13 Signs Oil will rise above $100 a barrel - Scooter Sales to Soar!

Much of what is going on was bound to happen, or already happened and is now happening again. I was talking to my friends in Italy and they are paying three times as much as we pay in Miami for gasoline. I woke up this morning and it was at 3.27 at my local station.

America has always kept gasoline artificially low, but despite the run we had in 2008 this is a realistic ride since its about time gasoline goes up. Our country can't keep invading or forcing other countries to sell us gasoline. We need to secure our own sources of energy and at the same time cut back on what we use.

For the Motorcycle Industry this is the jolt we needed since consumers will be running to stores to buy new products and dealers will be scrambling to find parts for used bikes and scooters as they come out of the garage. That used CPI or TNG scooter just started looking a lot better when gasoline hit $4. So get ready, keep your accounts in good standing because you will be looking for parts come March.
What does it all mean? It will mean higher prices at the gas pump, at the supermarket, when you go buy anything with plastic or that requires gasoline. Chemicals, transportation, airline tickets everything in the world requires energy and the cost is going up again.

In other words, millions of average American families that are already being stretched to the limit are about to be stretched even more.

That is really bad news for those families and it is really bad news for the U.S. economy. What can we do to help? Save gas, buy a better car, and bust out with a scooter or Ebike so we stop sending money overseas.

The Powersports Industry needs gasoline to go up for the boost that isn't coming from consumer spending and the lack of consumer financing, but long term we should promote transportation. Scooters in most of the world are meant as transportation not toys or luxury items. A million Kymcos out there and most are used for business every day when you travel in Taiwan. Something to think about....

On Wall Street today crude for February delivery settled up 49 cents, or 0.5%, at $91.49 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures rose 53 cents, or 0.6%, to settle at $94.38 a barrel.

What does this all mean? See the current article of Fortune online:
http://finance.fortune.cnn.com/2010/12/28/bull-vs-bear-how-high-will-oil-go-in-2011/
The boom is coming. This time stores cannot focus on selling the $499 scooter, there are too many out there and the market is flooded. If you want to capitalize on this trend you will have to focus on repairs, service, and selling a quality vehicle. Too many stores made money off the boom only to pay the price later on cheap scooters. One bad lawsuit and the profits from 20 scooters is lost. That's the negative side, the positive side is that many of you who laid off your mechanics, who let go of employees you won't find scooter mechanics to fill all the service tickets when the boom comes so be ready.

Oil prices equal a 38% rise in scooter sales. Even if its a temporary fix to the powersports problem in America, it still means an increase in motorcycle sales. It might mean a drop in RV, ATV, UTV sales, but for scooters and bikes its Mana from the sky. It also affects the discount effect meaning the price and value of units goes up, but as sales rise so does the industry in general. So here we go another Time Warp.

The 13 SIGNS OF GASOLINE DOOM! or how I learned to stop worrying and love OPEC'S GASOLINE APOCALYPSE.

1. Today CNN reported the following:

The former president of Shell Oil, John Hofmeister, says Americans could be paying $5 for a gallon of gasoline by 2012. In an interview with Platt's Energy Week television, Hofmeister predicted gasoline prices will spike as the global demand for oil increases. "I'm predicting actually the worst outcome over the next two years which takes us to 2012 with higher gasoline prices," he said.

Tom Kloza, chief oil analyst with Oil Price Information Service says Americans will see gasoline prices hit the $5 a gallon mark in the next decade, but not by 2012.
Source CNN http://money.cnn.com/2010/12/27/markets/oil_commodities/index.htm
I mean he must know something I don't know right? The guy was the CEO of Shell. He must know something 99% of Americans don't know.

2. AAA is reporting gas will hit above the $3.10 mark nationwide in Jan. AAA's Daily Fuel Gauge Report. It's already $3.26 in Miami and today it was 30 degrees which leads us to the next point.

3. Don't forget the Cold. This could be the coldest season of record further pushing the price of oil. Cold temperatures across the northern hemisphere and a winter snowstorm that socked the northeastern U.S. also helped prop up energy prices.

4. Asian Demand is back in full swing. What will a billion extra cars do to the planet? For about a hundred years the United States used more energy than anyone else, but now the biggest consumer of energy on the globe is China.
Source: Asia Times

5. We devalued the dollar. You might as well invest in Scooters and Electric vehicles. Yes our Federal Reserve just made your savings and everything you own worth a lot less. Blame the banks, blame the system, doesn't matter. The rest of the world has reacted very negatively to the quantitative easing program initiated by the Federal Reserve, and as the Fed continues to flood the financial system with dollars it is only inevitable that the price of just about everything, including oil, will continue to go up.

6. Despite new laws in place speculation is coming back. The speculators smell money and they are beginning to pour into the market. According to the Commodity Futures Trading Commission, long positions in oil outnumbered short positions by 205,890 contracts at one point in mid-December. That should be a clear sign that investors do not expect the price of oil to go down any time soon.
Source: Market Oracle

7. Much of what we are seeing the price of oil do now is simply the continuation of a major upward trend that was interrupted by the financial crash of 2008. Asians have money again, game on!

8. According to Market Oracle the speculators smell money and they are beginning to pour into the market. According to the Commodity Futures Trading Commission, long positions in oil outnumbered short positions by 205,890 contracts at one point in mid-December. That should be a clear sign that investors do not expect the price of oil to go down any time soon.


9. Goldman Sachs is projecting that the price of oil will reach 105 dollars a barrel next year, and JP Morgan is projecting that the price of oil will reach 120 dollars a barrel in 2012.

10. Joe Petrowski, the CEO of Gulf Oil and the Cumberland Gulf Group, recently told CNBC that "there’s 1 in 4 chance we’ll take out the $147 highs before Memorial Day." John Hofmeister, the former president of Shell Oil, believes that American consumers could be shelling out 5 dollars for a gallon of gas by 2012.
Source: CNBC

11. Iran and Venezuela want $150 a barrel. Mohammad Ali Khatibi, Iran's representative to OPEC, said on Sunday that he expects to see 100 dollar oil very soon. No doubt since both Venezuela and Iran have publicly said they want gasoline to go up, its the only way their regimes can stay in power. Does Obama look like the type of guy to start a fight? He's not. If you were in high school he would be the guy to tell everyone to calm down. Bush might have kicked you first if he got Angry, but no way is Obama ever sending American troops into a Venezuelan jungle or stretchering our troops into Iran. Bush might have listened to the Saudis, but you can bet your bottom dollar Obama won't.

12. Over the last couple of months, a clear trend of rising oil prices has been established. This represents a 13 percent increase in just the last month.
Source: The Wall Street Journal

13. Venezuela is dumping its refineries in the USA and trying to unload CITGO at a loss to avoid paying for litigation damages. Chavez is bound to loose in US court billions for taking American property from companies without due compensation and when that happens he will unload CITGO and all its stations here. He's told everyone he is the leader of a communist socialist regime and doesn't plan on paying anyone he owes money to. Including the United States. When this happens you will see how that 5% of oil they are supplying us with affects things in the next two to three years.

Get ready, make sure your scooter store has the ability to deal with the service side and stay tuned http://www.mrp-speed.com