Why are gas prices falling?

Boredstiff

How about oil refineries coming back on line. Supply is up and demand is down. It is near the end of the Hurricane season. Investors are selling their profits on futures and the prices are falling.

SuperMilkPanda

Didn't this happen last election too? Besides they always play this game.. jack up the price to a rediculus price then reduce it just a little.. then you think wow gas is down! But you are still paying way more then you where before the prices went up in the first place.

brock

Heard on the news that summer is over with and the demand for oil is down. I think its all about $.. It has plummeted to 2.18 in Oklahoma. Im not griping though...

united9198

Citgo is owned and controlled by the Venezuelan government. Their president hates George W Bush. Why do you suppose he would go along with a secret US government plan to lower gas prices before the election. He would be on TV everywhere spilling the beans.
I think you need to decide which that you believe. George W Bush is a moron who can't do anything right, or George W Bush is a genius who is able to control oil prices at will.

The real reason is supply and demand. This time around, the citizens were able to lower their gas usage enough to affect inventories. When inventories get high due to slowing sales, the price comes down. It is the rule of the marketplace and happens a lot more than you might think on commodity items. It has nothing to do with George W Bush and his genius team of cronies who are controlling the election with gas prices.

makingapost

I would have to ask you; How do you suppose these oil controlling politicians do it? Do they send a memo out telling what prices to set? Does it go thru various state and local gov'ts? Are Mayors involved? Does a police chief show up at the local speedway and tell the manager what she can charge?

No offense... BUT get real Economics mainly, situations of all kinds - the Alaskan Pipeline damage not as bad as first believed, US refineries coming back on line, etc, etc, etc.

timm1776

There have been recent discoveries of oil in the Gulf of Mexico, along with production increases from OPEC. I think these would explain the fall in prices much more than any government conspiracy.

jjthinstrips

You would think they would fall faster in Idaho, third to Alaska and Hawaii...Why do we still pay $2.92.90 for gas? I knew we were slow, but why so slow?

jeanne g

gee, you think the republicans and elections in november are a coincidence?

fr_chuck

Part of it is that summer travel is over, winter heating oil usage is not up yet and won't be till end of nov and first of Dec ( yep after the election) so it is just a natural change that almost always happen every year.

Prices go up when there is demand, and down when there is not as much demand

cwilson_192002

the election because the oil companies want republicans back in office so they can continue to rip us off. republicans are of course friends with oil companies and people like bush and cheney obviously benefit from that friendship.

Rosesharon

I think you hit the nail on the head. If you don't believe that the government controls the price and supply of gasoline then you're very naive.

quarterton2001

There are two theories.

The first one is that it was projected to be another year of active hurricane season, which thus far has not caused wide spread damage. Hence, prices are falling.

The 2nd theory, is that the major oil companies are trying to help their Republican friends, many of whom are behind the 8 ball in these up coming elections, by lowering prices to create the illusion that the economy is better than it actually is and that relief is on it's way. It is in effect, an indirect campaign contribution. I have been posting for some time in my answers for people to watch for lower gas prices as we head in to the mid term elections.

**post script Devon, Chevron and a 3rd company, as partners, hit a huge well, the well is named the "jacks # 2". This well is projected to produce 1.5 million barrels of oil a year. The reserves from which it was found is estimated to be 44% larger than the Alaskan reserves.

However, it is also estimated that it will be at least 5 years before the first drop of this oil reaches market. They are going to have to lay 70 miles of pipeline on the floor of the Gulf of
Mexico. Moreover, it will probabliy take a year or better just to get the required permits. Hence, this discovery has no effect on current fuel prices, moreover, since the United States yearly increase in fuel concumpition is at 300,000 bbl per year we will actually be at a breakeven point to our current demand.

David W

Because an election is coming up

southeastside

You're absolutely right! I'm glad that some people can still think for themselves in this country. Have you also noticed that stock prices are rising? Keep the sheep happy and they'll do whatever you want. My advice: wait 'til after the election, then buy oil stocks and short the S&P 500.

Egroeg_Rorepme

Supply>Demand.

My dad ate my homework

IDK BUT I'M LOVIN IT o/ *thats a dude raising his hands* yay us

Nicole draws in scribbles

I think it has to do with both, the election and the finding of oil. Yes, prices were up because katrina, and other government reasons, I dont completly agree with. And I think it has to do with the election.

lilbitadevil

What happens before major holidays when a lot of people are going to be traveling? Gas prices go up. Then they go back down again, but not much. It seems that before election time, a lot of things seems to get better to lure people into a false sense of security. But that is just my opinion, lol.

Bush will try to use the opportunity that Americans have gained from gas prices falling to boost the Republican party.. of no morals

johngjordan

Supply and demand, major driving season in the US is over (traditionally slows down after Labor Day because Summer is "over"), tentative peace in Mid-East (regional stability), US announcement of new oil field under the Gulf, Alaskan oil pipeline problems not as bad as BP announced...do I need to keep going?

Edit: I wanted to try to keep this from being political, but have any of the anti-Republicans that keep saying the oil companies want the Republicans to stay in office ACTUALLY HEARD A REPUBLICAN TAKE CREDIT FOR THE LOW GAS PRICES? NO? THEN STOP IMPLYING THAT'S THE REASON!!! Sorry, had to get that off my chest. Please continue.

Proud to be an American Liberal!

It is exactly because of the elections, soon it will be back up to I'd say an average $2.75. Then of course by next summer we will see the prices going up even higher and setting new records. Somebody remember this, I predict that the price of one gallon of gas in July 2007 will be......drum roll...........$3.90 per gallon. Just wait and see, I predicted $2.60 for this summer last Apr 2005, and I was way off but I was way low. For those of you with the supply demand theory, the gas usage this summer did not exceed the usage last summer. If it was supply and demand the prices would have not gone any higher than they did last year. Face it we just need to quit this dependence on foreign oil and start using alternative fuels. Check out what Honda is now offering up in the way of hydrogen energy. Not only will they power your car, but your house as well. Talk about two birds with one stone, no more dependence on foreign oil and no more dependence on filthy coal plants.

To makingapost: There are people called lobbyists, they are the direct connection between the politicians and the big oil companies. Go to congress.org for campaign donations by lobbyists and who they represent. As far as repubs taking credit, wait until we get closer to Nov 7.

jimbo

What out after 11/07/06!

Dan

becuase they just are

Valley R

Let's not look a gift horse in the mouth.

But it's because the gas companies have decided they have lined their pockets enough for awhile.

Dilyla V

why ask, thats a great thing

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