Might want to buy some stock in whatever company you think makes the most fuel-efficient cars.

The price of U.S. gasoline could hit the $6 mark if international sanctions are imposed on Iran and shut down the Strait of Hormuz, through which much of the world's oil is shipped, the Chicago Tribune reports, citing remarks made by IHS chief economist Nariman Behravesh at an event sponsored by the National Automobile Dealers Association and IHS.

Sudan, Syria and Yemen are among countries where there have been oil-supply disruptions, driving up the price of gas to its current levels. And, with 20 percent of the world's oil coming from the Persian Gulf and fears of Iran supply disruption, there's about a 20 percent chance gas prices will approach the $6 a gallon mark, and that could happen by early next year. According to Behravesh, such a jump could cause alt-fuel vehicle sales to spike and, with General Motors unlikely to be able to ramp up production of its Chevrolet Volt extended-range plug-in vehicle, Nissan Leaf battery-electric sales may surge.

Gas prices are a subject that elicit about as many opinions as presidential prospects. Earlier this month, USA Today quoted Patrick DeHaan, senior analyst for GasBuddy, saying that gas prices may have peaked at about $3.92 a gallon and would drop to $3.70 by the end of the month. U.S. drivers had been hoping that 2011 would've been the worst year for gas prices for a while, as average prices surged about 27 percent to more than $3.50 a gallon and hit the $4 mark last May.

This year, U.S. gas prices have jumped almost 60 cents a gallon to about $3.90 a gallon, according to AAA, and consumers are responding. Last month marked the third-consecutive monthly record when it came to fuel economy figures for new cars, whose gas mileage averaged 24.1 miles per gallon, according to the University of Michigan Transportation Research Institute (UMTRI). As a result, both the Volt and the Toyota Prius hybrid had record monthly U.S. sales.


