explain gas prices to me

[Rick93coupe]

Can someone give me the reason gas has dropped so much? I don't think its because the demand has dropped enough to justify the price drop. Wasn't OPEC just talking about cutting production a week ago?

[Rich]

No one can explain it... it's all a scam!

I truly believe that gas prices are "conveniently" down right now because of the pending election.

Back in July, "Energy" was the #1 hot topic Americans had. Most Republicans are of the "drill here, drill now" mentality. While most liberals are against this.

Opec/Big Oil/speculators/etc. do NOT want energy being the hot topic... so conveniently gas prices go down before the election...people vote their pocket books!

Don't worry, they will go back up starting November 5th!

[boostanggt]

I heard American's have cut back on driving 10 billion miles a month. Say average car get's 20 mpg, that's 500 million extra gallons of gas. Supply and demand.

[k062693w]

No one can explain it... it's all a scam!

I truly believe that gas prices are "conveniently" down right now because of the pending election.

Back in July, "Energy" was the #1 hot topic Americans had. Most Republicans are of the "drill here, drill now" mentality. While most liberals are against this.

Opec/Big Oil/speculators/etc. do NOT want energy being the hot topic... so conveniently gas prices go down before the election...people vote their pocket books!

Don't worry, they will go back up starting November 5th!

:agree:
That's exactly what I think it is... I'm going to say it will be back to over $3.00 by Christmas

[mustang8998]

I heard American's have cut back on driving 10 billion miles a month. Say average car get's 20 mpg, that's 500 million extra gallons of gas. Supply and demand.

From what I see, on a daily basis, I don't believe that. Traffic is just as bad now, as it was 2 years ago.

It seems to me, that no one slowed down, on miles driven.

I haven't changed any, at all, in my driving.

[Waffles]

Bush just went into his office and turned gas prices down on his top secret control box thingy.

[Rick93coupe]

LMAO!

[boostanggt]

From what I see, on a daily basis, I don't believe that. Traffic is just as bad now, as it was 2 years ago.

It seems to me, that no one slowed down, on miles driven.

I haven't changed any, at all, in my driving.

I don't believe it either but that's what the local news channels are claiming. It definitly has been cut back but I highly doubt that many miles.

[k062693w]

Bush just went into his office and turned gas prices down on his top secret control box thingy.
:lol:Now that was some FUNNY $HIT !!!!!!!!:lol:

[Mista Bone]

Can someone give me the reason gas has dropped so much? I don't think its because the demand has dropped enough to justify the price drop. Wasn't OPEC just talking about cutting production a week ago?

Oil has dropped, therefore gas dropped.

Remeber when oil was $145+ a barrel????


At one point on Friday, U.S. light crude for December delivery dropped to $62.65, its lowest since May 2007


* At the day's low, which was the weakest since $62.43 was
struck, also on May 31, 2007, prices have fallen $83.12, or
56.44 percent, from the record $147.27 hit on July 11.

Watch the gas futures prices, add 50-60 cpg to get about what the pump price should be.

Also gasoline inventories rose sharply.........



Much larger-than-expected builds in both crude and gasoline sent futures prices tumbling, with front month November NYMEX crude futures falling below $70 a barrel for the first time in over a year.

Gasoline futures also fell as Energy Information Administration weekly data showed a 7 million barrels stock build in gasoline, much higher than the 2.9 million anticipated by analysts, while demand fell 5.2 percent from last year.

"At this point, it is like salt in the wounds. With the bearish breakdown that we've had on economic news, there is really nothing positive. The market shrugged off the emergency OPEC meeting that was announced to stabilize the prices," said Rob Kurzatkowski, Chicago-based futures analyst with OptionsXpress.

The largest build of gasoline was seen along the Gulf Coast as refinery restarts and ramp-ups after Hurricanes Ike and Gustav overshadowed imports, which fell as the arb from Europe closed on high Eurograde prices.

Total motor gasoline stocks in the region grew to 64.7 million barrels from the 60.4 million barrels, data showed.

Exxon Mobil said it had begun initial processing of crude at its 348,500 bpd Beaumont, Tex. refinery and was blending diesel and gasoline for local use. [ID:nN16448914].

