Why are gas prices dropping so quickly?

[chefsteph07]

It amazes me the last few weeks how much gas has come down...
In my area, it is around $2.90, I saw it over the weekend in Columbus at $2.71! Whoo hoo! Although, I think I read that oil is around $79 a barrel, down from over $100 a barrel this summer, I'd think that gas would be taking a major nosedive based on the amount it's come down! Oh well, I won't complain about a dollar decrease from 3-4 months ago...

What do you think the reason for the decline is? Do you really think that people are driving that much LESS? I know we aren't...

 

[vwpamperedchef]

Amen to that, I paid $2.77 today!!
Not to sure why its on the decline, but I am not complaining!!

 

[jenne]

I'm sure it must be on the decline because people are worried about the economy...now that the governement did their deal, I wouldn't be surprised to see it go back up. I just laugh out loud when I hear the news talking about how bad it is that the oil prices have dipped so low...the 'oil crisis'...whatever!! As if ANYONE wants gas to stay even THIS high!! But they are working hard to get those barrel prices back up. All I can say is...gee, thanks. I liked the economic turmoil (in a sense)...at least the stuff I buy every day was coming to a more normal price again!

 

[DebbieSAChef]

Well I heard a really good message stating that people who are selling us oil are really shooting themselves in the foot by being so greedy. Eventually I hope we can drill in our own land and not rely so heavily on other countries.
They raised the tax prices because of the war, and then again being of the severe weather. It's all just a way to get more money. To be able to lower the prices so quickly shows that they aren't being very truthful about the prices skyrocketing.
With so many proposals going around to drill our own oil, I'm sure cutting the prices drastically makes them think we'll change our mind.

Debbie

 

[pamperedpals]

Last Friday I filled my car up at $3.19 a gallon. This Monday, I went past the same gas station on my way to work and it was $3.05. There is a gas station near my work, however, that is at $2.99 a gallon. I don't remember the last time I saw it below $3.00.

It sure helps me in the pocketbook, since I drive an Expedition.

 

[kaseydee]

$2.65 here yesterday. OPEC is suppose to be having a meeting to see about cutting back production b/c they are upset for the decline in per barrel price. Amazing! I hope KG sees this and gives us his info on what I am talking about.

 

[janetupnorth]

Go to GasBuddy.com - Find Low Gas Prices in the USA and Canada to look up local prices.

 

[Jennie4PC]

You should look up the gas prices here where I live we still have pries up at 3.71 it ticks me off so bad!!!!!. 45 Miles away it is under 3.00 and on Fri I am seriously concidering driving there to fill my tank.

 

[Kitchen Diva]

It amazes me the last few weeks how much gas has come down...
In my area, it is around $2.90, I saw it over the weekend in Columbus at $2.71! Whoo hoo! Although, I think I read that oil is around $79 a barrel, down from over $100 a barrel this summer, I'd think that gas would be taking a major nosedive based on the amount it's come down! Oh well, I won't complain about a dollar decrease from 3-4 months ago...

What do you think the reason for the decline is? Do you really think that people are driving that much LESS? I know we aren't...

$2.65 here ! all I have to say is WHOO HOO!

It's because OPEC and other oil nations are WORRIED... with the decline in the stock market, the hand out... er, Bailout- they are worried we won't drive as much or spend as much....so they are lowering it- so we'll keep pumping gas!

 

[NinaPChef]

I have pretty high gas prices... around 3.78 at the cheapest place...thank god i dont need diesel fuel!

 

[janetupnorth]

$2.65 here ! all I have to say is WHOO HOO!

It's because OPEC and other oil nations are WORRIED... with the decline in the stock market, the hand out... er, Bailout- they are worried we won't drive as much or spend as much....so they are lowering it- so we'll keep pumping gas!

WOW! ...and I was excited for $3.099!

 

[ChefBeckyD]

It was 3.11 here yesterday, and today I paid 2.96!:sing:

 

[Kitchen Diva]

WOW! ...and I was excited for $3.099!

I'd tell you to come down for the better prices here, but that's sort of counter productive...

 

[The_Kitchen_Guy]

It amazes me the last few weeks how much gas has come down...
In my area, it is around $2.90, I saw it over the weekend in Columbus at $2.71! Whoo hoo! Although, I think I read that oil is around $79 a barrel, down from over $100 a barrel this summer, I'd think that gas would be taking a major nosedive based on the amount it's come down! Oh well, I won't complain about a dollar decrease from 3-4 months ago...What do you think the reason for the decline is? Do you really think that people are driving that much LESS? I know we aren't...

It isn't really that simple, but driving less is part of the equation. This is an exercise in macro economics 101. Part of it is that we are, in fact, driving less. When oil hit a hundred and fifty bucks a barrel, people started to drive less, which increased the supply as demand went down. When the stock market began it's downward spiral, other markets in the world began to drop, too. Commodities of all kinds are also plummeting, not just oil, spending of all kinds is cutting back. With money tight right now (you can't get a loan to buy a lawn mower) everyone is freezing projects, manufacturers are building less product, so they're buying less material, material producers have cut back production, which hurts their suppliers, and right on down the line to the mines. Those people, in turn, are buying less fuel, too.Right now, there is so much oil in the market that tankers are sitting in harbors, fully loaded, with no where to unload. The result is that prices of oil have dropped, and can you see me crying these big crocodile tears for the members of OPEC who aren't getting enough cash right now? Boo. Hoo.The NYSE is starting to come back, in fact, most of the losses last week have been regained. The drop today was people taking the profits they made since Monday. Remember, the stock market has daily ups and downs as people buy and sell, but the overall trend is always up. Investing in stocks is a long term strategy, it is not for people who have short term growth needs nor is it for the faint of heart. Before anyone goes jumping out of any windows, remember old man Potter in It's A Wonderful Life. While people were panicking to sell their stock in the Building & Loan for pennies on the dollar - Potter was buying. For everyone who wants to bail out of stock because they're convinced the value is going to drop, there is someone else eager to buy it because he/she is equally convinced it's going to go up.

