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Gas Prices Dropping Like Leaves These Days
Gas prices are shrinking a great deal lately, have you noticed?
I don't know about your area but mine in mid Illinois have dropped to about $3.48 per gallon for regular unleaded.
I haven't seen any reason for this to happen have you? I mean we're still fighting with Iraq and Afghanistan, we're still arguing with Iran and North Korea, Russia is still acting up -- so what's going on? Why the drop in price?
Do you suppose it has any to do with Election Day being just 35 days away?
Yup Yup Yup!
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Comments (12)
you're in central IL? we might be neighbors :)
September 30, 2008 9:41 AM | Reply | Permalink
About 45 miles from Champaign.
September 30, 2008 9:59 AM | Reply | Permalink
Connie -
As much as I like a good conspiracy theory as much as the next person. It is strictly a supply and demand. Several things are going on simultaneously.
In the South we have gas shortages due to two back to back hurricanes and gulf coast refineries and pipelines going off line. So there is lower demand for crude here until refiners come fully back on line. Next in the rest of the country demand for gas has gone down due to folks driving a bit less. A carry over from $4+ per gallon. Thus again lower demand for crude. You lower demand and prices drop.
September 30, 2008 10:00 AM | Reply | Permalink
Yes. In addition to the reasons jsfox mentioned, the volatility of the price of a barrel we've seen in recent days can also be linked to the overall volatility of the economy and markets.
http://ap.google.com/article/ALeqM5i5TtajgUpSm7KY5jf-lCJGHBB-tAD93BUSI80
http://ap.google.com/article/ALeqM5i5TtajgUpSm7KY5jf-lCJGHBB-tAD93GHHOO0
September 30, 2008 10:15 AM | Reply | Permalink
You guys can get as technical as you like, I continue to think the oil market is being 'controlled' by those in power and for political reasons.
September 30, 2008 10:20 AM | Reply | Permalink
Well OK then, I guess we can call this conversation over ;)
September 30, 2008 11:05 AM | Reply | Permalink
Severe fuel shortage grips parts of US southeast
http://www.reuters.com/article/economicNews/idUSN2938618920080930
September 30, 2008 11:07 AM | Reply | Permalink
There is absolutly NO excuse for the cost of gasoline to increase by more than 300% in less than 8 years.
It took over 45 years to reach the price of $1.24 per gallon in 2000.
Sorry, but I find it very difficult to continue believing these "economic" and "supply and demand" reasons.
September 30, 2008 11:33 AM | Reply | Permalink
Connie -
Just stop and think about something for minute.
You are looking at this as if oil demand only existed in the US. It does not it is a worldwide commodity. You have to look at the increase in price by looking at the massive increase in demand not just here, but in China and India as well. 45 years ago, heck even ten years ago both these countries were not high petroleum users. In fact China was a net petroleum exporter.
Today this is what it looks like.
#1 United States: 20,730,000 bbl/day
#2 China: 6,534,000 bbl/day (est.increase 10%+/year)
#3 Japan: 5,578,000 bbl/day
#4 Germany: 2,650,000 bbl/day
#5 Russia: 2,500,000 bbl/day
#6 India: 2,450,000 bbl/day
Just to put in perspective in 1959 this country use 6 million barrels a day
September 30, 2008 11:56 AM | Reply | Permalink
You forget however, don't you jsfox, that supply has also increased proportionally to demand.
Somebody controls that SUPPLY side. They DECIDE who gets what and how much. There's no SHORTAGE of oil. It's being CONTROLLED.
It's like when our government controls the amount of corn that is grown -- price of corn is being manipulated or controlled. Saudi Arabia and others are controlling the amount they produce.
Now I admit we need new refineries but nobody's going to convince me there is a shortage of oil.
September 30, 2008 12:20 PM | Reply | Permalink
Look I am willing to engage you in this and listen to your argument, but you need to offer up some facts to back them up. And yes supply did go up, but now were are at a supply limit and increasing demand. Saudi and the other producing nations could go full bore, but at the end of the day maximum production is still a finite number. And yes when demand drops the oil producing nations reduce supply this is a natural occurrence in any commodities market, be it oil or orange juice.
Next I am not going tell you that speculation hasn't caused some of the spike, but it not the ultimate reason. Nor why there will be ongoing upward pressure on oil prices.
September 30, 2008 12:42 PM | Reply | Permalink
I'll add to this by saying that about 14 years ago when Republicans gained control of Congress they began working with Saudi Arabia and others to get the price of gas up slowly but surely. For years some oil companies complained that other nations were paying $4-6 per gallon while we only paid $1 or so.
It is my theory that, it was decided back then that by small dollar amounts each year being added, the price would eventually end up where they are today to 'make up' for the oil companies loss of revenue over the past 45 years.
I don't have any facts but I'm betting we now pay what other countries are paying -- 8-14 years ago we did not.
September 30, 2008 12:28 PM | Reply | Permalink
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