Can anyone tell me why gas prices are suddenly going down?

[babylonsister]

I don't get it. Are the oil companies in cahoots with the car companies that want to sell Hummers, do you think it's because of the mid-term elections, please explain what your best guess is. Thanks.

[Waya]

1. November is just 2 months away...............

[Ian_rd]

6. Yep. Oil Corporations benefit enormously from Republican Rule, therefore

helping Republicans any way they can is just good business sense.

[hippiechick]

2. Yep.

There was an article posted earlier this week from USAtoday explaining just that.

[OhioChick]

3. Mid-term elections

nuff said.

[underpants]

4. Supply and demand

The American Petroleum Institute is trying to supply all the votes the RNC demands
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=132&topic_id=2803704&mesg_id=2803704

[dogday]

5. This has been prophesied for a while now

November elections will all but guarantee that this Administration will lower gas prices to help the Republican party... I told my husband I read this months ago and yesterday he said, you were right.. The price of gas did come down...

[MazeRat7]

7. High inventory levels.

People have been using less for the past couple of quarters and gasoline inventory is high. Soooo... the prices are going to drop.

MZr7

[buff2]

14. LOL!

It's the November elections. I knew this would happen. The repukes are soooo predictable.

[Toots]

21. But but what about Profits?

Exxon made over $75,000.00 per minute in Pure Profit last quarter alone. I guess if they get down to only $50,000.00 per minute they may survive.. :crazy: Americans are such dolts...

[RaleighNCDUer]

23. Rhiiiiight.

[MazeRat7]

28. You folks are funny... can I have some of that ?

Apparently some missed the basics of what drives the futures traders which in turn drives consumer fuel prices.

Here is a quick lesson:

Normally, gasoline prices begin to rise in the spring as the industry gears up for the summer vacation season, when millions of motorists hit the open road and the demand for fuel surges. Pump prices generally head higher until Labor Day, and then begin their usual seasonal decline as vacation travel slowly winds down.

Their seasonal decline was less than usual because meteorologists began predicting that this year's hurricane season would be as bad -- if not worse -- than last year's, with the possibility of affecting the refineries on the Gulf Coast once again.

Realization that gasoline prices may have gotten too pumped up is one reason for the earlier-than-usual decline in prices this year. But there are others, which will remain even if Mother Nature should change her mind and shower us with many showers between now and the end of the hurricane season on Dec. 1.

For one thing, there's the ongoing change in the mix of vehicles being purchased these days. Time was you had to pay a premium if you wanted to buy one of those four-wheeled behemoths the industry calls SUVs. That they got poor gas mileage was ignored by most, since, after all, size mattered and, when it came to motor vehicles, bigger was definitely better. Not any more, they cant give them away.

Finally, there's the slowdown in growth now under way. Besides the earlier run up in energy prices, there are the 17 hikes in interest rates engineered by the Federal Reserve, and the ensuing leak in the housing bubble. Less growth means a cutback in output and fewer jobs -- both of which reduce our use of fuel. Basic supply and demand.

While its cute and fun to roll eyes and scoff but perhaps, just perhaps, there is a logical explanation for SOME of what we are seeing in the price reduction. No I am not discounting pressure from the power elite to lower prices BEFORE the elections - I just don't think that is the ONLY reason.

MZr7

[Burma Jones]

8. Labor Day is probably the biggest factor

the summer driving season is over and gas prices always drop this time of year

Also, speculative bidding up of oil prices in anticipation of an active hurricane season has stopped.

If the car companies want to sell Guzzlers again, gas is going to have to get back well under $2.00

[Ian_rd]

12. It makes no sense for them to drop BEFORE Labor Day, because

Labor Day in itself means high demand for gas due to all the travel that is about to occur.

[babylonsister]

15. That's what I thought; don't summer holiday weekends usually

see a spike in prices?

[Burma Jones]

20. They have to drop enough to get people....

to actually go out and drive. After paying inflated prices for gas all summer, a drop in prices will stir up demand.

[zbdent]

16. Ian_rd (#12)is right ... historically, Labor Day meant one final surge in

gas prices to soak those who want one last gasp out of summer ...

[dogday]

19. Actually their pattern has been to raise the cost

of gas around the holidays.. More consumption at higher rates = big loads of profits....

I thought they would of waited until after Labor Day... That has been their usual pattern... Can set your watch by it....

[Tesha]

9. "'Election's coming!" (NT)

[spanone]

10. Hmmm, didn't BP just have to shut down their Alaskan line?

It's called POLITICS.

[babylonsister]

11. But what's the justification by the oil companies for WHY

the price is dropping so quickly? How is this being spun?

[City Lights]

13. My money is on the mid-term elections.

I paid $2.76 yesterday, down from a high of about $3.24. The oil companies are in cahoots with Queen George.

[Philosoraptor]

17. People are just dying to keep gas prices down. Literally

[ThomWV]

18. Maybe 100 New Refinery's Just Opened

Bwahahahahahahahahahaha

[ProfessorGAC]

22. You're Exaggerrating

No more than 92 new refineries opened. :evilgrin:
The Professor

[applegrove]

24. And they'll be lower..just until early November. Hmmmmmmmm?

[Homer Wells]

25. Considering the BP Pipeline in Alaska is shut down

you would think the price would be sky-high at this time. The fact that prices are dropping so fast shows that it is a deliberate act by the oil companies to help the Bush Regime out in this election season.

Just watch those prices jump the second week in November.

[mccoyn]

27. Or they closed the pipeline now because inventories were high.

Or they pumped up inventories before closing the pipeline to cover the gap and they didn't need so much.

[A wise Man]

26. Let's get real here

The media, this repug congress, this administration and above all THESE OIL COMPANIES, all think we are fools. They say it, we believe it, they give excuses, we believe them, maybe they are right, maybe we are fools. The price of gas and oil had no legitimate reason to raise the prices in the first place. After Katrinna they raised the gas prices using the hurricane for an excuse when the gas prices were raising since 2002 without regulation. Now they're lowering them slightly to appease our pockets and knowone knows why. The answer is, "We are stupid or some of us are".