Buying insurance for your moped may be a wise decision, but there has always been another kind of moped insurance where the moped itself is the policy. With oil prices again heading toward an all time high of $70 a barrel it’s useful to ask why oil keeps going up. Last September oil prices hit an all time high when cyclone Katrina cut a swathe through the Gulf of Mexico oil and gas industry. Katrina had a devastating affect on New Orleans, but the damage to the oil industry was relatively short lived. Now six months or so later another set of drivers are pushing oil prices back up toward the same highs. The oil market like any market is subject to supply and demand and as I research this blog energy market reporters are quoting a bunch of data to do with gasoline inventories and consumption which is 0.9 percent higher than a year ago. So in spite of price increases and over 200,000 new hybrid cars on the road, demand for gasoline keeps pump prices rising. Last September it was a threat to supply due to Katrina that caused gas prices to jump and on that occasion price increases were supply driven. No-one can predict the actions and destructive path of a category 5 hurricane, but gasoline demand is something that can be closely monitored and allowances made to maintain supply inventories, so why are inventories down at the start of the crucial summer season. That could be a slip up on someone’s part but its not, blunders that big don’t just happen unless there’s an underlying problem with supply. The supply of gasoline is struggling to match demand and it’s happening at the most crucial time of year, the summer driving season. Summer is when people use their motorized toys; cars, boats, RV’s, planes, motorcycles, mopeds even, all have a demand for gasoline. Now with lower inventories to replenish just when demand is approaching its highest, we might see oil prices rise beyond last Septembers $70 a barrel historical high, by July we could be seeing oil prices reach $75 a barrel. Speculation as to why oil and gas supplies appear to be failing is all over the web and a visit to one of the many Peak Oil sites might shed some light on the Peak Oil dilemma now facing the world. Adjusted for inflation, the all time high needs to hit $90 a barrel to see a repeat of the circumstances that saw mopeds experience their 1970’s boom time. One of the things I advise when people are thinking about buying a moped is potential buyers consider an old skool 1970’s moped. These are classic pedal mopeds that have little in common with the trendy modern scooter mopeds that now make up the bulk of new moped registrations. It’s hard to find a mint 1970’s car or motorcycle that has seen little use in thirty years, but there always seem to be a few mint 1970’s mopeds for sale on eBay. Those mopeds were bought by people who only planned to use them if gas prices put their car off the road, that didn’t happen and those mopeds have sat in garages and basements all over the country seeing little or no use until one day they turn up for sale in unused condition and usually get snapped up at bargain prices by collectors and moped enthusiasts. The moped market is also subject to supply and demand and now for the first time many popular new moped models are being sold on back order indicating the demand for mopeds has been greater than anticipated. I’ve got used to moped sales slackening off in winter and increasing into summer, but this year moped sales have been steady throughout the low season. This tells me people are again buying mopeds as a “just in case” solution should gas prices become unaffordable. In other words by buying a moped they’re taking out insurance that should that situation occur, they will still get to work on time. These days with oil price instability and oil supply uncertainty, buying a moped is a form of insurance against high gas prices. Even people who wouldn’t normally be seen dead on a moped are today buying mopeds destined to be tucked away in the garage until circumstances force their use. Mopedguy
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