Main page | May 11, 2008 - May 17, 2008 »

Gas jumps above $3.67, oil passes $126

NEW YORK -- Oil rose above $126 a barrel for the first time Friday, bringing its advance this week to nearly $10, as investors questioned whether a possible confrontation between the U.S. and Venezuela could cut exports from the OPEC member, according to the Associated Press.

Gas prices, meanwhile, rose above an average $3.67 a gallon at the pump, following oil's recent path higher.

Posted by Peter C. T. Elsworth  at 2:02 PM to Crude oil market , Gas prices | Permalink | Comments 0

Oil nears $126 per barrel ahead of US driving season

Oil prices neared $126 per barrel Friday on the eve of the U.S. driving season as a weakening U.S. dollar drove investors to snap up commodities, according to the Associated Press.

Light, sweet crude for June delivery rose to a record $125.98 a barrel in electronic trading on the New York Mercantile Exchange near midday before falling back to $125.75, up $2.06 on the day, by the afternoon in Europe.

On Thursday, the contract rose to a record close of $123.69 a barrel.

Posted by Peter C. T. Elsworth  at 9:43 AM to Crude oil market | Permalink | Comments 0

Gas costs deflate prices on used SUVs

High fuel prices are causing the value of used SUVs to plummet, often below what's listed in the buying guides many shoppers use to negotiate with dealers, according to USA Today.

As a result, some new-car buyers think they're getting cheated by dealers who are offering them little for their SUV trade-ins.

"The dealer is going to offer a price, and the customer is going to be ticked off," says Tom Webb, chief economist for Manheim, operators of auctions where car dealers buy their used-vehicle inventories. "The guidebooks have not caught up to the market," he says.

Posted by Peter C. T. Elsworth  at 9:39 AM to Auto industry | Permalink | Comments 0

Ford designs new child crash test dummy

DETROIT — Ford has redesigned the midsection of child-size crash-test dummies to help carmakers invent seat belts that could protect children against abdominal injuries, according to USA Today.

Ford is hoping the new dummy will become the international standard for child crash dummies, helping researchers better understand the forces that act on children's bellies in an accident.

Children ages 4 to 8, who typically no longer ride in booster seats, are 25 times more likely than younger children to sustain serious abdominal injuries.

Overall, fatality rates in the USA are on the decline, but abdominal injuries have become one of the most common for young children, and serious injuries can occur even in slow crashes.

Posted by Peter C. T. Elsworth  at 12:11 PM to Ford , Safety | Permalink | Comments 0

Gas prices jump nearly 3 cents to record, while oil pauses

NEW YORK -- Gas prices jumped nearly 3 cents overnight to a new national record of nearly $3.65 a gallon Thursday, while oil prices paused from their own climb to record highs and succumbed to mild profit-taking, according to the Associated Press.

At the pump, the average price of a gallon of regular gas nationwide rose 2.7 cents to a record $3.645, according to a survey of stations by AAA and the Oil Price Information Service. Diesel prices also rose, adding 0.9 cent to match a record national average of $4.251 a gallon.

Posted by Peter C. T. Elsworth  at 12:03 PM to Gas prices | Permalink | Comments 0

Backseat Driver: NASCAR has replaced horse racing

So we all dressed up last Sunday for a Kentucky Derby party and placed our bets based more on sentiment (the ladies favored the one filly Eight Belles) and semantics (Bob Black Jack was a favorite) than any knowledge of the horses.

And we drank mint julips and were amusing in a fragrant way. And after an hour or so, we watched the race and were delighted or disappointed depending on our level of interest and the extent of our bets.

And then we were horrified when Eight Belles, who came in second, had to be destroyed after collapsing with two broken ankles.

The accident highlights the trend in modern horseracing to produce horses than can bring in trophies for a limited time before being retired to the breeding sheds. Such an emphasis on speed per se has resulted in horses that are often inordinately fragile.

At the same time, public interest in horse racing has been declining for decades and for a very simple reason: Horses are not part of our everyday lives any more.

Before the automobile, our lives were intertwined with the horse. We all rode or drove/were driven in carriages/carts/wagons and so everyone was interested in horse racing. But just over 100 years ago, the horseless carriage made its appearance and now dominates our lives.

So it’s hardly surprising that as horse racing has slumped in popularity, interest in auto racing, especially NASCAR, Formula One and drag racing has soared. Let’s face it, NASCAR racing is basically a flow of traffic – and we can all identity with that – but at 180 mph.

And we’d all love to drive at 180 mph on our daily commutes!

To be sure, interest in horse racing was sparked by such great horses as Triple Crown winners Secretariat, Seattle Slew and Affirmed. But Affirmed was the last Triple Crown winner and that was back in 1978.

Every year, we are treated to breathless speculation about the Triple Crown as the winner of the Kentucky Derby moves on to the Preakness Stakes in Maryland and the Belmont Stakes in New York.

