Why have the gas prices gone back up?

[gryphus]

From my understanding the gas prices went down (lowest $2.50) because the United States found its own Oil Source and natural gas sources... And because of this we depended less on foreign oil,therefore the gas prices went down...BUT NOW they are staring to go back up, WHY?

 

[Bitek]

Obama


Or its the market adjusting. Thousands of rigs are being taken off the fields and production growth is slowing. Dunno whats going on at refineries, but I wouldn't expect gas to rise too far with oil prices set to stay low for an extended period

 

[alcoholbob]

Shouldn't this be in Off-Topic instead of Politics & News?

Also how did you come to the conclusion that gas prices are $2.50 because of US Shale and Fracking?

 

[Bitek]

And that's not really what drive prices down. They had been creeping down all last year, but what triggered the slump was SA vowing not to cut production, even if it cut into national budgets.

Basically they launched a price war against the shale producers in the us. Their production costs are much lower, and it's a nationalized industry, so they can afford to bury the us producers.

 

[ivwshane]

Yep, bitek has it right, blame suadi Arabia for the lower gas prices and then you can blame them for their rise, all for the same reason, they didn't cut their supply like they normally do to raise prices.

It's why offering up our land for more oil drilling is pointless, unless you either want to nationalize our oil or bar oil companies from doing any business on the global market.

If you want cheap gas then you need to have better alternative energies available and their supporting infrastructure. People usually can't think that far ahead so you get what you vote for

 

[finglobes]

"From my understanding the gas prices went down (lowest $2.50) because the United States found its own Oil Source and natural gas sources."

Much of new oil producing segment in US was highly leveraged. Once oil goes below $80 a barrel things break up. Saudis purposely tanked price of oil to send the frackers into chaos.


The shale oil revolution is in danger
http://fortune.com/2015/01/09/oil-prices-shale-fracking/

 

[DCal430]

Actually gas prices have increased due to a number of issues, from the port slowdown in California, to a refinery fires, work stoppage at refineries . This affected California the most since we need special gas.

 

[Sonikku]

Obama veto'd the pipeline. Next thing you know, gas prices rose. COINCIDENCE? I think not!

 

[HomerJS]

I'm sure that dock workers strike was a factor

 

[ivwshane]

I'm sure that dock workers strike was a factor

The one that was going on while gas prices dropped like a rock?

 

[Sulaco]

From my understanding

There's your problem.

 

[Bock]

Another thing to remember is that U.S. based refineries will in fact ship gas to other countries where they can make more money.

 

[Londo_Jowo]

Oil prices went down because Saudi Arabia wanted to restrict US oil production by making it unprofitable to extract the oil. Now that oil wells have gone offline the oil price has recovered slightly.

Gas prices have increased due to the oil price recovery and union strikes at 20% of the refineries in the US.

http://en.wikipedia.org/wiki/2015_United_Steel_Workers_Oil_Refinery_Strike

 

[Newell Steamer]

Obama. Totes Obama.

 

[rudeguy]

gas dropped $.30 overnight to $2.09.

Thanks Obama!

 

[cabri]

Prices are directly related to the perceived supply of oil and refinery capacity. as well as global political unrest.

• Over the weekend; the supply numbers came in showing that the oversupply was still increasing. Some are now realizing that even though rigs are being shut; shale oil production is still increasing in the US.
• Then there were statements that Shell & others had enough trained people to start negating the effect of the refinery strike.
• Nothing happened over the weekend in terms of reported conflicts/sabre rattling in the Ukraine, Middle East or China.

 

[Adams200]

All good things come to an end, and so it seems with low gasoline prices. And we ahave allowed the dangerous process of fracking for cheaper gas in this country.

 

[feralkid]

gas dropped $.30 overnight to $2.09.

Thanks Obama!

Woah, Daddy, that's a hell of an overnight drop.

 

[cabri]

All good things come to an end, and so it seems with low gasoline prices. And we ahave allowed the dangerous process of fracking for cheaper gas in this country.

Fracking is dangerous when not properly done/controlled.

Gas prices are still much lower dueing to the production output of fracking.

 

[Hugo Drax]

From my understanding the gas prices went down (lowest $2.50) because the United States found its own Oil Source and natural gas sources... And because of this we depended less on foreign oil,therefore the gas prices went down...BUT NOW they are staring to go back up, WHY?

Hedge funds/Wall Street firms buying oil and putting it in storage.

 

[blake0812]

Supply and Demand. Economics 101

 

[gryphus]

gas dropped $.30 overnight to $2.09.

Thanks Obama!

feel ok now? where are you from?

 

[cabri]

feel ok now? where are you from?

His location is under his name.

 

[el padrino]

I guess this pricefall is temporary and it can result higher prices in a couple of months

 

[rudeguy]

Gas went up $.20 overnight.

Impeach Obama! He is driving up oil prices to help his terrorist friends!