Finally some good news. And oil is back under $70/bbl as well. I don't think you'll see anyone dancing in the streets but $2 gas is better than $3 gas.Gasoline prices could keep falling
By James R. Healey, USA TODAY
Gasoline prices are falling fast and could keep dropping for months.
"The only place they have to go is down," says Fred Rozell, gasoline analyst at the Oil Price Information Service (OPIS). "We'll be closer to $2 than $3 come Thanksgiving."
Travel organization AAA foresees prices 10 cents a gallon lower by the end of next week. It reported a nationwide average of $2.84 Tuesday, the lowest since April 20.
It's good news for consumers and the economy. Continued lower prices "may act like a tax cut" and stimulate spending, says Richard DeKaser, chief economist at National City in Cleveland. He calculates that higher energy prices the first six months cut growth of consumer spending 1 percentage point.
The U.S. average for a gallon of regular peaked this year at $3.036 Aug. 10, according to OPIS/AAA daily surveys. That's slightly under the high of $3.057 Sept. 5, a week after Hurricane Katrina battered petroleum production in the Gulf of Mexico and caused fears of fuel shortages.
OPIS' Rozell figures prices will jump again next spring.
Behind the current drop:
?The end of summer. Driving slows, reducing demand for gasoline. And federal requirements for clean air, summer-blend gasoline end next month, making gasoline cheaper to refine and import.
?Sluggish demand. Gasoline use in the first eight months of the year is up 1% vs. a year ago, less than the 1.5% to 2% growth that's typical, says Michael Morris, analyst at the U.S. Energy Information Administration. "Wholesalers are trying to get rid of product. The growth in demand for gasoline has really tapered off," he says.
Wholesale prices are falling faster than retail gasoline prices, meaning stations are making more money than when prices were $3. Wholesale prices Tuesday ranged from $1.77 to $1.79 a gallon, well below the $2-plus prices typical until recently.
?Petroleum traders, worried that prices are too high to last, are selling their holdings. That pushes prices down. They also believe hurricanes won't disrupt Gulf of Mexico production, OPIS senior analyst Tom Kloza says.
Crude oil, which accounts for roughly half the price of gasoline, ended New York trading Tuesday down 90 cents, at $69.71 a barrel. That's the first time it's closed at less than $70 since May 4.
Contributing: Chris Woodyard, Barbara Hagenbaugh
Originally posted by: BaliBabyDoc
^^It's good news if we raise gasoline taxes.
Not for general revenue mind you. I'm talking gasoline taxes for clean, efficient public transportation (MUNI be damned), technology subsidies to industry to produce cleaner, more fuel efficient vehicles, subsidies to consumers that buy cleaner, more fuel efficient vehicles, and some kind of subsidy for people that just manage to drive less.
Really high gasoline prices would do some of that but most of the 'financial' benefits go to the gas pirate multinationals and their freedom-loving patrons - the leaders of such countries as Iran, Venezuela, Russia, Middle East autocrats, Equatorial Guinea, etc.
We can do better . . .
Originally posted by: Zorba
Originally posted by: BaliBabyDoc
^^It's good news if we raise gasoline taxes.
Not for general revenue mind you. I'm talking gasoline taxes for clean, efficient public transportation (MUNI be damned), technology subsidies to industry to produce cleaner, more fuel efficient vehicles, subsidies to consumers that buy cleaner, more fuel efficient vehicles, and some kind of subsidy for people that just manage to drive less.
Really high gasoline prices would do some of that but most of the 'financial' benefits go to the gas pirate multinationals and their freedom-loving patrons - the leaders of such countries as Iran, Venezuela, Russia, Middle East autocrats, Equatorial Guinea, etc.
We can do better . . .
I agree, I think prices should be artifically held above ~$2.50-2.75. Because now if prices fall back to 2 bucks, it will seem cheap to a lot of people and we will increase our wasteful ways. Also, by artifically inflating the price of gas, we should be able to build up extra surpluses, so if we get hit by another major storm we aren't so screwed.
Originally posted by: jlbenedict
Originally posted by: Zorba
Originally posted by: BaliBabyDoc
^^It's good news if we raise gasoline taxes.
Not for general revenue mind you. I'm talking gasoline taxes for clean, efficient public transportation (MUNI be damned), technology subsidies to industry to produce cleaner, more fuel efficient vehicles, subsidies to consumers that buy cleaner, more fuel efficient vehicles, and some kind of subsidy for people that just manage to drive less.