But just as interest can be sparked by great horses running great races, it can be turned off by horrible accidents such as the one that brought down Barbaro a couple of years ago when he shattered his leg at the Preakness and had to be destroyed after lengthy rehabilitation proved fruitless.

And the revolting spectacle of Eight Belles floundering on the ground with two broken front ankles is certainly not going to attract the casual fan who dresses up but once a year to have a flutter on the horses.

- Peter C.T. Elsworth

Posted by Peter C. T. Elsworth  at 11:51 AM to commentary | Permalink | Comments 0

Backseat Driver: Toyota's sales forecast is sobering

Reflecting the dismal state of the current auto market, Toyota is projecting its sales will be down 27 percent this year, according to the Associated Press.

That’s very sobering news for the auto industry.

As Detroit’s Big Three have struggled for years to retain market share, the Asian manufacturers – including Toyota, Honda, Nissan, Hyundai, Subaru – have been growing in reputation and sales.

Apart from being lumbered with millions and millions of dollars in healthcare and pension liabilities, the Big Three seemed incapable of coming up with designs that either excited or provided assurance of reliability.

Toyota and Honda in particular have been brilliant in building a franchise that now rests on very solid reputations for reliability which is, not surprisingly, what the vast majority of people want.

Now Toyota, which has been recently tussling with General Motors over who is the king of the castle in terms of sales, is predicting a serious downturn in sales and sees overall U.S. auto sales at about 14.7 million vehicles this year.

That’s way down from recent years and the company cited the faltering U.S. economy, high energy costs, a flat domestic market and the weak dollar for its woes.

Toyota’s announcement is very sobering given that it seems ideally placed with its fuel efficient Corolla and Prius hybrid in a world of soaring gas prices.

Certainly the company put on a brave face.

"We are facing a severe business environment," President Katsuaki Watanabe was quoted as saying. "Toyota considers this headwind as a valuable opportunity to turn it into a more flexible and stronger company."

Given that this is a superbly well run company, it is likely to emerge stronger and better positioned for the brave new world we are entering as developing economies start to roll – including the mega-ones in China and India – oil prices soar, misguided adventures such as George Bush’s War in Iraq keep Mideast politics raw and the global environment changes before our eyes.

But for the short term, the news is just more evidence of the big downturn in the U.S./world economy and right now there is no light at the end of the tunnel.

- Peter C.T. Elsworth

Posted by Peter C. T. Elsworth  at 11:07 AM to Toyota , commentary | Permalink | Comments 0

As fuel prices rise, some speedometer needles fall

ALBANY, N.Y. -- As other cars zipped by at 70 mph or more, Mike Papin and his wife, Joann, kept rolling along just below the 65 mph limit as they made their way from their winter home in Florida to a summer place in Vermont, according to the Associated Press.

They've typically done six or seven miles above the speed limit during the annual migration, but with gasoline prices roaring toward $4 a gallon nationally, Joann suggested they ease off the pedal during the 1,500-mile drive this year.

"I read somewhere that around 62 or 63 was the best speed to drive to make the most of your gas," she said.

Posted by Peter C. T. Elsworth  at 11:39 AM to Fuel economy | Permalink | Comments 0

Toyota raising prices on some models in US this month

TOKYO -- Toyota is raising its prices on some U.S. models later this month amid increased worries about its profit growth in the American market.

The price increases, which will start in the middle of May, include a hike of $200 on the 2008 Yaris sedan, boosting the cost of the base model to $12,425, with higher prices for models with extra features.

The 2009 Camry will go up $200, to $18,920 for a model without any extras, the automaker's U.S. unit said in a statement released Friday.

Posted by Peter C. T. Elsworth  at 10:59 AM to Toyota | Permalink | Comments 0

Backseat Driver: GM's Malibu hit by UAW strike

The United Auto Workers' trike against General Motors' Fairfax plant near Kansas City could not come at worse time for the company because it affects the production of the Chevrolet Malibu, won of the few bright lights on GM's radar screen.

Not only did the Malibu get rave reviews when it came out last year, but its sales were up a healthy 40 percent in April - when GM's overall sales were off 16 percent.

GM is already suffering from a strike at a plant in Delta Township, Mich., according to USA Today.

Meanwhile, a strike against American Axle has slowed production of its trucks and SUVs, but the company is taking advantage of the slowdown to reduce production of vehicles that are not selling well.

Posted by Peter C. T. Elsworth  at 4:47 PM to GM | Permalink | Comments 0

Backseat Driver: Chrysler's gas price guarantee carries risks

Chrysler's "Let's Refuel America" program which guarantees anyone buying one of its vehicles in the next few weeks gas at $2.99 a gallon for 12,000 miles a year for three years carries some risk for the automaker.

With the current turmoil in the crude oil market, Chrysler could find itself paying out alot more than the 60 cents or so difference between $2.99 and $3.60 that exists now.

