Fuel pricing and ADM (predictions?)

[Drex]

Far northwest suburbs of Chicago and the wholesale price jumps of gasoline in the last couple days has resulted in $4.39 Reg and $5.11 Premium at the pump this morning.

As people will knee jerk react to the prices with a rush to avoid less efficient vehicles, (they don't care if they will never recoup the cost of buying a different vehicle, because people are not always rational), added to the actual budgetary impact of the higher pricing including higher costs for everything else because of increased transportation costs. Will the demand lower for the fuel slurping Bronco and drop ADM, will the scarcity of vehicles in general keep the prices high, or will it get to where people just aren't buying new cars at all, thus lowering the demand everywhere?

At over $5 a gallon (all my vehicles are tuned for 91 Octane) I hit a mental barrier about pleasure driving and it would somewhat be on my mind while racking up the miles. It gives a slight pause in my thought process about a 17 MPG daily driver toy that the mere purchase price would likely cover all the repair and fuel costs of my existing vehicles for the rest of my life. It is not a financial barrier, but a psychological one. Not cancelling my order, and I fully expect to be ordering again for 2023 and maybe for 2024, so it is far off, however it takes some of the bloom off of the rose, so to speak, on the tiny, tiny amount of anticipation that Ford has not destroyed.

Other people maybe doing some reevaluation today, thoughts on what the Bronco market will do on pricing?

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[mikec426]

I predict no noticeable change for the Bronco market.

 

[Last Ride Bronco]

Generally, there is a rise in gas prices right before summer vacation begins, so you haven’t seen the top of gas prices by a long shot. In addition there are starting to be gas shortages. Welcome to the 1970’s.

 

[Wanted33]

As my dear old Dad used to say, "It'll get worse before it gets better". I guess that would depend on where the Bronco will fall in a persons vehicle use. Myself the Bronco won't be my daily driver, I have a Ranger for that. If one is thinking of daily driving their Bronco, it could give them pause for sure. They could drop the SAS, or go to a lower trim like the BB with the 2.3L for better mpgs, or drop out all together depending on their budget. Only time will tell.

One positive thought, and it ain't much. If people start dropping out we may get our Bronco a little sooner.

 

['18 M2]

Last week, JP Morgan analysts predicted $185 per barrel. So yeah, it’s going to get significantly worse.

https://www.bloomberg.com/news/arti...85-oil-in-view-if-russian-supply-hit-persists

 

[secure]

Factoring in everything that is going on in the world right now, they have the greatest narrative in history to keep the price climbing.
Its $4.20 for premium in Dallas, TX. I was in the hill country at a town that was the only gas within 60 miles and they had it at $4.79. The people will pay to play and they know it.

Still not buying an EV though....

 

[Kos]

In ‘08 when gas hit $5 a gallon they said everyone was going to abandon pickups and large suvs yet they continue to be the auto industries bread and butter

 

[Seacat]

Who buys a Bronco and worries about fuel efficiency?

 

[Brsox]

In ‘08 when gas hit $5 a gallon they said everyone was going to abandon pickups and large suvs yet they continue to be the auto industries bread and butter

Everyone was abandoning pickups and SUVs then. There were signs at dealerships stating that they would not accept a truck or SUV in trade.

 

[Tripodbruno]

My SO drives a Tesla to offset my poor fuel economy Most efficient thing would be for me to drive a first gen (she'll buy that for sure!)

 

[ColeTrain84]

Everyone was abandoning pickups and SUVs then. There were signs at dealerships stating that they would not accept a truck or SUV in trade.

yep. i remember back then too and i picked up my 2nd Silverado Z71 for super cheap because of gas prices. 5 years later and an additional 200k miles i got nearly what i paid for it lol. I'll drive my Buick Lesabre most days anyway as its my beater car

 

[Rayder]

If an extra ~$500 a year in gas is going to bankrupt someone, they probably shouldn't be looking at a brand new $50,000 SUV anyways.

 

[DwnSth]

Fuel price won't stop me from getting the Braptor. However I will be rethinking 2000 mile trips pulling it behind my diesel MH. At 10 miles a gallon and diesel already pushing 5 bucks my off roading trips will stay relatively close to home.

 

[HoosierDaddy]

Everyone was abandoning pickups and SUVs then. There were signs at dealerships stating that they would not accept a truck or SUV in trade.

Yeah, I was going to say, the market tanked.

New Super Dutys sat on the lots past their model year and were getting $10K in rebates.
Or maybe they knew then what a POS that 6.4 would turnout to be. LOL

 

[HoosierDaddy]

If an extra ~$500 a year in gas is going to bankrupt someone, they probably shouldn't be looking at a brand new $50,000 SUV anyways.

I recall in 2008, a news analyst stated,
"Average Americans won't even bother setting a fuel budget until it hits $7 a gallon..."
The point being how cheap out fuel is compared to other places. Even then, Europe was already at $7gal. equivalent, and had been for some time.

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