. However, some of the OPEC exporters, which happen to be USA allies, have not produced data that would confirm their agreement to lower exports.
No one really knows what may happen within the US economy, somewhat driven by global markets and demand. If anyone really knew, they would be admired. At least the newly-elected President, Barack Obama, has promised that oil companies will either explore leases on government land, or lose their leases. Pristine areas, such as those within the Alaskan Wilderness refuge area, will be spared. However, there's about ten weeks before the swearing-in of the newly-elected President.
Perhaps the current administration may become more pro-active, rising above the 'lame-duck' status. The Commander in Chief, President Bush, will work to help Americans overcome several obstacles that they are facing. He needs Senate and Congressional support. Every minute of every day must be directed toward positive benefits for citizens.
Unemployment in the USA is at a fourteen-year high; the US economy is on 'shaky' ground; home-sales were lower than predicted, in the last month. 'Middle-Class' Americans have known that the USA IS within a recession (prices rising more quickly than wages, for a good while). As of late, it has been 'officially announced,' to those that 'are in the know,' via reading the news about investigations of criminals with financial institutions, for instance.
Credit expenditures, especially those via credit-cards, have dramatically lowered. Some of the lower expenditures are by choice, as others are lowered due to cancellation of credit and/or lowering of credit-lines, even to those with 'perfect' credit status. There IS a 'credit-crunch.'
Holiday spending, often over 50% of retailers' yearly gross-sales, is expected to drop, as have recent receipts. 'Black Friday,' the once per-year special offerings by many retailers, is happily awaited by many. It may be a day that some have 'saved' for, skewing sales barometers. However, many fear the day, if they participate. Traffic-jams, fights, fire-code violations, and other unsafe aspects, keep many folks in the 'home-zone,' because they are not willing to take the risks. Others do not want to camp-out overnight, just to 'please' Santa Claus, as they dread possible disappointment for their children, for instance.
Precious metals, often considered bastions of preservation of wealth, have declined. Non-precious metal prices (copper, aluminum, and other) have retreated slightly, after record high-prices.However, the current cost of most metals is still at very high rates; higher in growth valuation than most stocks. As many know, due to record-setting lows of auto sales in the USA, even current-conducting precious metals, often used in military and other high-tech manufacturing, certain commodities are lessening in demand.
Global demand has declined for several commodites, including crude-oil. It seems that no one really knows whether emerging economies, such as China and parts of South America, can continue to grow, without the success of the USA, and inherit demand for imports.
Global effort needs to be orchestrated and coordinated, stopping child/slave labor, as well as implementing environmentally 'safe' manufacturing techniques. Even within the USA, it is recognized that 'clean' coal will take more research and several years, lto lower CO2 emissions to 'acceptable' levels. Coal is 'good' for America, being used for over 50% of electricity production.
Fuel prices, retail sales, home sales, unemployment rates, prices of metals . . . they are entwined, regarding the 'health' of the USA and it's citizens. Let's hope that there will be moderation of several aspects, and that living-wage employment may become more accessible.
Everyone needs to monitor their resources, work as hard as they can, be frugal, and, while not expecting the USA government to 'rule' their lives, at least expect fairness in enforcement of anti price-gouging and other atrocities that occasionally occur. Consumers, beware. Citizens, beware. No government can properly manage individual lives. However, governments may enhance the livelihoods/opportunities of it's citizens.
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