Can someone tell me why gas prices just went DOWN?

[Digit]

Usually anything that spooks (or they can SAY has spooked) the oil industry causes prices to rise.

Does it strike anyone else as odd that during and post Rita, they would DROP?

Is the administration doing this to help his image? Do they have that kind of power?

I am just curious.

[Cessna Invesco Palin]

1. Well, the oil infrastructure wasn't destroyed... n/t

[ladylibertee]

6. Enjoy it while it last.( sarc )

[Dover]

2. Because...........DOWN IS UP.........and vice versa

Go ask Alice, when she's ten feet tall.....

Cheney calls it 'the new normal'.

[liberal N proud]

3. You gotta think that, don't you

Because all weekend the media whores were predicting that gas would shoot up in the short term then level off. Some even predicted above $4.00 national average.
I have not heard any explanation why they went down though.

[RebelOne]

4. Down? Not in my neck of the woods here in N. Georgia. n/t

[HereSince1628]

5. Because the State Attornies General are clamping down on gouging?

Maybe the companies are trying to do pennance for the sins they committed following Katrina.

[Freddie Stubbs]

13. I think that may have something to do with it

Here in FL the AG subpoenaed a bunch of oil companies and gas stations. What they are trying to determine is if the prices have been rising BEFORE the more expensive gas has been delivered. Gas prices have pretty much stayed the same here in S. Florida for the past two weeks. There has been to bump (yet) due to Rita, while the one from Katrina was almost immediate.

[Lochloosa]

7. Depends on your definition of down...

One year ago you were paying what..1.50 1.80 for a gallon of gas. Today it's "down" to 2.40 2.60 a gallon. The cartels realized that 3.00 a gallon was the point at which people would really start looking at their driving habits so they had to lower the price. Now everyone sees the price going "down" and it's load up the SUV for that weekend excursion.

[Dr Batsen D Belfry]

8. For the first time in recent memory

and possibly in history, oil and gas futures were traded on Sunday. Since it was announced the majority of our refining infrastructure sustained little to no damage, futures actually dropped by at least a dollar a barrel yesterday. The assumption is that there is enough processed gasoline in the system and enough on its way from other countries, along with significantly decreased consumption, that the time it will take to get the remaining refineries online will be offset.

We dodged a major bullet.

Notes to Washington...
1) Add gasoline and heating oil to the strategic peroleum reserve
2) Start requiring refineries be built inland under the category of national economic security

Later,
DBDB

[gorbal]

9. PLus

PLusthe Hurricane season is almost over.

[DemocratSinceBirth]

10. You Heard It Here First

Barring any more disruptions the price of unleaded gasoline will be closer to $2.00 than $3.00 by Christmas...


That being said, "low prices" in the long run will kill us because it will discourage companies from investing in more fuel efficient automobiles and alternative sources of energy... When the price of gas is high enough to discourage consumption then businesses will look for alternative sources of energy...

[GOPAgainstGW]

18. No Way $2.00 - Under-reported extensive O & G infrastructure damage......

from both Katrina and Rita. The Oil & Gas Industry did the same under-reporting of extensive infrastructure damage from Ivan last year. They do this on purpose. The days of cheap gasoline are OVER.

PS: I live in Houston and know the O & G market very well.

[Theres-a]

21. I agree

Every thing we read is spun to keep us shopping and driving and quiet.

[GOPAgainstGW]

22. Pic 3 - Look at all the Terminals on the Port Arthur/Lake Charles coast...

and that area got killed by Rita.

PS: I live in Houston, know the O & G industry very well, and have been running a Hurricane Rita Command Post for 8 days now here in Houston.

[DemocratSinceBirth]

24. Reread My Link

I said closer to $2.00 than $3.00 ....

And I made a provision for another disruption...

[GOPAgainstGW]

31. No Way , Closer to $3 - $3.50 not $2.00. Your Dreaming - eom

[DemocratSinceBirth]

36. Let's Make It Interesting

We both have each other private message boxes...


A $100.00 donation to DU is on the line...


Here's the wager...


Barring any major disruptions the national average for a price of uleaded gas on December 25, 2005 will be $2.50 or less...

[GOPAgainstGW]

29. Katrina & Rita: 2.2 Million Gallons of Daily Gasoline Prod is Off-Line

[DemocratSinceBirth]

32. I Gave Myself Two Months...

We are only talking about 20 cents to 30 cents....


I can get unleaded in Orlando for $2.69...

[GOPAgainstGW]

35. No Way, The O&G Industry Only Recently Recovered from Hurr Ivan....

and getting their profit margins straightened out. Hurr Ivan last year caused MASSIVE O & G Gulf infrastructure damage that most the public never heard about unless you ready O & G trade mags/pubs.