Three years, after all, is a long time when you consider how oil prices have almost doubled to over $120 a barrel in just the last 12 months. And Goldman Sachs is now talking about oil at $150 to $200 a barrel!

While speculation has had a part in driving up oil prices, it is hard to imagine how the high prices are not going to filter down to the pump. And if gas prices do remain higher than $2.99 a gallon, the program will only cut further into the company's profits.

On the other hand, if the price of gas does fall to below $2.99 a gallon - and the gas cards become invalid - Chrysler will have a bunch of unhappy campers on its hands.

Either way there is a risk with oil and gas/diesel prices being as volatile as they have ever been.

And then again the incentive could be undermined if other car companies come out with their own incentive plans on top of existing discounts.

"This is really more about helping customers contend with uncertain economic news," Chrysler President Jim Press was quoted as saying.

Bunk, of course.

What it's more about is a company whose sales were off 23.5 percent last month following an 18 percent drop last year and which has no subcompacts and a limited number of compact/small cars - the Dodge Caliber and Chrysler PT Cruiser - on its books when only small, fuel-efficient cars are reporting increased sales.

- Peter C.T. Elsworth

Posted by Peter C. T. Elsworth  at 1:51 PM to Gas prices | Permalink | Comments 0

Chrysler has a deal for buyers: $2.99-a-gallon gas cards

As presidential candidates spar over how to roll back gasoline prices, Chrysler on Monday said that it has come up with its own plan to bring back $2.99 gas, which it hopes will spur lagging sales, according to USA Today.

Chrysler announced a month-long "Let's Refuel America" program that will give buyers of most of its vehicles a card good for purchases of gasoline or diesel fuel that locks in the price at $2.99 a gallon for three years.

Posted by Peter C. T. Elsworth  at 9:58 AM to Chrysler | Permalink | Comments 0

Oil hits record $120.93 on fear of tight supply

VIENNA, Austria -- Oil futures rose to an all-time high near $121 a barrel Tuesday with new concerns about a threat to supply and a weaker dollar, according to the Associated Press.

The surge in oil prices was also fueled by hopes that the U.S. economy will be spared a sharp downturn after the release of data Monday showing an unexpected expansion in the U.S. service sector in April, analysts said.

Posted by Peter C. T. Elsworth  at 9:55 AM to Crude oil market | Permalink | Comments 0

Oil passes $120, gas prices slip more than a cent

NEW YORK -- Oil futures surged to a new record over $120 a barrel Monday, raising concerns about higher prices for gasoline and goods and services throughout the economy, according to the Associated Press.

Retail gas prices fell more than a cent over the weekend, but oil's advance increased the likelihood that pump prices would resume their climb.

Posted by Peter C. T. Elsworth  at 3:46 PM to Crude oil market | Permalink | Comments 0

Bob Tasca III taken out in first round at Gateway International

MADISON, Ill. – Following two days of career-best runs at Gateway International Raceway, Bob Tasca III was defeated by Del Worsham in the first round of the NHRA Midwest Nationals, according to his publicist Alexis Kinch.

“Del went out and knew that he had to put up a good number to race us, and he fired a shot off,” said the 12th place Tasca. “He took us seriously and knew that we were the real deal, and he went out and ran the low [ET] of the session. So you have to tip your hat to that team.”

Sunday was the first meeting between the driver of the Motorcraft/Quick Lane/Custom Accessories Shelby Mustang and Worsham, with Tasca missing the round win by just over one-tenth of a second.

“I had a great reaction time, which is what my job is as a driver,” said the rookie driver. “I got three hundredths off the starting line, which is big in this sport. I think there were two or three holeshot victories during the first round. As a driver I feel great, but obviously I know Chris [Cunningham, crew chief] is disappointed it didn’t have a little more tune-up in it.”

While disappointed about the first-round loss, Tasca continued to make strides during the weekend as he made his quickest career run down the quarter-mile with a 4.79 ET on Saturday.

“Chris has done just a tremendous job setting up this hot rod, the car just didn’t do what we expected it to today. I give all the credit for how far we’ve come since putting this team together in November to my crew chief and the guys on my team. We’re sneaking up on this thing. We’re only an eyelash out of the top 10 with a lot of racing to go, and certainly we’re working towards being in the top of the field come Indy.”

“When you’ve got a car running as good as this car is running, you just want to keep racing because you know your day is going to come. This sport requires consistency and it requires drivers to cut great reaction times that can put their team in a position to win. And then it just needs to be your time. It can go either way in rounds, and our day is coming. It isn’t that far around the corner the way this car is running.”

The NHRA POWERade Drag Racing Series takes a week off before traveling to Bristol for the eighth annual O’Reilly Thunder Valley Nationals presented by Q May 16-18. The event will be the first visit to the Tennessee track for Tasca.

Posted by Peter C. T. Elsworth  at 3:42 PM to Racing | Permalink | Comments 0