Hey what do you guys think about the gas prices? I was wondering what you guys think caused the dramatic fall of prices.

1. Because Obama has been elected.
2. Because the ban on drilling has been taken away.
3. Because the oil company owners were afraid they would lose their buisness if prices didn't drop.

God Bless
Swimmer Dude

i don't know but i heard it might cause a depression

The real reason is because of market manipulation. Some people manipulated the market so that crude oil prices would drop, from $150 per barrel to $50 per barrel.
They bought oil futures or something like that...There is a 95% link from crude oil prices to gasoline prices.

So considering $150=about $4, our current price, $50= about $1.33 The prices may still drop. The lowest I've seen at present is $1.889.

The actual market blames, or credits it rather, on less demand. I do not believe that. The fact is OPEC does not care about demand.

By the way, I would like to add that the prices have been falling since September, BEFORE THE ELECTION.

Well Obama is not president yet...

We can still make fun of him until then.

Hey I am a firm McCain surporter and I think that instead of making fun of Obama we should pray that God guides him through the tough times he is going to come up against. God Bless America!!

Swimmer Dude

Carl, sorry to tell you, but market manipulation cannot accomplish what has happened to oil prices. The price of oil declined for two reasons.

1. The stock market tanked
Every thing costs less now. Everybody's stock is worth less, and their prices are lower.

2. Demand is lower.
This is indeed a feasible reason. When money is tight one of the easiest things to do is to cut travel, people naturally travel less in bad economic times.

How can OPEC not care about demand? Demand is what supports their buisness. Without demand they can't sell their product.

Prices have been falling since it became clear that Obama was going to be elected. There was a 15% drop in the stock market the day after he was elected, which had been predicted by analysts.

To answer Preston's question, I say that a bad economy caused the drop in prices.

Foreign demand has gone up. China especially.

And yes: Market manipulation can make the prices drop.

But take it from me, the drop will not last and the prices will be back up in a few months in time for another expensive summer.

Quote:

1. The stock market tanked Every thing costs less now. Everybody's stock is worth less, and their prices are lower.

Food amoung other supplies have stayed high in price.

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Carl

Carl I doubt that the prices will be going up in a couple months. Personally I don't think that gas, at least for a while, will be rising above the 2.50 mark. In fact I think that in a couple years because of the tecnology all the environmentalists are involved in we will eventually produce a better source of energy for vehicles. This new energy will eventually take over the need for gasoline.

Swimmer Dude

Gas is a commodity. The price paid for it is directly, directly connected to the price that people are willing to pay for it. If demand goes up in China, then the Chinese will pay more. If demand decreases in America, then Americans will pay less.

If the economy goes downhill, and people will not pay as much for gas, then the price goes down.

If as alternative car comes out that is cheap enough (which could be a long while), the price of gas will go down.

Carl,

Gas is always more expensive in the summer because people travel more and the demad for gas goes up.

Food is a necessity, no matter what the economy is like, everyone still has to buy food.

Hey, in this day and age GAS IS A NECESSITY.

Nontheless, people will drive less, package their errands together, and not drive to vacations and stay at home, or carpool should the price become too high. While people cannot do entirely without gas, they certainly can and will use less if the price is lower.

As James says, the price in the summer rises because of increased demand. Of course, it also rises because they use a more expensive cleaner type (if I remember correctly).

As for market manipulation, I seriously doubt that people are manipulating the gas price to fall. No doubt many people thought Gas (like houses) was a sure bet in terms of an economical investment. As the rest of the stock market fell, so did the people who were holding gas as an investment.