Gas prices down, but you don't hear a whole lot about it

[VTGreg]

http://articles.moneycentral.msn.com/News/GasPricesStartToDipUnderTwoDollars.aspx

I would think with as much as the cost of gas has impacted everyone over the past few years that there would be more fanfare with prices dropping. Instead, most of the stories I have seen focus on how crude is dropping very quickly but gas isn't dropping nearly as quickly.

I guess there always has to be some sort of controversy or conspiracy to sell papers.

[Prngr44]

I read a commodities "expert" report yesterday who said the price of oil will top $150/barrel in 5-10 years. I think it'll be considerably higher, but not near that high.

[MikeD]

http://www.gotapex.com/1141085-post392.html

[mcs328]

I hear about it on my local news channel. Expected to hit 2 bucks.

[YellowCoffee]

I read a commodities "expert" report yesterday who said the price of oil will top $150/barrel in 5-10 years. I think it'll be considerably higher, but not near that high.

Hard to predict the future. $150/barrel in 5-10 years? I can't see how it would even get near that high. That's close to a x3 increase in value for crude? The only way we'd get that high is if we go through a recession and if even more geopolitcal tension rises consistently from now til then.

[Prngr44]

Hard to predict the future. $150/barrel in 5-10 years? I can't see how it would even get near that high. That's close to a x3 increase in value for crude? The only way we'd get that high is if we go through a recession and if even more geopolitcal tension rises consistently from now til then.

The biggest reason he cited was the rising consumption of oil in China/Asia since they're on pace to outuse even us in that timeframe. I'm hoping the development of alternative energies keeps demand somewhat in check. That's the only way I see that prediction NOT coming true. (And one of the biggest reasons I'm hanging onto my flex fuel vehicle.)

[MikeD]

The biggest reason he cited was the rising consumption of oil in China/Asia since they're on pace to outuse even us in that timeframe.

The Saudis came out this week and pledged to boost production by 40% by the year 2009, to offset this very issue.

Not sure if they can do it or not, but that was part of the reason prices dropped so quickly.

I'm too lazy to search for the link now, but will if anyone wants to read it.

[YellowCoffee]

The biggest reason he cited was the rising consumption of oil in China/Asia since they're on pace to outuse even us in that timeframe. I'm hoping the development of alternative energies keeps demand somewhat in check. That's the only way I see that prediction NOT coming true. (And one of the biggest reasons I'm hanging onto my flex fuel vehicle.)

There has been a rise in demand in China/Asia over the past 20 months, and yet we are still at the same crude prices due to OPEC decisions and alternate energy PLANS just like you said. I just don't know how all these alternate energy plans will turn out though (esp w/ president's like Bush).

There's so much talk about hydrogen-based fuels, tidal energy source, "green homes", etc, but I do not see enough production and action to really make a difference. There's not enough influence and support for these alternate energy plans to take effect any time soon.

[Prngr44]

There has been a rise in demand in China/Asia over the past 20 months, and yet we are still at the same crude prices due to OPEC decisions and alternate energy PLANS just like you said. I just don't know how all these alternate energy plans will turn out though (esp w/ president's like Bush).

There's so much talk about hydrogen-based fuels, tidal energy source, "green homes", etc, but I do not see enough production and action to really make a difference. There's not enough influence and support for these alternate energy plans to take effect any time soon.

I totally agree with that. E85, hybrids, etc. are only projected to offset single digit percentages when it comes to total oil counts. It's a start, but I think the price of oil will be tied more to political motives than it will any supply/demand concerns.

[Markel]

Wait a minute! I thought that the falling gas prices were a pre-election manipulation done by the Republicans and oil executives, and that the prices would be skyrocketing after the elections!??!! :rolleyes:

[MikeD]

Nah, you've got it all wrong. Prices started to fall as soon as the Dems took over Congress!

[ray]

Nah, you've got it all wrong. Prices started to fall as soon as the Dems took over Congress!

Around the same time the Cowboys started tanking!

[MikeD]

Around the same time the Cowboys started tanking!

Ha! Good one... :boxing:

[Markel]

So much for this "theory" (http://www.gotapex.com/automotive-and-transportation/142714-low-gas-prices-an-election-year-ploy.html).

[MikeD]

So much for this "theory" (http://www.gotapex.com/automotive-and-transportation/142714-low-gas-prices-an-election-year-ploy.html).

