What explains this spiral?
2006-09-27 13:24:07 · 19 answers · asked by . 6 in Cars & Transportation ➔ Other - Cars & Transportation
There are many factors that are causing this...
1. The US oil reserves had previously been depleted by Clinton and are now back to full capacity.
2.Lower demand because summer is over
3. Since the demand is lower and we have the reserves again, foreigh producers have had to lower the price of crude per barrel in order to sell it.
4. All the refinerys that were damaged by Katrina are now back in full operation.
It's a very complicated formula that dictates gas prices but the above are several easons why it's spiraling downward...
I hope this helps..
2006-09-27 13:34:34 · answer #1 · answered by john s 3 · 1⤊ 2⤋
1~ politics... this happens in almost every election season with the exception of the Jimmy Carter years.
2~ the oil companies are making so much money that they have started buying large shares of automakers (can we all say conflict of interest???) And since the SUV's and other cars using lots of gas are going the way of dinosaurs this past year the will play the game to boost sales and boost their investments.
3~ Chavez is getting out of control and if the Arab, US and European companies don't begin to reel him in by controlling his asset gains he will very shortly become a very large regional problem... again they are protecting their assets and the politicians they have placed in power who cater to their every whim
4~ OPEC is trying to befriend the US and Europe again because China is beginning to introduce alternative technologies - threatening the "golden egg" they thought they had
5~ Lastly they reduce to lessen the blow when this winter fuel oil and gas increases again as it does every year
Just my thoughts
2006-09-27 13:38:44 · answer #2 · answered by sunsetsrbest1 3 · 0⤊ 0⤋
Just in time for November elections. For the blind eye from GW and record profits, Oil Executives want to reinforce the belief, that Republicans produce results and mindset for profit can come back next Spring when the American people aren't looking.
2006-09-27 13:30:53 · answer #3 · answered by mikey 4 · 1⤊ 0⤋
gas prices are not plumetting, they are superinflated at such a high cost over the market that they can reduce the price to serve whatever political agenda to quell the american public from giving their selective representatives the booth from office.we as a country are so busy trying to make a living that we fail to band together as one and keep whomever that,s responsible to keep their hands out of our pockets,the test site for such scams was started in california where there are more cars per capita ,hence more people to squeal if it fails,then walla they got so accustomed to the hikes in the summer that it became permanent and the government loves it because the taxes on gas is as high as the roof almost half of the cost,then ,how do you pay as a consumer the let,s say$ 225.9 cents per gallon ,how do you pay .9 cents? this further raises the lack of consumerism in us as americans ,that we make money,and spends it anyway because there are not enough incentives for us to save a buck,which in fact would make the economy strong but we hav a never ending line of credit nationally so we inflate the deficit and keep not trying to conserve,our whole attitude as a nation have to change for us to stop being duped by our own addictions,when we learn to conserve as a nation and stop corporations from gouging us we will learn to pave a future for the next generation,when will that happen ,maybe not in my lifetime,there are people with enough information to play with the public physcologically that they make money hand over fist even as they sleep,because our habits allow it.
2006-09-27 14:37:19 · answer #4 · answered by delmy d 3 · 0⤊ 0⤋
Republicans want to hold there offices! So back room deals have been struck. Saudi Arabian interests have been told to increase production a month ago resulting in surplus production in our aging refinery's. Fuel oil has to be made now and the summer rush is over so prices fall. Political economical and you and I are left wondering why can't we have modern refinery's inland away from hurricanes?
2006-09-27 13:35:39 · answer #5 · answered by John Paul 7 · 0⤊ 1⤋
coming up on an election yr soon.....lobbyists are finally doing something about it. This is not a fact just my opinion...they could have done something some time ago. Look at chevron and standard oils annual report and see how much they really made in the past 3 yrs
2006-09-27 13:28:17 · answer #6 · answered by Kenneth S 5 · 1⤊ 0⤋
-Bush has embraced diplomacy with Iran, a major supplier of oil to the US which has eased fears at the oil market tradings. (Gee just in time for elections)
-Oil companies have been hoarding oil in recent history just in case of supply disruptions. Now the oil market is indicating they don't need some of those stockpiles.
-Summer demand is over.
- Gulf coast refiniries are establishing themselves again. Katrina hurt them bad.
- a few other lesser reasons.
2006-09-29 13:52:03 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Elections are coming up in November. Heating oil will go up after the elections.
2006-09-27 13:28:00 · answer #8 · answered by Anonymous · 2⤊ 0⤋
as far as I know...I heard on the news. that they found mass amounts of oil somewhere between mexico and texas. so we currently don't need as much shipped from overseas. I'm also not ruling out politics, I'm sure it has something to do with it. just that part we will never know.
2006-09-27 13:33:57 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Because there is an election in 41 days.
2006-09-27 13:32:25 · answer #10 · answered by First Lady 7 · 0⤊ 1⤋