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    • 1 Second Ago
  • 59 Comments
      DaveMart
      • 2 Years Ago
      Barring an attack on Iran, oil prices have likely peaked this year, with demand in the US, Europe, and even to an extent China weak. Saudi has been stockpiling oil to offset some of it's summer peak burn for air conditioning. It now uses around 30% of it's own oil, an amount which is rising fast, and is one of the major pressures on oil prices. That should prevent any later peak in oil this year, I would have guessed. This may be as high as the waves will go this year, but the tide is coming in, and peak prices have enormous pressures on them to increase year by year.
        brotherkenny4
        • 2 Years Ago
        @DaveMart
        I agree that we have probably seen the high for this year. In the US we know that when gas gets to $4.00 people actually change their habits. I doubt gas could ever sustain $4.50 for very long. That's just too high to maintain the market. Many other things become way more economical, not the least of which is electric vehicles. I seriously doubt Iran can have that big of an influence on the price of oil, at least for anything more than a short period of time. I suspect the producers know all of this. They neither want to promote electric cars or give the financial incentive to people to make investments in things like tar sands, or fischer-tropsch or biomass conversion. There are just too many things that are and will be competitive now and as the price of gas goes up the willingness of investors to step in and do alternatives is just too great. Although, $6.00 makes for an exciting headline.
          brotherkenny4
          • 2 Years Ago
          @brotherkenny4
          I should just mention that religious fanatics will cause suffering just for the sake of cruelty. Much the same as our religious fanatics, but I am not sure that will be the case of Iran. I think what they do is more than a ploy foisted on us by their clerics. I think they are more manipulative than religious. It's the old practical manipulation and control process of religion rather than the true fanatic suicide cult stuff off Afghanistan and the US.
          SNP
          • 2 Years Ago
          @brotherkenny4
          people actually dont change their habits because of a set price point. $4 wont change people's buying habit, nor would $6. It's more about how fast we get from $4-$6. Going forward, the crude markets will no longer matter much in US politics because our dependence on the fuel is dropping substantially. In the next 2-3yrs, automakers will have many hybrid/PHEV models to choose from. US economists are already changing the inflation adjustment calculations from CPI to chain CPI and the face value of these vehicles and gasoline prices wont matter as much. In the end, the US gets the last laugh. As long as there wont be another George bush as president for 2016, we should be fine.
      • 2 Years Ago
      It’s nice to take a vacation once in a while because this gives you physical and mental refreshment. I can still remember my unforgettable experience when I was in Bantayan Island. The place was indescribable. The surroundings were rare, pleasant to your soul.
        Dave D
        • 2 Years Ago
        non sequitur much? Or, are you spamming us and advertising that island?
      Nick
      • 2 Years Ago
      People just NEVER learn from history. If prices dipped below $3 for a few months, SUV sales would surge. On the other hand, those that bought a Prius, Volt or simply stayed with their old subcompact (which can get stellar mileage) wil hardly feel any difference at the pump.
      george costanza
      • 2 Years Ago
      it HAS to hit six bucks in the US or nobody has learned one goddamn thing. automakers will have to switch back to guzzlers costing them money... however BEFORE it comes close to six bucks either obama or mittens will start world war III to try to control the world's remaining oil reserves. either up and coming glutton china or russia which has a sh*(load of oil will start to see the big picture and defend their own turf from oil glutton empire US. probably at around five bucks some mysterious bs will magically happen and all americans will gleefully lap it up (like fictional wmds) and prob. mittens will start world war....of course big oil will still win even in war since wars are like free endless money for big oil to supply the other winner (defense cos.) (the REAL reason we are in iraq for a whole fu*(ing decade is to further enrich big oil). you know how much big oil doesnt give a sh*( about you? iran has already just this year accumulated 100 BILLION in its' sovereign wealth fund from 'high' oil prices. one reason they are high? Iran and our ALLY saudis JOINTLY colluded to ensure oil stays above $100. it was in the fU**ing news for god sakes!!!! it isnt a 'conspiracy'...people in the US just need to learn how to fu*(ing read and think for themselves. stop whining. grow up and realize there are seven other sh*tting eating drinking polluting nasty humans on this tiny rock. and realize what a horrible infantile example you are setting with your narcissistic petty actions (talking to your denialist radical right fringe wackjobs!). do you know WHY saudis and iran both together keep oil high? to keep their OWN populations from revolting/ with high gas petrostates can rain cash down on poor masses...except in US big oil tells you to go fu**( yourself. it needs to be nationalized. big oil will fight tooth and nail to prevent this from ever happening.
        Marco Polo
        • 2 Years Ago
        @george costanza
        @George Constanza Y'know apart from the fact that your posts are little more than unreadable tirades of abuse and incomprehensible nonsense, I can't help thinking that you really want to say something. But here's the thing, how about forgetting all the useless abuse, and try writing in short paragraphs. Not only does this make your opinions easier to read, but helps the reader understand what you are saying. Most ABG readers are fairly well educated, and nothing in your tirade is very new or original. Railing against 'big oil' (well big anything) is pointless. 'Big" exist because they supply an essential product that billions of people depend upon for economic well being. EV's are an important feature in preparing for a future where Oil will no longer be used as transport fuel. Larger issues involve the development of technologies that can generate energy that doesn't require damage to the environment but is still sustainable. Oil will always remain an important resource for other products. In fact, nearly our whole modern world is built from oil. It's very important that we all cease to waste Oil as a transport fuel. All that passion and energy you display, needs a focus ! . Pick just one realisable target that helps the environment, and concentrate on achieving a goal. In this way, you will turn frustration into enthusiasm.
        • 2 Years Ago
        @george costanza
        really sad Luddite ...
      Marco Polo
      • 2 Years Ago
