We're saving $1 billion a day on gasoline

[DainBramaged]

Source: Detroit Free Press

Americans are paying $1 billion less per day for gasoline now compared with mid-July, when the national average price was more than $4 per gallon, an energy analyst says.

In Michigan, the average price of gas Friday was $1.62 a gallon.

Tom Kloza, chief oil analyst for Oil Price Information Service, estimates that Americans were paying about $1.61 billion per day for gas on July 11, when the national average price was $4.11 per gallon. On Friday, with Americans buying about 372.4 million gallons of gas per day, Kloza estimated that the country would spend about $611.5 million.

The low gas prices are a reprieve for the estimated 2 million Michigan residents who AAA estimates will travel 50 miles or more from home during the holidays.

Still, Kloza said the relief for individuals is not enough to provide a broader boost for the economy, stalled by frozen credit and low confidence.

Next year, oil and gas prices will remain low, at least until peak driving season returns in spring, Kloza said.


Read more: http://www.freep.com/article/20081227/BUSINESS06/812270370

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Imagine when everyday prices begin to lower because of reduced transportation, manufacturing and distribution costs. I know, deflation, but ya know what, in times like these stepping back a few decades in prices isn't bad.

[Selatius]

1. I only wish the cost of other necessities would go down, like food. nt

[DainBramaged]

2. Soon, very soon

[Duer 157099]

3. Before we know it, the oil companies will be heading to Congress

asking for a bailout

[Psephos]

17. lol n/t

[Turbineguy]

4. I saved even more than $1 billion today.

I stayed home.

[elehhhhna]

5. "Saving" my ass. If a mafia protection rachet stops stealing from ya, are you "saving"?

NO!

[NaturalHigh]

6. I wish I could rec your reply.

I was thinking the exact same thing. The oil companies extorted a massive windfall profit from us, and now we're supposed to be grateful when they stop.

[sandyj999]

7. My feeling exactly! n/t

[elehhhhna]

10. actually, although the oilco's made a LOAD of money, the crazy spike in pump prices this year

was , according to eveyone in oil in Houston that I've talked to (a good hundred in the last 3 months) knows that it was the speculation (traders) that jacked the prices. When margin curbs were put in place, the price dropped like a rock.

[earcandle]

16. yea. what he said/she said.

[Baby Snooks]

8. We're also spending $1 billion less per day...

Everything is relative. Depends on how you look at it. And if we're spending $1 billion less per day, quite a few don't have part of that $1 billion per day. Just as the price per barrel went up too fast, it went down too fast. Which of course will further erode the economy.

But never fear Barack Obama is here. Planning to redistribute the wealth that isn't there any more.

[elehhhhna]

11. more like we're not borrowing a bil a day, really.

[FailureToCommunicate]

20. Oh it's there all right. The rich still have tax loop holes you could sail the

Titanic through. Even if the taxes on the richest rich went only back up to where they had been before Bush gave them all
a huge gift on our backs, they already were paying billions less than their share...

[UrbScotty]

9. Enron Loophole

http://www.dailykos.com/story/2008/12/21/15822/284

[Baby Snooks]

12. How wonderful!

The price per barrel has dropped significantly. And probably will destroy what's left of the world economy.

And Bush probably laughed as soon as he was out of view of everyone. But what the hell we have cheap gas at the pump, right?

We also have a growing number of Americans who can't afford the cheap gas at the pump.

[DainBramaged]

14. Wonderful point, I hope everybody reads your link

Red line is when legislation took effect.

[faulknercindy]

13. Are we saving money

and buying less gas? If not we are not accomplishing a thing.

[JCMach1]

26. U.S. Savings rate has doubled in recent months...

so some is getting squirreled away... This can only be good in the long run.

[earcandle]

15. That oil rise was a pure paper rise that was illegal

the reason the price is coming down is because the industry
was reprimanded by Congress where it was learned that oil is
not a commodity and should never have been treated as such and
the spiral up of prices was in paper only and the goods never
existed nor were delivered.  We are experiencing the fallout
of Enron economics that still existed after Enron and Lay were
old news.  The prices are down now because the regulations
regarding that kind of speculation was deemed illegal and
everyone stopped.  Middle Eastern oil never rose above $30 per
barrel, but they want to raise it now.  

Did anyone catch these hearings on Congress?  I hope someone
else here could articulate the more precise terminology  used
that accused some for breaking SEC rules, and sent others out
of the trades.  If this is news, then I will go find the
links.  Might have something in my noodlebrain.com/news
somewhere.  I once put out google alerts and often find
interesting things in my box, but I know I saw this on CSPAN. 
One good thing about not working much is you get to see our
Congress in action.  They act like they have no power and no
control to have people arrested for their crimes.  They just
seem to reprimand.  What is up with that?  

[lin_e65]

18. No one has considered....

the role of speculators and how they have driven up prices in the past. Speculation on energy should be made illegal.

[backscatter712]

19. The reason oil and gasoline prices came down was the closing of the Enron loophole.

Over Bush's veto I might add.

As soon as Levin's amendment to close the Enron loophole and re-regulate energy futures trading went into effect, the speculators bailed and the price of oil dropped to sane levels.

[earcandle]

21. thanks!

[elehhhhna]

24. SEE MY POST #11

oops sorry for the caps -- this is widely known in the oil biz here in Houston.

[OneBlueSky]

22. merely a pause in the massive transfer of wealth from us to the oil companies. . .

they need a little time to count their money, roll around in it, and plan for the next round of grand larceny . . .

[Mari333]

23. gosh, look how much we would save if we got out of these damned wars

www.costofwar.com

[natrat]

25. i went 1/2 long an oil etf when oil went below 40-78%retracement +long term support

looking for another gift entry in the low 30s and a target of 53 based on 30% of the 2008 range --no stop , let it fester for a while if need be

[No Elephants]

27. Whatcha mean, "we?" I don't own a car. Besides, we are still paying the increases on

food, airfares and everything else that increases when fuel prices went up. And I feel bad for people who locked in their home heating oil prices at the wrong time. As far as I can't tell, I'm still being scrod.