Valero is finishing up the restart at its 295,000 barrel per day refinery in Port Arthur, Tex. as the last unit to come up -- the gasoline-making FCCU -- was nearing planned rates. [ID:nN16381943]

[REDHOTGTGIRL]

I heard American's have cut back on driving 10 billion miles a month. Say average car get's 20 mpg, that's 500 million extra gallons of gas. Supply and demand.

I don't agree with that either. In fact, my morning commute to Tri-County from Mt. Washington just keeps getting worse. It is taking me an hour or more these days...it sucks!! I would say it has a lot to do with the elections, but who knows. It is all a scam.

[hchays]

It is not just the U.S. that determines the oil/gas prices. The world economy is down. I do agree that by Nov 11 (give them a week after the election) that gas prices will be on the rise. It happened during the 04 election also. The part the pisses me off the most is that they can't keep the story straight. Well before the election when oil production was cut by OPEC price went throgh the ceiling (supply and demand). Now at election time OPEC cuts production and prices fall because "because of the economy". It is like they are sitting in thier big offices and saying Let's f@#k with them one more time and there is nothing that we can do.......:flipoff:

[mustangboy]

You guys also have to remember we are just a part of the worlds gas usage. Just think if most Americans cut back just a couple miles of driving what a difference it would make and then imagine if the people in India and China did cut back as well that is a huge amount of consumption.

[cstreu1026]

I am not much for conspiracy theories but I have to agree with Rich. I would like to think its because oil prices are down but think about how much gas was when oil was on its way up. If the oil today is the same price as it was in may 2007 then we should be paying a lot more for gas. Gas peeked at somewhere near $3.50 a gallon around here just before Memorial Day 2007. I also think its convenient gas has fallen off more in Ohio which has become a key state in this election. Its nearly 50 cents more per gallon near my parents house in Kentucky than it is hear at home. Thats big price difference for only 70 miles.

[Rich]

It's very simple...

Mid July, oil was at $145 per barrel
end of October, oil is at $61 per barrel

Do you really think the "world" has cut it's demand/usage by more than half?

[02mingryGT]

It's very simple...

Mid July, oil was at $145 per barrel
end of October, oil is at $61 per barrel

Do you really think the "world" has cut it's demand/usage by more than half?

Oil futures were inflated to begin with. The United States has cut it's usage by 1.8 million barrels a day. I would use this figure since miles driven isn't a fair representation because the average MPG is bound to increase year in and year out.

The rest of the world is in deep economic shit as well. China's economy is slowing as well and it's energy usage use is declining. The only way gas is three dollars a gallon is if the world economy reverses itself which is extremely unlikely. Part of this is being blamed on the presumption of an Osama Presidency and some folks aren't into sharing the wealth.

Also on a conspiracy note, I read on a message board somewhere a post a guy made back in August when oil was still 110-120 a barrel. He said that there was some group of super rich that actually control the world's economy. I know, sounds funny but the thing is he said the plan was to drive oil down to 50-60 dollars a barrel. The reason was because of the aggressiveness of Iran, Venezuela and Russia. This guy wrote he didn't care if anyone believed him or not but in the end oil would drop that far. Seems he was right at least about the drop in price.

[02mingryGT]

Oh yeah I think I've posted this before but this website is helpful for finding the lowest prices in the Ohio area:

www.cincygasprices.com

[IWRBB]

It's not linear. That's what you guys are missing. If you have just a small shortage of gas, the prices skyrocket. If you have a small excess of gas, they plummet just as fast. You don't have to be very far from the supply=demand point to skew the price a lot.

Same goes with lots of other commodities. Take farm crops prior to quotas. It doesn't take much of an excess in crop production to just kill the prices. Let's say the first 70% harvested filled the demand for the year. The last 30% of the guys left with unsold product cut their prices to unload their harvest. Then the guys who just got undercut, undercut the next guy. So it goes on down the line until it's worth practically nothing. Even though the majortiy of it gets sold, nobody wants to be the guy who can't sell theirs, so everyone keeps dropping the prices until it collapses.

I drive a lot less than I used to. I also drive a 30 MPG car most of the time now vs. a 12 MPG truck.

[Mista Bone]

I "speculate" that oil prices will go down......and go up.......and go down.....and back up!


Money that was pulled from the mortgage/banking industry went to oill futures, it was ALOT of money which drop the oil prices thru the roof.....