Woo! A whole rack of folks just got...

http://www.oohshiny.net/gallery/d/173-2/pwned-facekick.jpg

[johnnymk]

The destabilization of the Middle East is a massive, but largely underreported problem now facing the world, including all our investors and readers.

All in the area, especially Sunni Muslim countries, like Saudi Arabia, are deeply concerned.

It is of interest that King Abdullah bin Abdulaziz al-Saud "required" Vice President Cheney visit Saudi Arabia just a few weeks ago. Reportedly he expressed worry that Iran will become the dominant power in the Mid East.

With the world’s largest oil field (al Ruwais), low lifting costs and a capacity of some 12 to 14 million barrels per day, Saudi Arabia is the key swing producer in the international oil market.

In today’s finely balanced oil market, the Saudis are pumping only 8 million barrels a day (less than two thirds of their capacity). By raising their production, they could swamp the market.

It is interesting to note that in November of last year, Nawaf Obaid, an adviser to the Saudi Arabian government, wrote in the Washington Post that Saudi Arabia would not sit idly by as Iraq’s Sunni population was mistreated by the current Shia majority backed by the Iranians.

Obaid warned, ominously, that the Saudis could boost oil production, cutting oil prices by 50 percent or more.

Obaid suggested this move would harm Iran, which has less financial reserves that the Saudi kingdom.

Interestingly, the price of oil has fallen rather precipitously since Obaid’s column.

"To me, it was kind of striking how immediately the additional weakness in oil prices followed that article," said Mellon Financial chief economist Richard B. Hoey. "It raises the question of what are the real intentions of Saudi Arabia about oil prices."

It appears that the Saudis, no longer confident of American protection (as agreed in their 1944 treaty with America), are attempting to take matters into their own hands by coaxing the world oil price downwards.

We feel that the Saudis are trying to "bleed" Iran of oil revenues and partially stifle the vital funding of the Iranian (Shiite) threat

[clutchy]

Wait a minute! I thought that the falling gas prices were a pre-election manipulation done by the Republicans and oil executives, and that the prices would be skyrocketing after the elections!??!! :rolleyes:


I made the exact same point on another site and the little conspiracy $luts wouldn't live up to it...

It's like 2.40 here now...

[Napoleon54]

Woo! A whole rack of folks just got...

http://www.oohshiny.net/gallery/d/173-2/pwned-facekick.jpg

:heh:

Naw, I'm sure there's a whole new conspiracy to explain it all.


Another topic: Shhh... don't tell OPEC, but I really wouldn't mind paying $3, $4, $5 per gallon. Transportation is very important to me, I really like being able to get behind the wheel and go where ever the heck I want. Doubling or tripling the price of gas wouldn't affect that much. So pardon me for not caring about +/- $0.20 everytime that happens.

[Maarchk]

Its 2.50 out in california. When it drops to 2.00 like the rest of the country then i'll be impressed.

[guiseppewv]

Ha - it is $2.80+ here in Hawaii. I still se places that have premium priced at over $3 a gallon.

[InfiniteNothing]

I'm going with seasonal adjustment. Prices usually go down in the winter and up in the summer due to travel changes. Honestly, I don't think prices are that low right now. 2.16 vs 2.19 at election time. That's a $0.03 difference. Prices went up for two straight months after the election. The gas companies are conditioning you to expect higher gas prices.

[MikeD]

What?

Prices normally spike in the winter months due to cold temps / heating costs. If you want seasonal, that's seasonal.

Warm winter = excess inventories = lower prices.

[guiseppewv]

Someone is stuck in the conspiracy zone.

[ShawnLee]

I'm going with seasonal adjustment. Prices usually go down in the winter and up in the summer due to travel changes. Honestly, I don't think prices are that low right now. 2.16 vs 2.19 at election time. That's a $0.03 difference. Prices went up for two straight months after the election. The gas companies are conditioning you to expect higher gas prices.
Yeah, I think you got it mixed up. It goes down in fall and spring, less driving and milder weather. Summer and winter are generally cooling/heating months and travel periods.

[eSDee]

Sounds like a bunch of Bitter Betty's in here :hihi: Gas still isn't cheap for me. It's at least $2.50 a gallon. Maybe when Bush hits 20% it'll drop to a $1.50. :hihi: