Why is gas so low!?, page 1

Here's your answer. Feel free to do your own research on Lindsey Williams.

www.youtube.com...

reply to post by they see ALL

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don't get too comfortable, opec doesn't like the low prices, they are wanting to cut production in order to raise prices again

Opec’s mettle will be tested next week when the cartel assembles in Vienna at a hastily convened meeting to discuss the economic crisis and whether the exporters’ club should take action to arrest the fall in the price of crude oil. Mounting alarm over the dwindling rent from oil sales prompted Opec yesterday to bring forward an emergency meeting scheduled for mid-November to next Friday.

Together the cartel members have lost about a billion dollars of revenue a day since crude price peaked in July. The benchmark US Light crude price fell $5 per barrel on the New York Nymex exchange yesterday to $69.15 (£40.05), less than half the value at oil’s peak, while London’s Brent crude futures contract fell to $65.70.

Evidence of rising oil stocks in America and weakening demand for energy in China’s mills and workshops has speeded up oil’s decline, but there is no agreement within the cartel over price strategy. Opec hawks, such as Iran and Venezuela, want to shore up the price by turning off the taps, but neither country can afford to cut output and forgo revenues. Both are failing even to produce at their agreed quotas because of weak investment in their oil industries, so the burden of any cut will fall on Kuwait and Saudi Arabia.

The Saudis would not like to see the price falling below $60 per barrel, a level at which most economists reckon the kingdom can support its profligate princes, the social security bills and invest in the oil industry. However, the Saudis will be listening to the grinding cogs of the slowing Asian industrial juggernaut with mounting concern. A deep recession might precipitate an oil price collapse

Source

I'm kind of surprised though about saudi arabia, they threatened to leave OPEC due to the fact that they didn't want to cut back production ....

so basically what i'm trying to say is the prices will sadly be going up again, i mean we don't want the oil exec's to lose some money....

btw i personally don't mind the $1.95/ gallon gas out by me definitely a relief from the $4+/ gallon prices, but i'm just being realistic

[edit on 3-11-2008 by baseball101]

I am starting to think that these prices are completely arbitrarily made up . Has there been a new bill passed, are we winning the war, what's really going on? I can't think of another reason about the low prices, can you?

reply to post by they see ALL

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Hi All,

I don't think it is brain science. Nothing has happened other than 1) The world is in fanancial collapse and is still in free fall. How far this will go is anyones guess. Mine is short term, Feb. of '09, with a final turn around about 2012! (ever heard that date mentioned before?) People are scared and are conserving fuel. Less of that "consumin goin on out there" as they say.

And 2) People are driving less. If you haven't noticed this then you haven't been out on I80 or I5 (west coast). I have and can say that driving is down. Less driving means less petroleum consumption which causes prices to decrease. Or in this case drop drastically!

Petroleum prices may have been artificially high this summer due to market forces such as futures buying but that is over now and prices are responding correctly to fear and decreased demand.

A third factor that shouldn't be overlooked is that 2.8 trillion dollars disappeared in the recent market contracture or capitulation or collapse or whatever. That money just vanished, went away, gone! The result is deflation not inflation, and all comodity prices will fall including gold and silver.

So don't look for high gas prices for a long time in the future, IMHO!

And politicians (like Obama and the democrats) that thrive on high fuel prices are likely to be disappointed! Darn!

want to start getting back in favor of the American Public

reply to post by Kaiser Sohse

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Nice thought but if he actually wins then the oil company's need to start cozying up to Obama and his Chicago buds that see things from the do it or die traditional Chicago way of doing things! It's well understood how Obama and his pals get things done! Nothing new about their mentality.

But it is "Change You Can Believe In" as we have not seen anything like it since prohibition! So cross your fingers and just HOPE!

$1.99!!!! Damn, I'm still paying $2.65 here in Central new york.


reply to post by LeaderOfProgress

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reply to post by they see ALL

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It was a price rigging program, thats why it went from 55 dollars, to 140 a barrel in about 10 months, and back down in thirdy days or so gas went from 1.75 to 4.10 in 13 months more in some areas, i Posted on this subject early this year before gas started to raise to 2.95

reply to post by they see ALL

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It is down to $1.85.9 here in Texas was at $1.82.9 week ago, I know I have cut way back on fuel over the last year or so, more than most, but most people I know even in this small town are cutting back, and there is now a boom in golfcart sales, thaye have been declared legale to drive on city streets here.

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