Gas prices could go down to 2 dollars by thanksgiving...but something doesnt seem right

Sorry Littlebird but if what you say is true then oil would not be falling. Also is times of uncertainty the big money people put their cash into gold, it too is falling. So this leads me to the understanding that things around the world are cooling down.

So I will go out on a limb and bet you a 20oz Dr.Pepper that one year from now the US is NOT at war with Iran. BET?

Roper

A lot of investment bankers are taking their profits off the table and cashing out.
An investment analyst said these guys were making 14% on billions of dollars worth of oil contracts. When the oil was at $70, they controlled $20 of the price.
So the real price is somewhere around $50, and thats with the fear and scare tactics still built in.

For these bankers, gold and oil was just the fad at the time. He said they'll probably dump their money into Vietnam shrimp fishing next.

All i'll say is that it's very weird when the price of gas dropped several cents in detroit during labor day weekend. Now that is out of the norm. Labor Day weekend always is among the higher priced days of the year.

So far, my local gas station is hovering around the $2.15 mark, I highly doubt it will come down and lower than that.. They're still price gouging... But we'll probably see prices rising again within the next few weeks.. slowly.. but they will... Elections are 7 weeks off... They'll be back to "normal" around $2.60 a gallon around that time I would think..

Buck 85!

autos.msn.com...

Roper

Gas prices won't be down $2.00 a by thanksgiving. It just won't be.

The price naturally falls some after the summer driving season.

Republicans don't control the oil companies. No one does. They are an evil entity all to themselves and it seems they are outside of law and reason and patriotism. If the republicans really did control the oil companies then prices would have been lower during the Bush administration and higher during Clinton's in order to secure republican control of everything.

Originally posted by FlyersFan
Gas prices won't be down $2.00 a by thanksgiving. It just won't be.

I got bad news for you Chief, in several parts of the US prices are already below $2.00.

EEEVIL oil companies strike again!

I dont think our ability to 'produce' gasoline from oil has changed that much in the last 3 months.

Nor do I think the rate of consumption has changed much either in the last 3 months.

Nor the production or availability of oil at market prices.


So,... what has changed?

Anybody been looking at the currency futures price and volume charts?

Smirkly, page 3 half way down my post.

Roper

Originally posted by smirkley
So,... what has changed?

Like I said, this happens every year right after the end of the summer driving season. It ALWAYS goes down significantly - no matter who is in office. Toss in the fact that there was that HUGE oil find in the Gulf of Mexico .. it was in the news last month .. that will give us 50% more gas ... Of course it's going down.

Originally posted by Number23
I got bad news for you Chief, in several parts of the US prices are already below $2.00. EEEVIL oil companies strike again!

I'm a chief-ette. Girl. Just FYI.

I don't like the oil companies. Not at all. But are you saying they are evil because the prices went down? You'd say they are evil when the prices go up as well, right?

So they are evil no matter what the price does?

Just to get an idea on the local prives around the country, Why doesnt everyone post their local prices? and what they were originally before they came down.
Mine is sitting steady at $2.15 down originally from $2.85.. It took about 2 weeks to come down from that $2.85 to $2.15..

Oil companies are evil damn it... And I'm sure there are certain political individuals who can inlfluence Oil Companies.. giving them massive tax breaks and what not.. It helps.. It gives them incentive to do what the dictators.. I mean... Governments asks them..

Yesterday, I saw medium grade for $2.93US.

This is not surprising for 2 reasons.

1) Crude oil is dwn from a high of $78US + to now $62US +.
Clearly that is a reason to lower prices. Let me just say one more thing, gas went up 5 cents/gallon for weeks, yet it comers down 2 cents a week or several days.

2) Elections are nearing and high gas prices WAS a major issue that the Democrats were going to use.
If that is true, will gas start going up right after the elections, back to $3.50 +/gallon???

Medium grade for $2.93!!! where do you live? good lord.. That's $2.25 out here.. That's just terrible..

And I live in Southern Ohio, Cincinnati Area

[edit on 17-9-2006 by Ox]

unless I missed it, haven't seen this mentioned , so far, but

a cheaper mix is a main contributor to gasoline price declines in the fall.

Why Prices Fall in the Fall
Winter gasoline blends are phased in as the weather gets cooler. September 15th is the date of the first increase in RVP, and in some areas the allowed RVP eventually increases to 15 psi. This has two implications for gasoline prices every fall....

i-r-squared.blogspot.com...

Check out the link, for a more detailed explanation.

I'm not going to argue that gas prices often fall in the later months of the year.. . I AM going to argue that the gas prices dont often fall 70 cents a gallon in 2 - 3 weeks in the later months of the year.. Last year in my area they dropped about 10 - 15 cents a gallon.. no where near where they are now.. not at all..

I've seen gas prices ranging all the way from 2.43 to 2.09 all within South Carolina last weekend. Prices here seem to be dropping about 2 cents a day with some spurts. I heard this morning someplace in Virginia was selling gas for 1.979. I believe a financial news network was discussing how the Republicans may get a boost in elections due to the price of gasoline dropping. They showed a graph showing consumer opinion seemed to align with the gas price.

The funny thing is, the reason that prices are dropping was explained in the article explictly, and it was exactly what free markert gurus have been projecting would happen.
Demand has dropped.
Why? Becuase oil, and as a result gas, has been so expensive. Less road trips this summer, less people driving less miles in order to save thier wallets, reduced consumption of gas, and as a result prices peaked, then began to drop.

It doesn't hurt that supplies of gasoline in the states were artificially tightened by the recent ethanol mandate, which required more ethanol to be blended into gasoline supllies than existed in the united states at the time, coupled with differing standards, leading to incompatibillity issues.

However, at its core, the price of oil over the last three years, has been a text book example of markets handling shortages and shocks better than centrally controlled economies.

Whereas the formation of OPEC, and President Carter's disaterous responses lead to oil shortages throughout the US, Consumers themselves alloted the fuel more effeciently than any government agency could have ever hoped too. We carpooled, we took publlic transport, SUV's stopped selling as well, hybrids got renewed interest, people even walked and biked more. It was an environmentalists dream. Green technologies recieved more public interest in the last three years than in the previous ten.

And not an additional dollar in taxpayer money was spent on "green awareness" or "ecofriendly education". It didn't require recycling legislation, or fines, or credits, or protests, or any of the traditional "people power" methodology. All it took was real people power. Markets, the ultimate conspiracy. Millions of individuals working together, each beliving he is pursuing his own agenda, while all are secretly collaberating to achieve the same end.




[edit on 18-9-2006 by ThinksYouAreAnIdiot]

That was a very well thought out post, Thinks. I'd like to see you posting your ideas over at Social Issues.

Originally posted by FlyersFan
Like I said, this happens every year right after the end of the summer driving season. It ALWAYS goes down significantly - no matter who is in office. Toss in the fact that there was that HUGE oil find in the Gulf of Mexico .. it was in the news last month .. that will give us 50% more gas ... Of course it's going down.

Howdy there FlyersFan...

To really understand it you have to understand how the refineries work ( this is directed to everyone as well )...

From what I understand ( I don't work at a refinery...but belive it or not my wifes uncle was a VP at one( he's retired ), there are several different "blends" of gasoline, one for summer, one for winter, and belive it or not, one for the different states ( I know California has a different blend than my home state due to the EPA regs...)...

The winter "blend" is cheaper to manufacture, thus cheaper at the pumps ( get what I'm saying? )...

Here is a link to a Google search for the winter/summer "blends"...

click me

I don't have one at the moment for the different states ( but trust me they are there ), I'll see if I can find one, but it is there...