Do you think that the GAS prices decreased for a political reason ?

Question

Some say yes others say no! do you think they will stay low? personnaly; I think it will go up after November!

Answer 1

I am sick and tired of uninformed people and their comments on gas prices. Here are the facts:

1. Gas prices are very complicated and set by markets. No one individual or group controls them.
2. Gas prices are subject to supply & demand.
3. Gas prices spiked in 2005 because Hurricane Katrina damaged a lot of the production facilities in the Gulf.
4. Since we do not drill for oil in most of America, there was a big supply problem.

Why prices really went up to $3 a gallon

1. In April, Congress refused to pass lawsuit protection against MTBE makers.
2. In response, ethanol became the additive of choice because so many American farmers can produce it. Yes, this was a political decision.
3. The market was not prepared to create enough ethanol to supply the markets.
4. Thus prices went up.
5. To further aggrevate the situation, we were about to hit the peak driving season: summer, where gas prices always go up.
6. Many states, especially CT and NY have variable tax rates, which means the taxes go up as prices go up. This compounded the rise in prices, which also compounds the fall of prices.

What do we need to do to keep prices low

1. Drill for oil in America. This means ANWAR, CA, TX, the Gulf of Mexico, etc. We must create more supply to satisfy our growing demand.
2. Also promote other viable forms of energy: coal, nuclear, clean, water, etc. Allow the markets to use whatever is financially viable.
3. Create one national blend of gas. We have more than 50 blends now and this is very expensive. You do not understand how gas prices work.

Answer 2

I am very encouraged by the large number of responders who "get it" and understand the world oil markets.

I wish that the conspiracy theorists who think oil and gas pricing is only political would do a lot more critical reading about commodities - a little bit of additional knowledge would help them look a lot less foolish.

For starters, they should read "The Prize: The Epic Search For Oil, Money and Power" by Daniel Yergin, PhD. Awarded the Pulitzer Prize in 1992.

I read this book 10 years ago and it is a valuable resource to understand how oil became a critical world commodity, beginning in the mid 19th century.

As for oil price predictions, look to the commodities futures markets - traders put their money on the table every day, and place bets about future oil and gasoline prices. They have a lot better feeling for prices than I do.

Answer 3

If people think Bush has that much power, to control the price of oil, then we don't need to have any election and he can name his replacement. Of course, he was accused of driving the killer Katrina into New Orleans because of the poor black community there.

Oil is bought on the open market and when the demand goes up, like during the summer, or a bad winter, the price goes up. When a oil producing country reduces its output, the price goes up. If we have a bad or cold winter in the US, the price will go up.

Its called supply and demand. They have the oil, and for what ever reason, we need it, and will pay the going price whether we like it or not.

Answer 4

No. Economic and environmental reasons.

1. Economic: supply and demand, oil demand in the US decreases between labor day and the beginning of the cold season.

2. There were not the promised 20 hurricanes in the Atlantic to disrupt supplies. The prices that were raised in the spring, decreased in the fall with the end of the Atlantic hurricane season.

Answer 5

Ever hear of the laws of supply and demand? Our high prices this past summer curbed consumption creating a glut of product on the market. The glut forced the producers of white goods (gas, diesel, etc.) to reduce the wholesale prices in order to clear storage for winter product. In turn, the demand for crude oil dropped so OPEC drops the price or cuts production whichever is in their interest.

In other words no it isn't political. When we stop driving gas hog SUV's in places like L.A. and NYC prices and consumption will drop even more.

Answer 6

No, they decreased for market reasons. What politics would cause prices to go up or down? Because the oil companies love GWB so much? Seriously! They are out to maximize their income and profit, period. Bush is done in two years and then will be worthless to them...

Answer 7

NO
Oil is a BUSINESS and has both Democrats and Republicans that worked there.

Oil prices were affected by the hurricanes, the war, and many various factors. Things are a little more stable now - hence the drop in prices.

Answer 8

Yes, the politicians and the oil companies are gouging the American people. Why else would it be down now after the record high prices at the pump this summer.

Answer 9

Oil prices are traded on the WORLD market. If prices go up in the US they are going up around the world and visa verse.

Answer 10

No, good grief - do you see conspiracy's everywhere? There are a lot of things that affect gas prices - it is a WORLD market. We also have had a mild hurricane season.