T Nation

Gas Prices

Can someone tell me why gas has come down so much. I am tired of hearing the bullshit excuses they give us for the gas hike. Now it’s under 2 dollars a gallon, wth fuck.

Secret crude oil supply under tom cruise’s mansion.

[quote]softail wrote:
Can someone tell me why gas has come down so much. I am tired of hearing the bullshit excuses they give us for the gas hike. Now it’s under 2 dollars a gallon, wth fuck. [/quote]

WHAT?!

2 dollars a gallon!? Fuck… I still pay fucking 1,09 euros per LITER goddamnit… That’s more than 3x as much.

And why are you whining about LOW gas prices? Better stock up a few thousand gallons now.

[quote]softail wrote:
Can someone tell me why gas has come down so much. I am tired of hearing the bullshit excuses they give us for the gas hike. Now it’s under 2 dollars a gallon, wth fuck. [/quote]

It is rather amusing that gasoline hits a record 2-year low while we are going through difficult economic times.

Like they just flipped a switch…

Fucking sham is what it is.

They just discovered a buttload of new oil. Their also realizing that its not made from dead dinosaurs after all. Oh yeah, and its a total manipulation. There never was a gas shortage.

Its funny how when our economy was good over the summer, we got raped at 5 dollars a gallon. As soon as we hit this slump, it dropped back to the same price it was at 5 years ago.

The oil companies may also be trying to give us a false sense of control so we don’t start drilling in our own country and converting to natural gas. As soon as they legislate against drilling, it will go back up to 5 bucks. Just a thought to consider.

Gas around here has gotten down to $1.48 in some places.

I can fill up for less than $25 now, when just a few months ago it was pushing $60.

I’ll enjoy it while I can.

[quote]softail wrote:
Can someone tell me why gas has come down so much. I am tired of hearing the bullshit excuses they give us for the gas hike. Now it’s under 2 dollars a gallon, wth fuck. [/quote]

It has fallen because the speculators got caught in a bad market. The economic problems are spread pretty much world wide. Things slow down and people don’t need as much oil any more.

When demand dries up, prices go down.

It’s only a “sham” to those too lazy to pay attention.

The thing I find funny about this is, the fact ‘everything’ went up because of gas prices, so that should mean ‘everything’ should also come down now too, that’d be help to the economy, no???

I am glad to come home after a 3 week vacation to see that it cost less than half to fill my tank.

[quote]LJ4174 wrote:
The thing I find funny about this is, the fact ‘everything’ went up because of gas prices, so that should mean ‘everything’ should also come down now too, that’d be help to the economy, no???[/quote]

It absolutely would help the economy, but nobody (read congress) is willing to wait for it to happen. We are seeing a drop in food prices at the same time, all a result of falling gas prices. Retail will soon follow, and while profit margins remain unchanged or increase.

If one really wanted to stimulate the economy they would institute a permanent, large tax cut on diesel. Give the truckers a break and sit back and watch how beneficial it is to retailers and consumers.

To quote RJ when the economy first started its tailspin, “It’s the gas prices, stupid.”

It should be noted that stabilizing gas prices obviously won’t fix everything, but it would have gone a long ways on its own at preventing the downfall of the financial industry from making its way into the rest of the markets.

When things start turning around demand will pick up again, but we are not likely to see the rampant speculation that led to $140/barrel oil. Prices at the pump will likely stabilize somewhere between $2 and $2.50.

Also let this be a lesson that OPEC has immense control on the entire world economy. Now more than ever is the time to start domestic drilling, as well as ease restrictions on coal and nuclear. The markets will introduce alternatives as they become viable.

[quote]rainjack wrote:

When demand dries up, prices go down.

It’s only a “sham” to those too lazy to pay attention. [/quote]

RJ,

Has demand decreased in Texas? It certainly hasn’t in the Northern Midwest.

Lazy has nothing to do with it.

Because Obama is going to save the universe, duh.

The price of oil around 150$ a barrel was unsustainable, it was a speculative bubble that was popped by reality.

When gas hit 4 dollars a gallon there was a shift in driving habits that reduced demand, this would have led to modest decreases in gas prices but the fear of credit markets going into meltdown drove home the fact to speculators that the economy was not going to be growing it’s demand for oil.

The oil speculators get scared (along with the rest of Wall Street) and they sold their positions rapidly and brought about a rapid decline in price.

I think you can safely use the word “crash” to describe it.

[quote]Polish Rifle wrote:
rainjack wrote:

When demand dries up, prices go down.

It’s only a “sham” to those too lazy to pay attention.

RJ,

Has demand decreased in Texas? It certainly hasn’t in the Northern Midwest.

Lazy has nothing to do with it.

[/quote]

Well I know I am considering trips to Austin now, where I would never have considered it a few months ago.

And I would think my demand has gone down, because I bought a fuel efficient car, so I don’t have to drive my gas hog all the time. But now, the gas hog gets used a little more.

Obviously I cant speak for everyone, but at 4 dollars a gallon, I can only imagine it was in the back of everyones head.

Supply and demand. And yes, it is a manipulated market, as is any market.

In fact, in having lunch with a few people at ConocoPhillips today, I heard the major players are speculating super high jumps again for about six months after Christmas. China will be a factor as will OPEC and the typical price hike during the summer. Be ready for it.

Oil, at least here, is a private industry and the oil companies are businesses out for profit. They find the level of highest returns and go with it.

OPEC does cut and manipulate production to keep supply in control and the US can’t do anything about it.

You have three basic areas in oil. Upstream, midstream and downstream.

The upstream companies pump it out of the ground and sell it to the midstream companies for a profit.

Midstream companies refine and process the oil then send it to the various gas stations or other downstream companies for profit.

Gas stations sell it to you for profit. All along the way, you have speculators buying and selling the oil to get as high a return as possible, just like with any commodity.

I still think it’s funny that people in the US always complain about gas prices, without realising that here in Europe we easily have to pay twice as much.

[quote]Sick Rick wrote:
I still think it’s funny that people in the US always complain about gas prices, without realising that here in Europe we easily have to pay twice as much.[/quote]

That sucks for you but we don’t really give a shit.

We know a few years ago gas was like $1.50/gallon and, though it is getting close again, it has been between $2.50-$5.00 lately. The difference in our cost is what we care about.

Its called a ‘racket’.

[quote]Sick Rick wrote:
I still think it’s funny that people in the US always complain about gas prices, without realising that here in Europe we easily have to pay twice as much.[/quote]

Europe is also smaller, has better public transportation, and doesn’t have government regulations that discourage automakers from building cars with better gas mileage.

demand may have “been” down, but now that it’s cheaper people will go back to their old driving habits and not think much of it. So, prices theoretically should go back up.

How come they didn’t go up so fast a few years ago? and it’s only been in the recent few years that prices have become insane, and now only to normalize :shrug:

say what you will, but there’s gotta be bigger factors at play than what some have mentioned.