      Oil price articles alway attract conspiracy theories! . The pump price of Oil (gasoline) is determined by many factors. Exploration, Extraction, Refining, Production, Transport costs, Royalties, commodity prices, Supply, Demand, Taxation, Disasters, Technical developments Currency fluctuations, and a host of other factors. International oil futures speculation, is not a significant factor! he U.S. Commodity Futures Trading Commission (CFTC) in conjunction with UK FSA and ICE Futures Europe, conducted a comprehensive study into the effects of speculation and concluded: The ITF found speculation does not cause significant changes in oil prices, and that supply and demand factors are the best explanation for crude oil price fluctuations. The report found that developing extraction and refining technology helped contain prices, while world economic expansion increased demand. The report further found that speculators had only marginal influence. Another Myth is that OPEC controls world Oil prices, and OPEC is responsible reason for high prices. OPEC was formed in 1960, to break the 1927 Red Line Agreement and 1928 Achnacarry Agreement that created a cartel of oil companies ! In 1973, OPEC broke the old cartel and for the next 12 years controlled the price of oil until in 1985, OPEC price controls collapsed, (after brief flirtation with netback pricing), the current market-linked pricing mechanism was institute. Since then, 16 new and aggressive oil companies have entered into competition with the old Oil companies. Often State owned, or financed, by new emerging industrial powers as India and the PRC. These companies are often willing to pay above the prices quoted by NCF, DBS, WTI, NYMEX, or ICE. Often these deals involve barter. PRC trades weapons and other sanction breaking products with Burma, Iran etc. Nothing to do with 'fungible' commodities. PRC's largest Oil company also manufactures weapons and is controlled by the PLA and CCP. Barter trading in oil occurs in Africa, Asia, old USSR independent states and Eastern Europe. Cuba trades Doctors, for Oil with Venezuela. About 27% of all bunker oil is sold outside system, ( often from old unseaworthy barges.) Conflict with Iran would affect the price of oil, but it wouldn't be the economic catastrophe destabilisation of Saudi Arabia would create. Or even the economic effects results of withdrawal, or loss, of 'Petro-dollar investment in US securities or Euro-bonds. In Western economies, especially the US, UK, France, etc governments are absolutely dependant of the huge tax revenues paid by the major oil companies, and even more so on the dividends that Oil companies generate to pay for Superannuation and Retirement funds. EV Technology certainly helps to reduce demand.
      kEiThZ
      • 2 Years Ago
      $6 if the Strait of Hormuz is closed? Ha! That's a fantasy right there. It'll be way more than $6 if this scenario comes to pass. You can't just do some straight line analysis to find a new price equilibrium. Unfortunately, the demand for oil doesn't work like that.
        Spec
        • 2 Years Ago
        @kEiThZ
        Yeah, I agree. I suspect the price would go higher. We could hit $6 based on tight sanctions that take Iran oil off the market and increased demand alone.
        Actionable Mango
        • 2 Years Ago
        @kEiThZ
        Iran cannot keep the Straight of Hormuz closed for long. If they indeed tried to close it, every country on Earth capable of attacking them would do so.
      2 Wheeled Menace
      • 2 Years Ago
      I pity you if you are not already prepared for $6/gallon gas. The cost of shipped goods will go up, and you can't get around that. But the pump is where it will hurt. Most folks did not learn their lesson in 2008. Oh well, here's to another summer of people whining about how expensive gas is, as i ride my eBike in bliss ;)
        EZEE
        • 2 Years Ago
        @2 Wheeled Menace
        The pump is where people pay attention to the pain, since it is direct. Most do not associate the rest of increased prices with energy costs.
      EZEE
      • 2 Years Ago
      The philosopher stood on the side of the hill, with tha various students and followers sitting below, in nervous anticipation of what he might say. And off in the distance, a dog barked. A student had bravely asked the philosopher, 'what is the meaning of life?' and the philosopher stroked his breard in quiet contemplation. He finally said, 'it has either meaning, or it does not.' The student said, 'what a load of crap.'
        Letstakeawalk
        • 2 Years Ago
        @EZEE
        Does the dog have fleas? That makes a difference in my opinion.
          Marco Polo
          • 2 Years Ago
          @Letstakeawalk
          @ Letstakeawalk We, and we alone have the right to this dog ! We must defend ourselves from these phiosophic intruders,! To arms brothers, for our faith and our dog! Signed, A bunch of Flea's As mad as hell, and not gonna take it anymore , Junkyard Mongrel Junkyard at the bottom of the hill
      Rick
      • 2 Years Ago
      $6 a gallon wish we had cheap gas prices like that in the UK
        Vlad
        • 2 Years Ago
        @Rick
        BTW, good point. You can have expensive gas and still live a life that's the envy of the most of the world.
          DaveMart
          • 2 Years Ago
          @Vlad
          Here in the UK around 60% of the price of petrol is tax, and so doesn't leave the country but pays for things like the health service instead of people getting a bill which will bankrupt them. Rising prices for an imported commodity are a very different matter. That just leads to a drop in standards of living.
      hodad66
      • 2 Years Ago
      Gas went up? Hard to tell driving my Volt...... ;-)
        floorman56
        • 2 Years Ago
        @hodad66
        Check your food prices ....
          Ford Future
          • 2 Years Ago
          @floorman56
          That's more caused by worldwide Global Warming Drought. http://droughtmonitor.unl.edu/ http://www.ncdc.noaa.gov/temp-and-precip/drought/nadm/nadm-maps.php
      Rick
      • 2 Years Ago
      We should crack $10 a gallon mark in the next few months in the UK
      Vlad
      • 2 Years Ago
      It doesn't matter at all if GM can make XX,XXX Volts a year, or not. The biggest driver behind our demand for gas isn't MPG of our cars, it's our habits. We live too far from work, we we ship our food too far, our life is in general too cheap-gas-centric. Habits die hard, but with enough economic pressure they do die. People will realize that carpooling makes sense. That combining trip makes sense. Bikes/public transport/smaller home closer to work - it all will suddenly become appealing with gas at $5 and $6 mark. Heck, already fuel-efficient vehicles are selling like never before. Already homes by metro didn't drop in price a single cent all through the real estate burst. Already there are more people on foot and on bikes (at least here in NoVA).
        • 2 Years Ago
        @Vlad
        spoken like a true dictator ...
        Spec
        • 2 Years Ago
        @Vlad
        Indeed. I'm a big supporter of EVs but putting good public transport systems in place is more important.
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