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not sure but likely. it's interesting how prices drop to 2.53 (where Im at) and the mind starts to think thats a good price, terrible. They gouge us then drop it 30 cents and we feel like we are getting a good deal. just my pennies 4 thought
Bend Over.
There are many reasons and theories, but most credible news reports cite that oil speculators in Chicago pretty much decide how much they think gasoline is going to cost us, lately they have decided that there is an abundance of supply, there were no major hurricanes this summer to disrupt supply, the summer ethanol mix is over (means cheaper to produce) and tensions in the middle east have declined. Also many fund managers are dropping out of oil investments which is driving those prices down. The president can't do much directly and there are many middlemen that influence the price all the way from OPEC, Chicago speculators, oil companies, refineries, weather, summer / seasonal blends and so on.
OPEC is also at odds with one another. Their meetings last week ended in a stale mate. They are trying to decrease production by 1.5 million barrels/day, but both Venezuela and Iran are refusing to cut back their production, which in turn makes all the other member countries have to scale up thier production.
There are a few Doves and plenty of Hawks inside of OPEC. Also, Saudi Arabia is the largest oil producer in the world, and the royal family just so happens to be great friends with Bush and his cronies. If Bush wanted to lower prices a little, he could also ask his friends over there to increase production for just a few months during the election season.
But CMA is right. The price is set on the markets, and supply. The oil companies jacked up prices before the hurricane season in anticipation of decreased production due to storms, but this season was quiet, so now they are "making up" for this.
Nothing takes away from the fact the Exxon-Mobile posted $10billion profit (PROFIT!) for the 3rd quarter, that equates to $40b profit in a year. Having energy executives running our country def. had something to do with that, so it isn't too far fetched to believe that those same exec's could lower prices just as they raised them.
Not to get into it but I have to say this. If they had a $10 billion record 3rd quarter profit because of unknown aticipations to make up for their BS rise in cost while the economy wasn't/still isn't the greatest they need to drop that sh%t a lot more than they already have. Maybe back to when I first started drivin $.85.... that would be nice. But, living in the valley there is no way they would drop it to the national average because of cost of transport (which they over play) and officials legs might get old if they don't have all that cash in their pockets to keep 'em warm
Steve Z
"Now if you'll excuse me, I'm going to go on an overnight drunk, and in 10 days I'm going to set out to find the shark that ate my friend and destroy it. Anyone who wants to tag along is more than welcome." Steve Zissou
FIRST:
CMA- this rant is not directed at you, but to the reporter(s) who - for whatever their reasons - writes things like the statement below.
Quote:
and tensions in the middle east have declined.
I read the same economic type of article a couple of weeks ago - I think it was in the NYT. The basic economics of the decrease in gas prices are true (surplus=lower prices). However, one of their reasons for this surplus, like the above quoted statement, is such a load of crap. It's funny too, because the article I read was written almost identically to CMA's above quote. I remember it well because I just laughed and asked myself: Says who?? Am I living on the same planet as this reporter? Does he really expect me to believe this? Wasn't Israel just blowing Lebanon and 1300 of it's innocent civilians into oblivion in August and Sept? Aren't American troops being killed and injured each day in Afganistan and Iraq? Aren't hundreds of innocent Iraqi civilians dieing each day?
The point of this rant: Just because the mainstream media is only focusing on the upcoming elections and N. Korea doesn't mean that tensions in the middle east have simmered down. Don't worry though... as soon as some "real action" happens, shock and awe type action, CNN's Wolf Blitzer and Fox's Bill O'Reilly and the rest of the MSM will be on it like flies on a piece of poop to give us the most biased corporate news available. And, unfortunately, most Americans will swallow this propaganda without even knowing that they "drank the kool-aid."
disclaimer: read this article by Noam Chomsky http://www.zmag.org/chomsky/talks/91...a-control.html - or read his book "Manufacturing Consent." Otherwise you might throw me into the wearing a tinfoil hat category with a sentence like my last one.
As for the gas prices: Up, up, up and up again. The oil spigot just might be turned on all of the way. China and India are new factors in the oil game and are now competing with America for oil. What happens when there is more demand? Econ 101 says... prices go up. I'm sure that this issue is way more complex than Econ 101, and like cecil mentioned, the Iranians and Venzuelans (Chavez) aren't playing by the OPEC cartel's rules...so...who really knows what the future has instore for us. I'm guessing more energy wars, power struggles, regime changes, high gas prices and all the other good stuff that comes with being addicted to oil.
As far as tensions go, I don't disagree with you at all, but apparently to speculators, the concern at the moment that oil production could stop at any second has decreased. I believe that Isreal ending their attack as well as Iran at least talking to Europe has been enough for them to decide that the oil supply isn't going to be turned off tommorrow. Who knows, someone could insult islam again tommorrow causing riots accross the mid east and Iran could walk out of talks and speculators could decide that oil should be back up to $70 a barrel.
In the end little of it makes any real sense as there was never any real shortage over the summer when prices were high and no one was decreasing production. It all really comes down to some guy on a trading floor deciding that we should be paying what we are paying for whatever reason he sees fit.
Re: Are low gas prices before the election a coincidence?
Quote:
Originally Posted by cstork
Think they'll go up after the election?
It's a no brainer.
All of the economics stuff is bunk. It doesn't take allot of imagination to see Cheney in a room with the Oil exec's going "Republicans are behind in polls and slipping. You guys better cut us some slack to help us out and give us something good to talk about. When we get voted back in by the short sighted,stupid american public then you can go back to your gouging with our blessing and protection for a few more years."
Re: Are low gas prices before the election a coincidence?
Quote:
Originally Posted by tuberslickmysweatyballs
Quote:
Originally Posted by cstork
Think they'll go up after the election?
It's a no brainer.
All of the economics stuff is bunk. It doesn't take allot of imagination to see Cheney in a room with the Oil exec's going "Republicans are behind in polls and slipping. You guys better cut us some slack to help us out and give us something good to talk about. When we get voted back in by the short sighted,stupid american public then you can go back to your gouging with our blessing and protection for a few more years."
Ya hit it dead on the head. Couldn't of said it better, no matter how hard I try.
Personally, I don't see this as a price manipulation for political gain by either party in our system. I expect that our bad habits and fortunate past have led us to a sense of entitlement for cheap gas at the pump and OPEC is well aware of this. If you think Exxon/Mobile made a ton of money, think what the OPEC nations made. What isn't coincidence is the fact that since 9/2003 to now, oil has increased from $25/barrel to what ever it trades at on a given day - between $60 - $70/barrel - and we now pay more than double for our gas. The simple truth is that OPEC now has a justified reason to squeeze us and they are probably happy to do it since we are mucking in their territory. The only thing Exxon/Mobile is guilty of is good business - they are taking advantage of the fluctuating market prices by buying low and selling high. As far as price gouging, let's think about this: Exxon/Mobile is able to get oil out of the earth, transport it thousands of miles and refine it to a usable product for a 5% to 15% profit margin and a ton of volume??? For comparison sakes....Coca Cola(and other companies) are able to get water for close to nothing, filter it and sell it for over $5.00/gallon(16oz for $1.39)! Who's gouging us?! The only difference is that we "need" gas to continue our arguably "bad" habits. The simple fact is that consumers are the victim of our own bad habits. Don't feel bad, though, it was not only you and I that assumed our right to cheap gas was a constant. GM and Ford will likely lose as well as their strategies didn't account for expensive gas, either.
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