Why is gas dropping in price?
It was $3.69 three weeks ago and now it is $2.85.
Not complaining but it seems kinda fishy
If the economy is tanking ......why is gas...
by yknot 20 Replies latest social current
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stillajwexelder
The laws of supply and demand - people save money , drive less, there is more gasoline so prices drop
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stillajwexelder
the only strange thing is why the dollar is strengthening
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stillajwexelder
oil is priced in dollars - as the dollar strengthens the price of oil in dollars weakens
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stillajwexelder
oil hit 147 dollars per barrel at peak - it is now 88 dollars per barrel
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yknot
perhaps the overlords are showing gratitude for the massive bail-out....
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daniel-p
$2.85? It's $3.50 out here in California. Anyway, don't worry, this is just a slight respite from permanently increased gas prices.
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yknot
Ahhh California with all it's environmental taxes.....
I am in
TexasSyrian Arab Republic....(*wink*) -
PrimateDave
Word on the street is that there will be recession in the economy, so the traders figure on decreased demand for petroleum products in the coming months. Also, it seems that the media focus has shifted from fear of oil supply disruption (for example: possible attack on Iran and hurricanes in the gulf) to fear of credit markets freezing up. Institutions facing cash flow problems may have to liquidate their positions on the commodities markets. If that happens enough, commodities such as crude oil futures will drop in price. So, we could see even lower prices before too long.
However, lest we forget that what goes down can also go back up. We may very well be at the all time historic peak in conventional crude oil production. A near term recession could mask the symptoms of the start of global oil production decline. It could also discourage much needed exploration and development of new reserves to replace fields already in decline (example: Cantarell in Mexico; North Sea). Depletion is inevitable, but a smoother decline curve may help the transition to a steady state economy.
Consider the drop in gas prices to be a short reprieve while still making plans for a future less dependent on oil.
Dave -
Satanus
The speculators got out of oil and into other stuff, like stocks in those nearly dead corps.
S