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

Can you say the Bush and Republican controlled congress is up poop's creek without a paddle? With approval ratings in the low to mid 30's they are appealing to their owners to lighten up on their rape and plunder of us just long enough to give them a chance of winning...its cheaper than another 9/11 but just wait until after election day....the prices will go up in time for winter... don't ya just love compassionate conservatives?

Grover.. that's what I've been saying all along.. It's a farce.. it's a joke.. It's just TOO coincidental that it happens now.. when the elections are coming.. It's been this way for YEARS.. and didnt change then..

I don't know how long you've been buying gas, Ox, but the spike in gas prices that everyone is experiencing now was the result of massive damage to the oil and gas infrastructure. Yes, the price of gas has been rising for years, but then so has everything else.

Youre right... EVERYTHING energy based (and everything else) has been raised.. But.. now it's dropping sharply?
There is a gas station not quarter mile from my house, in the last week gas has dropped from $2.80 to $2.29 a gallon... Has the price of oil per barrel dropped sharply? Not really.. It's dropped.. but not that dramatically

Originally posted by Ox
I agree with Nerdling.. Everything that is going on right now.. All the "incidents" on aircraft that are being magically foiled by massive teams of Air Marshals that JUST HAPPENED to be on the flights.. Oil prices dropping.. etc etc.. are just Political moves by the Republican controlled Government to try to give them a boost in November.. As also pointed about by Nerdling.. Oil companies favour the Republicans.. usually because they ARE partners or at one time HAVE BEEN partners with someone in office...

The Republicans are scared.. and they should be, they know if they lose controll of Congress then the "War of global radical Islamic extremist terrorists" will END... The "War in Iraq" will end. And Bush will more than likely be impeached..

Oh get real, your giving the US Government (dem or rep) way to much credit. People like to talk, you can't keep a secret like that. If the govt were setting up airplanes for take downs the press would have a field day. Besides most of the work was done by the BRITS, not Americans in the recent terror attempts that were stopped. I might by a little gas price fixing near the election, but lets not get our ideas to wild.

Furthermore, the democrats haven't said anything about ending the war on terror or ending the war in Iraq. They certainly won't cut out of Iraq any time quickly. First it would be tantamount to saying, "2500 Americans just died in vain", which would be political suicide the next time around. Now they may give the new Iraqi government a time line to get ready to defend themselves while we slowly pull out. But, hell, even Nancy Pilosi has suggested we keep alot of forces AROUND Iraq encase we have to get back in and help the new government out. Nor do we want to abandon Iraq to Iranian support (which is what would happen). And Iran is the big problem in the Middle East. They are in large part behind the Iraqi insugency. They are the ones develping nuclear weapons. They are the ones threatening Isreal, and supplying Hezbollah. We are in the Middle East for a long time (even if we aren't directly in Iraq), because of Iran, and the Democrats know this as much as the Republicans.

I am real... and I am not giving the government too much credit.. I believe this is happening..

And yeah people talk... unless order otherwise to do so... and which patriotic fool that believe's they're helping the cause is going to spurt out what's going on....

And it's mainly the British eh?? well... here's a link.. view down to the second reply and let me know how many of the flights concerned.. were british and how many time an American state is being mentioned

source

Now.. if these foiled incidents on airlines across the country had been real.. the TSA and Dept Homeland Security would have changed the rules again.. but they havent.. why? Cause it's HORSE @*#&.....that's why

Lord this place is an insane asylum. When gas prices go up it's because the oil companies, Bush, and Republicans are evil. But when prices go down, it's because the oil companies, Bush, and Republicans are evil.

Yes, it is an insane asylum when energy and gas prices are used as leverage to influence poll numbers and public opinion. To think this is just supply and demand, market driven price fluctuations is extremely naieve.

Another reason I feel like I'm in an insane asylum; some people worship the authority figures so much, they can't see the transparent manupulations of the patients. "One flew over the Cuckoos nest"

Ok.. so this thread is split, is this an election thing.. yes... no.. My opinion.. Yes.. Why? well, a month ago I was paying about $2.90-ish a gallon, now on the 11th of September I'm paying $2.06.. Oh and I live in a "swing" state... So, I have to say YES, it's due to the elections, no doubt in my mind.

Today, if I heard right, the price of a barrel of oil closed at $66. It hasn't been that long ago that the price was at $70 and predictions were for $100 a barrel. I think that if politicians could control the price of gasoline, we'd have $.25 gasoline, just to keep us happy.

There are many forces affecting gasoline prices, not the least of which was last year's hurricane season that devastated the Gulf Coast from East Texas to Mobile Bay. A crippled infrastructure can never be a good thing when it comes to gasoline prices.

If you will go here, futures.tradingcharts.com... you will see that oil has broken support for the short term.

The next support is around 60$. If it breaks this down to 55$.

YMMV

Roper

BTW, unleaded gas in taking the same route.

Originally posted by Roper
If you will go here, futures.tradingcharts.com... you will see that oil has broken support for the short term.

The next support is around 60$. If it breaks this down to 55$.

YMMV

Could you expound on that, please?

As long as you promise not to short the market on my word.

Roper

What's not right is thinking oil has to play such a huge part of our "way of life".

But, I digress...I think oil inventories are up, recovery from any infrastructure storm damage has been ongoing, future oil disruptions are fading (hurricane hits, Iran hype, etc). All this means lower pump prices, to a point...when OPEC will make sure price doesn't go lower.
People I know have been driving a lot less, buying hybrid cars. The air quality around here has been better than in past years, making me think less gas bought, inventory up, price bound to go down a little on that alone. Hey, BP seemed to have no affect on West Coast as predicted--gas has gone down here, too.

