Gas Price Defy Basic Economics

[mexitucky]

We've heard for YEARS that Supply and Demand drive oil prices, and then refinement and taxes ultimately affect pump prices...interesting. ISIS has taken control of Syrian oil fields and those in northern Iraq. Wouldn't that have an impact on overall supply????? Funny, gas was under $3/gallon this week in Illinois on the drive home and now is near $3/gallon here. Diesel is at a 2 year low...interesting. Funny how elections are coming. Weren't Republicans the ones in bed w/ oil?

[BigVMan23]

We've heard for YEARS that Supply and Demand drive oil prices, and then refinement and taxes ultimately affect pump prices...interesting. ISIS has taken control of Syrian oil fields and those in northern Iraq. Wouldn't that have an impact on overall supply????? Funny, gas was under $3/gallon this week in Illinois on the drive home and now is near $3/gallon here. Diesel is at a 2 year low...interesting. Funny how elections are coming. Weren't Republicans the ones in bed w/ oil?

 

I think I have pretty much given up on trying to figure out the logic behind gas prices...simply because, well, there seems to be no logic to it. And the illogical can't be explained, so I have no clue.:idunno:

[doomer]

We've heard for YEARS that Supply and Demand drive oil prices, and then refinement and taxes ultimately affect pump prices...interesting. ISIS has taken control of Syrian oil fields and those in northern Iraq. Wouldn't that have an impact on overall supply????? Funny, gas was under $3/gallon this week in Illinois on the drive home and now is near $3/gallon here. Diesel is at a 2 year low...interesting. Funny how elections are coming. Weren't Republicans the ones in bed w/ oil?

 

I am not sure what you are asking... OPEC is a cartel and manages production and supply from the Middle East. While supply may be compromised from Syria and Iraq, it has increased from Libya. I don't believe this drop is any way driven or supported by domestic policy. In fact there are analysts who think it is exactly what our current administration doesn't want. Lower prices are contrary to conservation efforts and programs to develop alternative fuel sources, both areas where I would support the liberal theology for the record.

[Jumper_Dad]

Heard a report on the radio this morning saying that advances in Fracking Technology was playing a big part in lower oil prices. That the US was now the largest oil producer in the world.

[John Anthony]

Oil prices dropped a dollar yesterday and gas went up .25 cents. This is pure gouging and is a complete lie to their when oil goes up, gas goes up. Well, why does it go up when oil drops also?

 

I've said for YEARS, the only defense we have is a fuel efficient car. They will always control the price and keep it high. If you own a truck or a gas guzzler enjoy letting people get rich off you.

[Jumper_Dad]

Oil prices dropped a dollar yesterday and gas went up .25 cents. This is pure gouging and is a complete lie to their when oil goes up, gas goes up. Well, why does it go up when oil drops also?

 

I've said for YEARS, the only defense we have is a fuel efficient car. They will always control the price and keep it high. If you own a truck or a gas guzzler enjoy letting people get rich off you.

 

Gas in Somerset has dropped almost daily for over a week. This morning prices ranged from $2.99-3.09, last week $3.27-3.37

[mexitucky]

I am not sure what you are asking... OPEC is a cartel and manages production and supply from the Middle East. While supply may be compromised from Syria and Iraq, it has increased from Libya. I don't believe this drop is any way driven or supported by domestic policy. In fact there are analysts who think it is exactly what our current administration doesn't want. Lower prices are contrary to conservation efforts and programs to develop alternative fuel sources, both areas where I would support the liberal theology for the record.

 

I'm not saying that it is solely domestic, though I do believe that it is greatly influenced. OPEC states that oil is at $80/barrel. Oversupply??? How is consumption going to decrease? Every year more and more Chinese and Indians are driving. China doesn't have its deal done w/ Russia just yet to get a big chunk of their oil from there. If you don't believe that US has any influence on OPEC short term, then I can't convince you w/out a smoking gun. I do. Additionally, alternative fuel sources are never going to come from oil companies, or from our government, be it Republican or Democrat. It is going to come from an entreprenuer who is going to have to be commissioned by a very high power person/group to fight through the red tape that oil lobbyists will have Congress throw up.

[mexitucky]

Heard a report on the radio this morning saying that advances in Fracking Technology was playing a big part in lower oil prices. That the US was now the largest oil producer in the world.

 

We'll revisit this during January. We'll see if prices stay low.

[John Anthony]

Oil is down 20 dollars, yes 20 dollars in 2 weeks. There is no logical reason gas should be at even 3.00. 2.75 should be the peak right now.

[Jumper_Dad]

E-Town $2.67 Today WOW!!!!

 

Kentucky Gas Prices - Find Cheap Gas Prices in Kentucky

[John Anthony]

E-Town $2.67 Today WOW!!!! Kentucky Gas Prices - Find Cheap Gas Prices in Kentucky

 

Exactly where it should be. Oil is getting killed as are all stocks. We're gonna hit a decade low price for oil at this rate.

[doomer]

I'm not saying that it is solely domestic, though I do believe that it is greatly influenced. OPEC states that oil is at $80/barrel. Oversupply??? How is consumption going to decrease? Every year more and more Chinese and Indians are driving. China doesn't have its deal done w/ Russia just yet to get a big chunk of their oil from there. If you don't believe that US has any influence on OPEC short term, then I can't convince you w/out a smoking gun. I do. Additionally, alternative fuel sources are never going to come from oil companies, or from our government, be it Republican or Democrat. It is going to come from an entreprenuer who is going to have to be commissioned by a very high power person/group to fight through the red tape that oil lobbyists will have Congress throw up.

 

I am not sure that we are at cross-opinions here: as mentioned earlier by Jumper Dad, fracking and supply due to this has increased domestic production thus less reliance on higher priced OPEC production. With European demand down, OPEC's reaction was to cut prices to around the breakeven, or even below, cost for domestic production which is about $90 per barrel. This price cut gets them back in the game for export to the US who has the highest refining capacity.

 

Refined petroleum products have been the US greatest export gains in the past few years...but the crude can come from anywhere, and price will be a determinant.

 

And agreed, the impetus for alternative sources without regulatory requirements which will be virtually impossible to pass, will be painfully high prices which in turns makes alternative fuels and development more feasible economically speaking. It is guaranteed this will not be driven by the people currently providing energy products.

[Getslow]

Earlier this year U.S. production was already at its highest levels since the 1980s and is about to move into 1970s levels and beyond. OPEC price cutting has countered that and a race to the bottom has begun.

[Clyde]

Gas prices have nothing to do with elections.

[Jumper_Dad]

Gas prices have nothing to do with elections.

 

Right it's just a coincidence that gas prices drop twice as much from July to November in Election years.

 

From 1991 to 2012, national gasoline prices fell by an average of 3.27 percent each year between the July 4th weekend (when demand tends to peak) and the first week of November. During presidential election years, prices fell by more than twice as much, 7.6 percent. Factoring in congressional election years (every even-numbered year), the average price decline is 5.35 percent. The smallest effect happens during odd-numbered years, when no candidates are running for the House of Representatives or Senate, though five states do hold gubernatorial elections. In those years, prices declined by only 0.6 percent.

 

The Oddities of Election Year Gasoline Prices - Businessweek