Gas prices fall from highest to lowest in 6 months... hmm

[Fosco33]

On/about mid-July - average gas for a gallon in the US was about $4.11.
Less than 6 months later, the price is at a 5 year low of about $1.75.

How could this happen?

Experts say drop in crude prices and demand... - well no shit.

But does the August and October drop in miles driven really equate to a 57% drop in less than 6 monhts?

Is it just a huge coincidence with our national elections and the timing of the precipitous drop after Obama got in office?

I'm not typically one to think about conspiracy theories - but it wouldn't surprise me if someone with ties to the Democrats had a hand in artificially driving crude oil higher in order to ruin a fair election. Are we just puppets/sheep?

Anyone else have a theory? Summer hurricanes, drop in India-China demand, etc. To me - it's always artificial pricing.

[arcilite]

supply and demand

[MJZiggy]

I think it has to do with what the oil producers thought they could get away with, then when banks started collapsing they realized that the prices wouldn't hold. I'm thinking they started producing more. (and there's another oil field about to be tapped).

[bobblehead]

supply and demand

duh, the global economy went in the shitter, ya think the demand dropped just a tad??

[Fosco33]

The economy has been on the decline for a year - yet prices were going up at record rates for 6 months. The high prices knocked down demand - but only in August (after/during the bank failures) when the stock markets fell (which hit global markets). I'm just shocked that banks over-extending themselves has impacted so many industries.

I'm just shocked at the rate... a dollar since Obama has been in office. Record drops. When will consumer goods follow suite?

I'd like a nice drop in general prices of everything - and would love housing prices to continue to return to where they should've been before the fake increases.

I'm thinking of buying back into oil sometime in February when demand should increase and California moves to their summer blend.

[oregonpackfan]

I'm just shocked at the rate... a dollar since Obama has been in office.

Obama hasn't been in office yet! He is still the President-Elect, not the President.

[Fosco33]

I'm just shocked at the rate... a dollar since Obama has been in office.

Obama hasn't been in office yet! He is still the President-Elect, not the President.

You know what I mean. Bush has been quite lame for the past year - and Obama is getting security briefings, making appointments, getting transitioned. He does have influence - even as -elect.

[Fosco33]

NPR is setting me straight - nothing like fair, balanced responses... :roll:

http://www.npr.org/templates/story/story.php?storyId=6151378

[HowardRoark]

Oil became an asset class that became a bubble. Just like tech stocks, tulips, and now the Treasury Bond. The supply and demand would put it somewhere between $55-$75.

[Jimx29]

I'm pretty sure it has something to do with an article that I read this summer just before the prices leveled off, and then dropped to where they are today.
The article showed that over the previous 12 months, the total miles all Americans drove was somewhere in the 5 BILLION miles less than average, and it then showed how much gas taxes for road upkeep, etc... that the fed and local governments were not getting because if the lower miles driven. That figure was understandably HUGE.
It was only like 2 weeks before the prices started dropping.


i'm just saying....... :?

[Partial]

I've heard that it doesn't take a big decline in demand to have a huge effect on cost.

[sheepshead]

"Is it just a huge coincidence with our national elections and the timing of the precipitous drop after Obama got in office? "


Holy Shit this is scary how much the media and Barry's signage has an effect on people.

[sheepshead]

Besides, George Bush and Dick Cheney got all the money they need now so the prices have come down.

[Cheesehead Craig]

Besides, George Bush and Dick Cheney got all the money they need now so the prices have come down.

:lol: :lol: :lol:

[texaspackerbacker]

The whole economic "crisis" was/is a sham.

To the extent that the problems are real at all, it is because the media hoodwinked people into thinking there was a crisis and acting accordingly.

Decreased demand? Yeah right! who do you know that was driving less, using less air conditioning/heating in their home, etc. The same factors internationally--more cars, more factories, higher standard of living in general in India, China, and the capitalist part of the third world are still in place.

So what is different? Well, the timing of the whole thing is extremely coincident with the Bush Administration commitment to drill off-shore. Also, even though the "drill baby drill" people didn't win the election, the polls showed the popularity of their viewpoint to the extent that even Obama and the environmentalist wacko Dems started at least saying they were for more drilling. Everybody knows this crap about 5 or 10 year lag time before production occurs is bullshit. THIS is what brought the turnaround.

