So, why are gas prices falling?

[CRF450]

I just saw for the first time a station selling gas for $2.98 at another town almost 20 miles from my home. What the hell?? I was forced to drive my 16mpg gas guzzler through the whole summer with $4/gallon gas. But hey, now that my seasonal job has ended, I can rest a little easier driving my car which gets around 23mpg even though it take premium. WAAAY more affordable to drive than the truck still.

[Marsala]

1. Demand is falling

Economics 101. Less demand, prices go down. OPEC is already talking about reducing supply to compensate.

[charlie]

25. Saudis are balking

They figure $90bbl is about right and are pumping over quota to keep it there. Some OPEC members are pissed. The Saudis fear the impetus that high prices provide for replacement technologies. They figure if a country goes hybrid/electric they aren't ever going back to SUVs.

[Oceansaway]

2. election season....n/t...

[anigbrowl]

6. No. It always goes down in fall.

Check some price graphs, you'll find there's an annual cycle.

[ProdigalJunkMail]

3. easy...

economies in the dumper don't exactly lend support to petrol market prices in the 100's...with several (hell, ALL) of the major economies around the world headed into the dust bin, there won't be a need for nearly as much gas...

sP

[TurningColoradoBlue]

4. Because its election time !!!!

Its done that since 2000 ... Don't worry, they'll
be back up by the end of the year ...

[liberalmuse]

5. The oil speculators are pulling out their funds.

I think they have bigger problems right now.

[theoldman]

7. It's election time.

How much do you want to bet that the price of gas goes up after the election.

[ProdigalJunkMail]

10. if i knew you i would put $100 bucks that it won't

economies in the shitter don't use much gas...no one buys...inventories remain high...prices plummet...

sP

[skipos]

8. They usually go down before elections. nt

[snappyturtle]

19. Yes. nt

[Selatius]

9. A combination of the previous posters' responses. Election time + falling demand = lower prices.

Seems reasonable enough to me, anyway.

[HereSince1628]

11. Falling? Really? It seems I'm in an anti-gravity zone. n/t

[Richardo]

12. Prices are always lower at the end of the year - oil co's shedding inventory

...and trying to lower it's value for tax purposes.


...BTW, I really think we're being played if we think $2.98 is a "low" price for gas.

[RollWithIt]

13. Global recession equals less money, less demand for gas, lower prices....

One of the few benefits of this kind of extreme financial crisis.

[CRF450]

16. Yeah I'll say... n/t

[HysteryDiagnosis]

14. The severe gravity of the times in which we find ourselves...

I think.

[SammyWinstonJack]

15. bu$h broke the World and I bet his Saudi buddies are pissed right about now.

Where's the love? :evilgrin:

[grannylib]

17. It dropped in '04 and in '00 right before the elections too

The fucking oil companies want to hang on to their multi-billion dollar tax cuts and subsidies and they know McAnus will keep right on handing out OUR MONEY on corporate welfare.

[dweller]

18. not happening here

we are still at $3.79/gal reg. Has been that way for a few weeks, and higher before settling at that price for the last 10 days or so.

i read yesterday in Ark. it is $1 less per gal at $2.79 or less. Yet neither NC nor Ark were mentioned on the nightly news (ABC) in a story on falling gas prices.

dp

[CRF450]

22. Its way down at Texas and New Jersey too. Dunno how it is at other locations. n/t

[ProdigalJunkMail]

23. paid 3.26 in north ATL this afternoon

dropping like a stone around here... sub $3 in a week or two...

sP

[dhpgetsit]

20. They say it's all about the futures market...

I'm not sure I buy it. Remember Enron and the manipulations they pulled off?

[Myrina]

21. Speculation market is tanking along with the DOW ...

... so we may not still be paying $3.70/gal but we did just fork over $700+ BIL for gas and every-other-damn-thing we "need". :(

[Edweird]

24. Another vote for election. Plus, anyone that thinks $3/gal is low, is a chump.

That is all.

[Art_from_Ark]

32. I think $3/gal is low

but that might be because I'm paying nearly twice that price in Japan.

[serrano2008]

26. Yeah, I paid $2.81 in Kansas City yesterday

My total was only $31 or so, it was great.

I hope they keep going down. I've got a big road trip coming up the week of the election so it would be nice if it were around $0.97/gallon that week. The republican's just might get so desparate they'll make it happen.

[Hangingon]

27. Refinery inventories are high.

Gas is $2.84 a gallon tonight here.

[Dorian Gray]

28. Because the price of oil

has fallen from 140 to 80 in the last couple of weeks.

[Geek_Girl]

29. They'll go back up Opec is meeting this week to curtail production to address the decline in prices

the reason why gas prices are going down is because demand down because no can afford it anymore.

[2speak]

30. The theory of supply and demand no longer works

they just cut production now days. They can do that because of JIT (just in time delivery).

[Roland99]

31. Inventories are up, oil is coming down as investment firms unwind their oil positions, and...

demand falls in the fall/winter.

[slampoet]

33. Nothing to do with demand. Less investment in Speculation is leading to lower prices.

In other words the credit crunch on investing in all things like oil futures is having this positive effect.

[doc03]

34. Because consumption is down 7.5%, n/t