Now they have massive damage from two major hurricane that will affect their profit margins for 2 years. Hurr Ivan put a floor in how low prices can drop net-net, big picture.

[Dover]

11. AP - Energy prices cool down in special trading session

Energy prices cool down in special trading session
Associated Press

NEW YORK - Crude oil futures fell sharply in an unusual Sunday trading session as it appeared that oil rig and refinery damage from Hurricane Rita was less than originally feared.

Oil prices had climbed steadily last week as Rita churned through the Gulf of Mexico as a Category 4 hurricane but fell Friday as the storm weakened before landfall early Saturday.

A barrel of light crude for November delivery was quoted at $63.10 Sunday evening on the New York Mercantile Exchange, down $1.13. Trading was very light, and prices ranged from $62.65 to $63.44 as traders assessed the storm damage...>



http://www.chron.com/cs/CDA/ssistory.mpl/business/3369389

[GOPAgainstGW]

12. BushCo REALLY Pressured his Oil Exec Buddies to Not Jump Prices - eom

[DemocratSinceBirth]

14. Oil Is Bought And Sold On The World Market....

I don't think it's physically possible to "fix" the price with the myriad of buyers and sellers...

[GOPAgainstGW]

20. That Doesn't Determine Gas Pump Prices - The Oil Co's Determine That..

... by cutting their profit margins, then will make it up later when the heat is off BushCo.

[DemocratSinceBirth]

23. Citgo Is Owned By Venezuela And Hess Is A "Blue" Company

Why would they fix prices for Bush?

[GOPAgainstGW]

26. Saudi's Are Owned by BushCo i.e. Papa Bush Texas Family Mafia.

[burythehatchet]

30. you have that backwards

BushCo are owned by the House of Saud. Its one of their many holdings.

[GOPAgainstGW]

33. Not Post Iraq Holy War - BushCo owns those Bastards Now - eom

[DemocratSinceBirth]

34. That's An Interesting Way Of Looking At It..

I despise the House Of Saud and the House Of Bush....

[GOPAgainstGW]

37. Could be Worse, You Could Be A Rep Like Me, LOL!

[DemocratSinceBirth]

27. The Saudis Are A Member Of OPEC .... They Can't Unilaterally Raise Prices.

As the biggest producer in OPEC they have more power over the final decision but they can't make a decision unilaterally.

[Redstone]

15. It's because of the commodities traders, just like it is

when the prices go up.

They bid a price for future deliveries based on what they think people will be willing to pay.

Doesn't have anything to do with the government or the oil companies...it's just like the stock market; a company's stock price doe NOT have anything to do with how well the company is actually doing. It is ONLY a reflection of what people THINK it's worth.

Essentially a shell game.

Redstone

[LostinVA]

16. Mine didn't go down -- still $2.89 here this morning....

[BiggJawn]

17. Because GFY Cheney came through his surgery OK.

They say it's because Rita didn't shred the refineries like they were hoping she would.

I think a more plausible explanation would be "Because we CAN".

[Laelth]

19. Saudi cooperation.

I thought I saw a news item recently that the Saudis have opened up their petroleum spigot to full blast in the aftermath of Katrina. Doing so pressures other oil-producing countries to produce more, increasing global supply and driving prices down.

When my tinfoil hat is on, I see this as a move on Bandar Bush's part to protect his brother George whose popularity has been hammered by rising fuel prices. Even when my tinfoil hat is not on, I suspect this is true.

:tinfoilhat:

-Laelth


Edit:Laelth--spelling.

[DemocratSinceBirth]

25. I Think High Oil Prices Have Succeded In Slowing Economic Growth

With less growth comes less demand for oil and consequently this lessened demand results in lower prices....


That's why $65.00 a barrel oil is a mixed blessing for those who produce it...

[newportdadde]

28. Down... anything over 2 bucks isn't down.

I can't say I'm not like you though, I was happy at the prospect a week ago of getting gas for 'only' 2.50. Its that sad just several months ago I nearly had a heart attack when it topped over 2.00 bucks.

As for now even if it does go down I'm keeping my oil investments, if anything this whole episode has shown me just how tight we really are on oil.

[quisp]

38. Too many people are demanding investigations

into price goughing. Cheney doesn't want Big Oil to go to the well too often.

[Busshianic]

39. Big Money did it to F over speculators (their competition)

Big Money (elite banking houses etc.) have the media say Oil is going to go up due to X,Y and Z. They then sell their oil to a large market who believes it and make a hefty profit. This allows Big Money to get all their dough out of the oil markets which in turn makes the price of oil go down. The speculators all get screwed, many of whom we're highly leveraged. Then Big Money proceeds to buy everything back up at lower prices, which drives the prices back up, and they prepare to run the scam again.