[SkinBasket]

Feels nice to fill up on $1.57 gasoline, topping off at less than half what it cost for a tank 6 months ago. I've been driving non stop this past four days just because it feels so good to burn cheap gas. I might go rent a hummer just because it's more efficient burning more gas in less time.

[Cheesehead Craig]

Feels nice to fill up on $1.57 gasoline, topping off at less than half what it cost for a tank 6 months ago. I've been driving non stop this past four days just because it feels so good to burn cheap gas. I might go rent a hummer just because it's more efficient burning more gas in less time.

Or maybe a nice conversion van. They burn a lot too.

[bobblehead]

I'm pretty sure it has something to do with an article that I read this summer just before the prices leveled off, and then dropped to where they are today.
The article showed that over the previous 12 months, the total miles all Americans drove was somewhere in the 5 BILLION miles less than average, and it then showed how much gas taxes for road upkeep, etc... that the fed and local governments were not getting because if the lower miles driven. That figure was understandably HUGE.
It was only like 2 weeks before the prices started dropping.


i'm just saying....... :?

Nope, supply and demand is dead, just ask barney frank. Anywya partial, you are right, when the supply demand is a SMALL shortage and the demand drops off it has a HUGE impact. Especially when we are talking something like oil/gas where the global demand and supply don't shift very easily.

[Tyrone Bigguns]

Tex..will you please let the big 3 know that their crisis is merely a mirage. Also, could you tell that to AMEX and the rest of the companies that were classified as banks to allow them to benefit from the bailout.

Oh, and if you could let Citi know as well, i'm sure they would appreciate your insite into the crisis.

P.S. Also, let the banks know as well...since they are now requiring more money down for a car. My buddy didn't buy a car when they required money down and he has a 700 credit score.

[SkinBasket]

P.S.

what's with you and all this "p.s." shit in every one of your posts all the sudden. You been watching too many Renee Zellweger movies in your time away from the forum, I think.

[Tyrone Bigguns]

P.S.

what's with you and all this "p.s." shit in every one of your posts all the sudden. You been watching too many Renee Zellweger movies in your time away from the forum, I think.

P.S....fuck you.

[SkinBasket]

P.S.

what's with you and all this "p.s." shit in every one of your posts all the sudden. You been watching too many Renee Zellweger movies in your time away from the forum, I think.

P.S....fuck you.

Just avoid Cold Mountain. It's very sad and might harsh your post election mellow.

[Zool]

P.S....fuck you.

I saw that movie, but that was Renee Cumswigger I think.

[Tyrone Bigguns]

P.S.

what's with you and all this "p.s." shit in every one of your posts all the sudden. You been watching too many Renee Zellweger movies in your time away from the forum, I think.

P.S....fuck you.

Just avoid Cold Mountain. It's very sad and might harsh your post election mellow.

You had me at gloating.

[texaspackerbacker]

Tex..will you please let the big 3 know that their crisis is merely a mirage. Also, could you tell that to AMEX and the rest of the companies that were classified as banks to allow them to benefit from the bailout.

Oh, and if you could let Citi know as well, i'm sure they would appreciate your insite into the crisis.

P.S. Also, let the banks know as well...since they are now requiring more money down for a car. My buddy didn't buy a car when they required money down and he has a 700 credit score.

Tyrone, a liberal like you who goes to bat for the common man--theoretically--should know better than most people, that all the examples you cite have hardly an iota of effect on normal common people.

The possible exception might be the car makers, who would drive up unemployment severely if they went out of business. Even that, however, probably wouldn't happen, as most of the factories would likely be bought up at fire sale prices by Jap and Euro car makers--retaining most of the workers. And WHY are sales down so much for cars? Because so many people believed the bullshit put out by the media, and avoided buying--or maybe bought foreign.

As for the banks, do you REALLY think any of them failing would have any significant effect on common people? Credit is still available--and would have been without the bail out, contrary to the crap spewed by the media.

