2006-09-12 17:21:49 · 14 answers · asked by dugoutburner22 2 in Social Science ➔ Economics
There may be several factors causing the drop of gas price. Candidates for the 2008 presidential elections should be coming out soon. Midterm elections are occurring. This can be part of a political stunt for more favorable votes. Another factor is summer just ended. Summer is the time that people go on vacations, which means they use more gas. More gas means there is more of a demand for it, which increases the price of gas. As summer ends, people are settling down and going back to what they do throughout the year (work, school, etc...). The demand drops, which means price also drops.
2006-09-13 05:03:07 · answer #1 · answered by Te 3 · 0⤊ 0⤋
There can be several reasons.
World market and price of oil changes for a number of reasons. Wars, natural disasters, political situations, supply and demand.
Biggest reason here in the U.S is that the busy driving (vacation) season is over for many people. Which translates to "more supply and less demand".
Our oil companies may be concerned that people are getting very upset about high cost and will put pressure on Washington to put in price controls. .
2006-09-12 17:34:14 · answer #2 · answered by conetoe 3 · 0⤊ 0⤋
The discovery of a huge amount of oil in the Gulf of Mexico makes it an alternate source of oil supply- most notably, not coming from the war-torn Middle East, so gas prices are coming down.
2006-09-12 17:31:21 · answer #3 · answered by Kate D 2 · 0⤊ 0⤋
The price of gasoline always drops after Labor Day. It will go up again at Thanksgiving time and again over the Christmas/New Year's week.
The old supply and demand thing again, as well as price-gouging to produce record-shattering profits for the oil companies.
2006-09-12 17:32:41 · answer #4 · answered by Anonymous · 1⤊ 0⤋
People would say supply and demand but that's not true. Supply is higher than the 5-year average but so is demand. The hedge funds have been playing with oil contracts for awhile now and they are all getting out at once.
2006-09-14 13:42:53 · answer #5 · answered by Steve R 6 · 0⤊ 0⤋
The crude expenses dropped from $one hundred forty to $one hundred twenty five. the fees have been artificially inflated with the help of the wall highway speculators. Now that human beings are ultimately lowering on utilising, the wall highway speculators are merchandising extra suitable than procuring (utilising the fees down). So now the gas expenses have ultimately dropped. good success...
2016-12-18 09:23:16 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Supply and demand. Oil production is high but consumption is down, resulting in excess inventories. When supply exceeds demand, prices fall.
2006-09-12 17:28:16 · answer #7 · answered by Anonymous · 2⤊ 0⤋
gas is going down so much because all the different companies are competing and not alot gets used if u have central heating
2006-09-15 04:45:30 · answer #8 · answered by tracy_m 1 · 0⤊ 1⤋
Didn't they fix the pipe line in Alaska? I wish our gas is going down but it is not!
2006-09-12 17:29:43 · answer #9 · answered by Anonymous · 0⤊ 1⤋
Because they knew democrats were investigating price gouging. There is no way that demand fell THAT MUCH in just the past week!
Besides the republicans are trying to get re-elected.
2006-09-12 17:29:18 · answer #10 · answered by Anonymous · 0⤊ 2⤋