This was its biggest single day jump ever, almost $11, to $138. Jim Rogers says oil prices could rise for years.
There is no supply of oil unless you – somebody can tell us where the oil is, the bull market in oil has years to go despite new corrections which may or may not come.
If it goes to $300, there will be drilling at Buckingham Palace. I don’t know how high it’s going to go, Betty, but unless somebody discovers a lot of oil very quickly and very accessible areas, the facts are the world is running out of oil – out of known oil – known oil reserves.
Sue’s car arrived today from Connecticut. When we moved, we towed my car behind us on a Ryder truck, then had hers shipped. We booked the move through a major car carrier who, as they always do, farmed out to an independent trucker. I asked our driver today, how many miles per gallon do you get when the truck is full. About 5, he said.
His trip across the country took two weeks, as car carriers criss-cross the country picking up and dropping off cars. So, figure 400 miles a day, not always a full load, maybe averaging 7 mpg, that’s 800 gallons at probably $4.75 a gallon. So, gas cost him probably $3800. Carriers hold 6-7 cars. We paid the company $950, maybe they paid him $800 and he did the equivalent of 7 cars coast to coast for $5600. So figure he grossed $1800 for two weeks work, not counting food, lodging, repairs, truck payments and insurance. (BTW, a new car carrier can cost over $200,000)
So, even though my numbers are guesstimates, you can see that the cost of diesel is absolutely killing their profit margin. Independent truckers are really getting squeezed, but the soaring cost of diesel transportation can and will cause the price of everything to rise.