Do you know anybody who's suffering? Does anybody in here know anybody that is suffering? There are very damn few, and the ones who are probably have their own micro-economic problems that would have bit them in the ass in any economy.

[Tyrone Bigguns]

Tex..will you please let the big 3 know that their crisis is merely a mirage. Also, could you tell that to AMEX and the rest of the companies that were classified as banks to allow them to benefit from the bailout.

Oh, and if you could let Citi know as well, i'm sure they would appreciate your insite into the crisis.

P.S. Also, let the banks know as well...since they are now requiring more money down for a car. My buddy didn't buy a car when they required money down and he has a 700 credit score.

Tyrone, a liberal like you who goes to bat for the common man--theoretically--should know better than most people, that all the examples you cite have hardly an iota of effect on normal common people.

The possible exception might be the car makers, who would drive up unemployment severely if they went out of business. Even that, however, probably wouldn't happen, as most of the factories would likely be bought up at fire sale prices by Jap and Euro car makers--retaining most of the workers. And WHY are sales down so much for cars? Because so many people believed the bullshit put out by the media, and avoided buying--or maybe bought foreign.

As for the banks, do you REALLY think any of them failing would have any significant effect on common people? Credit is still available--and would have been without the bail out, contrary to the crap spewed by the media.

Do you know anybody who's suffering? Does anybody in here know anybody that is suffering? There are very damn few, and the ones who are probably have their own micro-economic problems that would have bit them in the ass in any economy.

The common man isn't affected? Oh, lord. You really are outta touch.

Credit? Really. So, my example of a common man being asked to put down money despite a good credit score doesn't affect him? :roll:

Suffering. I guess all those people out of work are hunky dory.

[texaspackerbacker]

I'm not sure how much money down you're talking about, but it's a fairly recent phenomenon that people could get 100% financing even with good credit. Some (not me) would argue that credit that easy is part of the problem.

As for factory closings--the direct reason for the unemployment, what do you attribute that to?

I blame several factors: the most immediate is the reality part of the slowdown in demand for products and services--due mainly to people believing the tons of negative crap put out by the media--and not buying things like they otherwise would. Over the slightly longer term, though, it is the insidious left wing policies that have put American businesses at a competitive disadvantage to those moving overseas--silly environmentalist shit, high corporate taxes, intrusive regulations of all sorts, false negativity about American-made products, etc.

The point is, the unemployment has little or nothing to do with the banking "crisis", the real estate/mortgage "crisis", etc. To the very limited extent that problems do exist, the cause is the media conning people into false panic.

[LL2]

Even as the OPECkers reduce production by the biggest amount to date the price of oil continues to drop. They were swimming in money just a few months ago, and now Iran and Venezuela are desperate to get prices back up as their economies are hurting. Chavez was going around talking like a big shot and disrespecting the U.S. and threatens companies that had leases in his country. I hope oil keeps dropping and Chavez and Ahmadinejad can fuck themselves!

http://money.cnn.com/2008/12/17/markets/oil/index.htm?postversion=2008121712

[texaspackerbacker]

The better question is: Why did oil prices go up so much previously? The current decline could be looked upon as mostly a correction from the unrealistically high prices before.

I never bought the idea that demand from America, as well as China, India, and the third world drove the price up, and I don't buy the idea that decreased demand from this contrived and mostly phony economic "crisis" have brought the price of oil down.

The timing coincides exactly with the Bush Administration OKing off-shore drilling--even though the leftists in Congress mostly gutted that by limiting the drilling to over 100 miles off shore. Just the gesture, along with Republicans making of big deal of "Drill Here and Drill Now" and even the Dems caving to public opinion enough to give lip service to the idea may have triggered the drop.

I see some kind of a conspiracy here, though--how exactly, and by whom I can't pinpoint--to hurt Republicans and help get Obama elected. You wouldn't think the oil companies would favor that, and they would be in the strongest position to influence things. Maybe foreign oil interests, maybe some other sinister sub-surface liberal force, I don't know. But as somebody said, the horrendous rise during the presidential campaign and then drop right after is just to coincidental to swallow.