Can anyone explain (non-conspiracy) how gas prices have dropped so much?

thrawn

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Let me add to this...

iirc, light crude is trading around 60-65 a barrel right now. The gas at the pumps was purchased months ago. There is supposed to be a lag between oil prices and gas prices, suddenly there isnt?

Additionally, if you were to play the ratio game, it doesnt seem like the percent change in oil has matched the almost 33% drop in prices at the pump.

What in the hell is going on?

edit: btw, this election talk is fucking insane. Government isnt that cool, but I dont rule out collusion between the oil companies to effect the election, if you REALLY want to talk conspiracies...


if i recall, gasoline is a commodity, you pay what it would cost to replace it, not what it cost to produce.


edit> it seems i was beaten. that's what i get for going out and doing things.
 
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inphosys

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It's been nice paying a little over two bucks a gallon.

No, it was nice paying LESS than $2.00 a gallon! Now the gov't/oil producers have us conditioned like pavlovian flea bags and just keep sticking the gas pumps up our asses even further!

45,000 miles a year and climbing ... and my accountant wonders why I cry every time he hands me the latest P&L statements??!? :rant:
 

Atan Nolme

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As other people have said before, oil prices are driven by the speculators. As of this moment:

U.S. Consumption of oil was lower than predicted during the peak driving season(which is now over).
Loss of production due to hurricane activity is lower than predicted.
Supply from non-OPEC sources is higher than predicted.


So, we didn't use as much as they thought we would, and there's more available than they predicted. When the Supply is higher than the demand, prices fall. Other factors like the substitution of Ethanol as an oxidant before sufficient supply lines were in place also effected the overinflated price of gas.

The price drop isn't really anything that doesn't happen every year, this year it just got a bit out of hand.

QFMFT

Another factor: The BP Alaska Pipeline damage wasn't as bad as first reported. So instead of a complete shutdown, BP is able to fix the pipelines with only a partial shutdown.

#1 Reason

No saber rattling from President Tom, the nut job in Iran. I would put money down that even the Ruling Clerical Council in Iran is afraid of this nut job. He is a member of a sect of Islam that believes that the 12th Imam will come back. If this happens according to Islamic law they would be out of power. I am sure that the Ruling Clerical Council in Iran doesn't want to give up their power. Hell even Ayatollah Khomeini out lawed this sect once he was back in power. HE had members assassinated.
 

Floptical

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QFMFT

Another factor: The BP Alaska Pipeline damage wasn't as bad as first reported. So instead of a complete shutdown, BP is able to fix the pipelines with only a partial shutdown.

#1 Reason

No saber rattling from President Tom, the nut job in Iran. I would put money down that even the Ruling Clerical Council in Iran is afraid of this nut job. He is a member of a sect of Islam that believes that the 12th Imam will come back. If this happens according to Islamic law they would be out of power. I am sure that the Ruling Clerical Council in Iran doesn't want to give up their power. Hell even Ayatollah Khomeini out lawed this sect once he was back in power. HE had members assassinated.

Don't forget prior to the Imam returning 1/3 of the population has to be cleansed or purged...however you want to look at it. But man does that Ahmadinezhad like to wear his members only jacket.
 

JAXvillain

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QFMFT

Another factor: The BP Alaska Pipeline damage wasn't as bad as first reported. So instead of a complete shutdown, BP is able to fix the pipelines with only a partial shutdown.

#1 Reason

No saber rattling from President Tom, the nut job in Iran. I would put money down that even the Ruling Clerical Council in Iran is afraid of this nut job. He is a member of a sect of Islam that believes that the 12th Imam will come back. If this happens according to Islamic law they would be out of power. I am sure that the Ruling Clerical Council in Iran doesn't want to give up their power. Hell even Ayatollah Khomeini out lawed this sect once he was back in power. HE had members assassinated.


iran accounts for far too little of the worlds' oil supply to be able to artificially inflate the prices in any manner
 

inphosys

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fuck that. I've been to new jersey a number of times in the past few years and having someone pump my gas got on my damn nerves

It's annoying ... but at least the homeless have jobs. Unlike Savannah! Come visit, I'll introduce you to the couple thousand indigent that stand in our "beautiful squares" every morning while they wait for the soup kitchen to open.
 

thrawn

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It's annoying ... but at least the homeless have jobs. Unlike Savannah! Come visit, I'll introduce you to the couple thousand indigent that stand in our "beautiful squares" every morning while they wait for the soup kitchen to open.

savannah...chicago...jersey, they all suck