Really high gasoline prices would do some of that but most of the 'financial' benefits go to the gas pirate multinationals and their freedom-loving patrons - the leaders of such countries as Iran, Venezuela, Russia, Middle East autocrats, Equatorial Guinea, etc.
We can do better . . .
I agree, I think prices should be artifically held above ~$2.50-2.75. Because now if prices fall back to 2 bucks, it will seem cheap to a lot of people and we will increase our wasteful ways. Also, by artifically inflating the price of gas, we should be able to build up extra surpluses, so if we get hit by another major storm we aren't so screwed.
Good point and I agree. I don't mind paying $2.75.. of course, in a perfect world, it would be nice to pay under $2.00.. but this isn't a perfect world
Originally posted by: BaliBabyDoc
^^It's good news if we raise gasoline taxes.
Not for general revenue mind you. I'm talking gasoline taxes for clean, efficient public transportation (MUNI be damned), technology subsidies to industry to produce cleaner, more fuel efficient vehicles, subsidies to consumers that buy cleaner, more fuel efficient vehicles, and some kind of subsidy for people that just manage to drive less.
Really high gasoline prices would do some of that but most of the 'financial' benefits go to the gas pirate multinationals and their freedom-loving patrons - the leaders of such countries as Iran, Venezuela, Russia, Middle East autocrats, Equatorial Guinea, etc.
We can do better . . .
Originally posted by: Strk
That's good to see. I just wish people would start to change their habbits. One of the biggest problems is us, not some industry.
Originally posted by: Wheezer
Originally posted by: Strk
That's good to see. I just wish people would start to change their habbits. One of the biggest problems is us, not some industry.
DING! DING! DING!
We have a winner!!!
If WE would quit buying large automobiles (Ford F150's, SUV's, Hummers) and start telling the car makers to better engineer thier products to avoid this AND as a collective society tell the oil companies and goverment we DEMAND renewable alternative fuel sources...we won't go through this again.
But since history is the best predictor of the future we are bound to repeat our foolish mistakes. Only next time we'll be paying $7-$8 a gallon
Hahahahahahaha... that was my first reaction too. But I didn't want the thread to get locked so I left it alone.Originally posted by: EagleKeeper
Do not tell Dave the bad news.
You are confused. Oil/gas prices ALWAYS fall after Labor Day. ALWAYS. Remember Hurricane Katrina a year ago? Gas was at $3/gal. then and everyone said it would go up even further because of the hurricane and what happened? Prices fell. Why? The summer driving season was over. There were no major elections last year. So take off your tinfoil beanie.Originally posted by: Donny Baker
The American voters are being bought out. Anyone who doesn't realize this... I have some oceanfront property in Indiana I'll sell to you real cheap.
Look for gas to back up between election day and Thanksgiving.
Originally posted by: Vic on 08/17/2006 08:13 AM
The American sheep should know by now that oil and gas prices always go down in the fall. I've been telling this forum for years that the direction oil prices will move can be predicted just by looking at a calendar but most of the people here continue to believe that (to use another Orwell reference) the chocolate ration never changes.
I will now predict that prices will spike back up just before Labor Day, then plummet starting in mid-September and that will we have $2 gas by December. There will be a brief spike around the holiday season, then back to $3 gas in the spring.
Originally posted by: Strk
One of the biggest problems is us, not some industry.
Originally posted by: ProfJohn
Question 2: how many of you are toting 2 kids around in your Prius or Civic hybrid?
Originally posted by: BaliBabyDoc
^^It's good news if we raise gasoline taxes.
Not for general revenue mind you. I'm talking gasoline taxes for clean, efficient public transportation (MUNI be damned), technology subsidies to industry to produce cleaner, more fuel efficient vehicles, subsidies to consumers that buy cleaner, more fuel efficient vehicles, and some kind of subsidy for people that just manage to drive less.
Really high gasoline prices would do some of that but most of the 'financial' benefits go to the gas pirate multinationals and their freedom-loving patrons - the leaders of such countries as Iran, Venezuela, Russia, Middle East autocrats, Equatorial Guinea, etc.
We can do better . . .
Same with interest rates.Originally posted by: Used Rugs
I predict that gas price will keep falling until the Nov. mid elections.
For interest rates to decline in the fall is also a common trend that happens more years than not (8 out of the last 10 years in fact). TextOriginally posted by: DealMonkey
Same with interest rates.Originally posted by: Used Rugs
I predict that gas price will keep falling until the Nov. mid elections.