 

[janetupnorth]

The common phrase I hear is if you jump off a roller-coaster in motion, all you are going to do is get hurt.If you have stocks and a 401k, you can't play a daily game, you need to stay for the long run.

 

[straitfan]

Woo HOO! Just filled up my SUV for $53! With our Kroger discount $2.49 a gallon! Isn't pathetic that we think that's CHEAP!?!!?

 

[ChefBeckyD]

Woo HOO! Just filled up my SUV for $53! With our Kroger discount $2.49 a gallon! Isn't pathetic that we think that's CHEAP!?!!?

I keep correcting my husband when he says something about gas being cheap. It's not cheap. It's less expensive today than it was yesterday....but it's NOT cheap!

 

[pampermejolene]

Wow!! And I thought I was getting a deal at $3.35!! Gotta love Cali!

 

[kaseydee]

$2.59 this morning!

 

[Sheila]

It's still $4.06 here on the military base in Japan. But the island is so small, I only fill up about once a month. So it's not been that big of a deal. I'll be in for a huge shock when we are done with our 3 year tour here.

 

[pattikake]

It was $2.99 here in Vermont this morning.

 

[sk8rgrrl99]

I don't care as much about what I have to pay, I'm just super grateful that diesel fuel prices have gone down. My boyfriends Dad is a truck driver (he hauls milk and works for himself) so the gas prices have really effected him. I hope the diesel prices keep coming down too!

 

[kaseydee]

http://www.iht.com/articles/2008/10/16/business/oil.php

 

[chefsteph07]

AWWW...Poor OPEC...

 

[The_Kitchen_Guy]

Now, don't you wonder......a few weeks ago, when oil was selling for a hundred and fifty bucks a barrel, and gas was over four bucks a gallon, the usual suspects were whining about those mean, nasty, rotten oil companies that were setting the prices and making those obscene profits because they were gouging us?Where are all those big mouth whiners now? Are the prices down because the oil companies have suddenly turned benevolent? How is it those six, cigar-chomping guys (including Carl Rove and Dick Cheney) in a smoke filled room in Dallas are lowering the prices?Hmmmmmmmmm???While we're at it - where are the people who claim prices are down because it's an election year? I don't hear either candidate claiming they lowered the oil prices somehow, so I'd really like to know how it being an election year has anything to do with the price of oil?And where is Maxine Waters (Moron-California) threatening to "socialize" the oil companies?Where are all those people now?

 

[Kitchen Diva]

Now, don't you wonder...

...a few weeks ago, when oil was selling for a hundred and fifty bucks a barrel, and gas was over four bucks a gallon, the usual suspects were whining about those mean, nasty, rotten oil companies that were setting the prices and making those obscene profits because they were gouging us?

Where are all those big mouth whiners now? Are the prices down because the oil companies have suddenly turned benevolent? How is it those six, cigar-chomping guys (including Carl Rove and Dick Cheney) in a smoke filled room in Dallas are lowering the prices?

Hmmmmmmmmm???

While we're at it - where are the people who claim prices are down because it's an election year? I don't hear either candidate claiming they lowered the oil prices somehow, so I'd really like to know how it being an election year has anything to do with the price of oil?

And where is Maxine Waters (Moron-California) threatening to "socialize" the oil companies?

Where are all those people now?

Putting gas in their Jets?

 

[pamperedlinda]

Woot Woot - gas finally dipped below $3.00 in my area!

 

[Jennie4PC]

ours is now down to 3.55

 

[pamperedlinda]

I saw it for $2.88 this morning.

 

[Hathery]

We're around $2.97 for regular, but the Premium I use for my car is $3.17 or something like that (amazing considering I was paying almost $5.00/gallon a few months ago!)

 

[janetupnorth]

$2.99 at lunch!!!!

 

[MissChef]

I hope ours dips below $3.00 soon! The cheapest I've seen it is $3.04. I wonder what Costco is charging? I need to check that out the next time I'm there! The gas station (zip trip) closest to my house is still charging 3.19, but the average is about $3.09. Over in Idaho, which is about 12 miles away, it's around $2.75.

 

[gingertannery]

2.55 yesterday..

 

[kaseydee]

$2.49 today!

 

[wadesgirl]

$2.39 here today! It keeps going lower a few cents a day. The funny part is I work across the street from a Kum & Go gas station and sometimes they have been out there 2 or 3 times a day dropping the prices.

 

[khergatt]

I filled up for $2.69 this week! WOOHOO!

ChefSteph - next time you go to Columbus, let me know . . . I'm in Mansfield and I would LOVE to meet you!!!