I'm cynical, but here I have to say there are reasons for gas to go down other than an election ploy. However, could very well be pounced upon at election time as "Look what we did, look how great everything is now!" One hitch, "they" didn't bring prices down, (rather we're still addicted to oil!), all the gas $ piled onto credit cards needs to be paid off, so I doubt the average driver will see themselves as having extra money.

Simply put, the market fundamentals are starting to catch up to oil and gasoline prices. We're seeing the geopolitical concerns being overridden by the supply and demand side of the equation for oil. I've got to go to work and I don't have time to fully explain these, but I will list reasons why I think oil should be declining:

1) The US petroleum industry has only recently reached 100% capacity in the Gulf of Mexico. We were at around $55/barrel before the hurricanes, and I think that's about where we are headed now. Maybe a bit lower.

2) Highest US oil and gasoline commercial stockpiles since 1998 (when oil was $10/barrel). The markets had been ignoring this one for quite some time, but the evidence of ample supply is beginning to become overwhelming.

3) OPEC contemplating production cuts. Normally, this would signal higher prices. In this case, it signals that they can meet world oil demand at lower levels of production. There's been a huge premium built into the price over the fear that oil demand may outstrip supply, but if OPEC can cut supply and still meet demand, that premium will evaporate. This is why OPEC chose to maintain output, despite crashing prices; they know the price decline is inevitable and they're trying to get theirs while they can.

4) Anyone notice when the prices started falling? I did. It happened right as the Israel-Lebanon conflict reached an end to major hostilities. A big signal was sent to the markets by everyone in the Middle East: Cooler heads can prevail even in the face of a very serious crisis. Again, another huge fear premium was eliminated.

5) Earlier this year, the US began blending gasoline with ethanol. Problem was, there wasn't enough ethanol to go around. The spike in ethanol prices earlier this year makes that in gasoline look very tame by comparison. This price spike was felt at the pump. Ethanol that had been trading at $1.35/gallon in the middle of 2005 was trading at over $4.00/gallon a year later. Thankfully, it has moderated recently.

www.energy.ca.gov...

6) The world economy, which had been undergoing a very rare simultaneous expansion, is beginning to cool off, signalling an expectation of less demand growth for oil and gasoline.

7) Excess daily production of oil worldwide is beginning to increase. It was about 1M barrels at its low point, but has expanded to around 1.7M currently.

The are more reasons, such as a higher interest in alternative fuels, an active conservation of gasoline by consumers (SUV and light truck sales are down in the US), new oil fields coming online, etc. Something could go wrong to send it right back up, but with the fear premium playing such a big role in recent years and with nothing truly disastrous happening, that fear premium is beginning to weaken and the market fundamentals, which have never been that bad, are beginning to take over.

Well this guy thinks gasoline will be a buck 15. seattletimes.nwsource.com...

I still think it will hold at 60$ and trade sideways for a while. The thing is prices go up slowly( I know it didn't seem like it) and when the mkt breaks drops fast. Light and bent crude are in a free fall.

BTW Gold did something of interest today. But I need to study the charts some more before I open my big mouth.


Roper

Glad I don't own gold!

I think the economy is starting to get back to some sort of normal. What ever that is.

Roper

my opinion is that we will be going to iran, and the hitler reencarnate will, will gang up on u.s. forming a league of nations against us. this man plans to cut us off of oil and now the gov. is starting to use its resurves, soon we will be going to iran, if any more nations follow this hitler. he is doing exactly as hitler would do. this low price stuff is politics. im sick of politics. i have a good question for you all, what does all this have to do with cuba? this baffles me, what is over there?

There is not enough US oil reserves to cause this type of sell off.

The US will not be going into Iran. Not in the near future anyway.

Roper

ROPER AND EVERYONE ELSE, in one year or less the u.s. will go to iran. where do you think alot of our oil comes from anyway? you know how many oil tankers i saw over there, some bigger than some of our largest battleships overseas. if iran joins forces with other nations that supply us with oil , we will go to iran and that is what this hitler reencarnate will do.(join forces with nations to wage an oil battle to bleed u.s. dry.) where do you think our oil is? what, in the U.S? next to nill. canada, not enough. where? gulf of mexico, by that huge oil find that they put in the news, good luck, still not enough. sure the combined oil of here and over there, yes. so tell me, where is over there? you think chevron, mobil, and exon to name a few, get all their oil from these places, no. they buy oil at dirt cheap prices and ship it over here in large tankers to take up the (slack). why do think we have peace talks over there?what ,so that they caint beat us up?, so to speak., good luck. have you ever been to california or new york. these ports take in vast amounts of oil. other ports do too, but not as vast as those. have you ever been overseas and seen anything first hand, not the news, see it , over there, for yourself. i dont know how long it would take for these nations, (if enough got together), to bleed us dry,sure, it might be a couple of years, but in the mean time gas and oil will skyrocket causeing major havic in the u.s. . no oil, no transportation , no food. so where do you think your going to get your next meal when you have no gas? wellll, stop off at your local farm grower on your bicycle with a shotgun to pick your favorite vegetable. farmers will use other means to plow the fields not gas and oil. and for us poor peoples in the winter, snow season. see my point. not good. thats why we deal with some of these other nations, cause they have what we need to keep us going, cause we do not have the capabilities, and enough oil to sustain U.S.A. understand , it is a chain of events and at the top is oil. they know it, we know it, thats why we do what we do.

[edit on 15-9-2006 by littlebird]

[edit on 15-9-2006 by littlebird]