Oil companies used to say that it takes 6 months after the price of crude goes down for the price at the pump to go down. This month I have seen about 10 years worth of price drops.
2006-09-24 11:28:20 · 26 answers · asked by Carlos D 4 in Politics & Government ➔ Other - Politics & Government
it hasn't gone down
The gas we used to get was 1.15 and then it went up to 3 bucks
and now since its 2.60 everyone thinks taht it has gone down
thats why were soo stupid. It hasn't well from 3 bucks it has but it was originally 1.15 wut about that? gas hasn't droppe
were stupid and the gas companies takes good advantage of that. they made last yr how much profit? SOO Much profit... they fooolin us and we too stupid to think. Be a lil more alert and get to konw wut's actually happeneing
2006-09-24 11:32:00 · answer #1 · answered by scshah123 2 · 1⤊ 3⤋
Remember Economics 101? Supply and demand explains most of it. This year instead of waiting until after Labor Day to reduce prices the prices dropped before to encourage people to drive. It continues to drop, as it always does, because demand is lower between the end of summer and the beginning of the winter home heating season. Towards the beginning of November when the northeast is using more home heating oil, prices will begin climbing again.
Really suspicious people will believe the oil companies are lowering their prices in case the Democrats win either the house or senate and initiate investigations into the (formerly high) gasoline prices.
Conspiracy theorists are saying that the prices are dropping to make people vote Republican during the elections. That is unlikely because if they took credit for the dropping price, they would have to take credit for the price increases.
2006-09-24 11:38:47 · answer #2 · answered by Anonymous · 2⤊ 0⤋
Si, Carlos, and T. Boone Pickens of Houston, who probably has as good a handle on this as anyone in the world, says it's going right back up this winter to about $70 a barrel and maybe falling to $60 a barrel next year. I'm roughing those numbers out since his article isn't in front of me. The media loves Chevron's big oil find in the Gulf almost as much as they like claiming that Bush is fixing prices (which is obviously impossible), but Pickens states correctly that the size of the Gulf find is still a big unknown and it won't be on stream for several years.
Hey "Genejohn", the BP pipeline never went down, just pumping at a reduced rate, but YES, that's a big psychological reason for the recent high prices, and realization that it ISN"T down is a good psychological reason for some of the price drop. BTW, you're not satisfied with BP's response time, and granted they frigged the kitty, but do YOU know where to buy 16 MILES of large diameter pipe, and get it to the North Slope, and how to get it all set in place and arc-welded together overnight? Do you have any idea of the union-negotiated time allotment for field-welding pipe? One 8-inch field weld is 4 hours, if I rightly recall, and now we're talking BIG pipe for this job, not 8-inch.
2006-09-24 11:38:38 · answer #3 · answered by senior citizen 5 · 0⤊ 0⤋
Oil companies don't want to be an election year topic. By lowering prices, slightly, people feel better. By taking the focus off themselves there is less likely a chance that price caps would become a campaigning platform as politicians will focus more on the division the war on terrorism has caused. After the election in 2008 expect prices to hit $4 a gallon on the average.
2006-09-24 11:43:27 · answer #4 · answered by sparkletina 6 · 0⤊ 1⤋
It's to do with confidence of supply and demand. It was a bull market (prices went up) when people demanded as much as could be produced. Meanwhile, oil companies stock up on reserves for fear of a drop in supply - part of why oil rose so much this past Summer (fear of Mid-East, fear of Hurricanes/local production).
Meanwhile, stocks are still high, production is still high due to the aforementioned fears, and demand has lowered since summer (demand for A/C goes down with lowering temperatures, there's less vacation travel), meanwhile fears over mideast seem to be settling and hurrican season is as good as gone.
It's about time the price came down! Two dollars a gallon is high, never mind three!!!
2006-09-24 11:57:10 · answer #5 · answered by warped_factor_ten 2 · 1⤊ 0⤋
oh, well, Bush must have called the oil companies and told them to lower prices. Then he called the gold and steel companies and lowered those prices also, along with virtually every mineral price with it. It's not just oil that has gone down. But I'm sure some will say it has to do with bush and an election year, even though he isnt running again.
2006-09-24 11:32:21 · answer #6 · answered by Anonymous · 2⤊ 1⤋
Don't listen to all of these polical bashers. It has nothing at all to do with elections, who is president of the country, or anything at all with politics. The price of gasoline is determined the same way any other commodity (bread, milk, make-up, computers, etc...) is determined. The basic philosophy of economics: Supply and Demand. The summer driving season is over, people are not driving as much or as far. The demand for gasoline is not as high as it was during the summer. The people that sell gasoline want to continue selling gasoline and they want maintain a high demand on their product.......so they lower prices to encourage customers to buy their products.
2006-09-24 11:43:54 · answer #7 · answered by pseansum 2 · 2⤊ 0⤋
The summer vacation season is over, school has started back up, and demand for gas is dropping. They probably COULD have dropped the gas price earlier this year, but couldn't stand the thought of losing all the extra summer profits!
2006-09-24 11:36:40 · answer #8 · answered by DangerMom 3 · 1⤊ 0⤋
Best Answer - Chosen by Asker
More production worldwide, if the supply is greater than the demand. The oil companies don't control oil prices. If they did in 1999 when oil was $12 a barrel and it cost $14 to produce, they would have done something about it.
OPEC controls the prices.
2006-09-24 11:34:02 · answer #9 · answered by eferrell01 7 · 4⤊ 2⤋
10 years?... don't think so.... In case you hadn't noticed, the price of gas always drops after labor day... goes up again in for the Winter season.
2006-09-24 12:22:08 · answer #10 · answered by lordkelvin 7 · 0⤊ 0⤋
Massive oil find in the gulf.Plus they are no longer having to blend the massive number of different summer fuels.
Most of the cost at the pump is due to speculators trading futures.http://en.wikipedia.org/wiki/Futures_contract
2006-09-24 12:02:17 · answer #11 · answered by ? 6 · 1⤊ 0⤋