Why did gas prices increase and then decrease and where can I find a graph or chart on it?

Question

It's for a science project me and a partner are working on. Please help! Web links are welcome! ;-)

Answer 1

You can believe all the conspiracy theories, or you can believe the real economic reasons.
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Gas prices always fall after the summer driving season is over (demand decreases). They always rise for the winter (oil supplies are use to produce heating oil as opposed to gas).
The large increase/decrease this year was caused by two abnormal events.

FIRST:
Last summer two hurricanes (Rita & Katrina) swept through the Gulf of Mexico. A large amount of supplies were knocked offline due to all the damage of offshore drilling rigs. Oil infrastructure was also damaged on land in South Louisiana.
>>This led to immediate price increases.

Due to the damage done supplies were being built up since the hurricanes of 2005. Everyone (environmentalist, National Hurricane Center) predicted another year of increased hurricane activity with major storms. This caused 2 things:
>Increased supply build-up for expected shortages
>Spectulators increasing the price of oil futures in anticipation of hurricane damage and shortages

What happened?
>Not one major hurricane in the Gulf and zero damage to oil infrastructure.

The rusult?
>A ton of supplies had been built up that hit the market and lowered priced.
>Speculators stopped bidding up the price of oil because no hurricanes caused damage like last year.

SECOND:
BP announced (beginning of August) that they found damage to pipelines and that Prudhoe Bay production would have to be temporarily shut down (decrease in supple causes increase in price)
Dire consequences were predicted. (not by BP, but by economic forecasters and media) This caused speculators to bid up oil futures(prices).

What happened?
>Some of the oil was rerouted and only half of production was stopped.
>Repairs did not take as long as anticipated and enough oil was rerouted so that full production has been completely restored

The Result?
>Speculators had no reason to speculate and oil futures dropped.
>Supplies disruptions were minimal.
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The link is a graph to oil per barrel prices, not gas prices.
http://www.wtrg.com/daily/crudeoilprice.html
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Answer 2

Keywords:

OPEC
BUSH
Pridcution vs. Consumption
Regional Conflict

In short, production rises 1% a year on average, consumption rises more then 2% a year. We are not running out of Oil, we are just failing to meet demand, hence prices go up.

The reason prices started to Dip in October was Bush asked the Saudi Royal Family to increase OPEC production so Gas prices would not be an issue in the 06' election.

Answer 3

The gas prices decreased because of the elections that took place last month. As soon as it was over, prices went back up. Just do a search for 2006 gas price listings.

Answer 4

It relies upon. the international financial device has been booming for a protracted time, for that reason call for maintains to extend, which has extra desirable cost. If the international financial device maintains to develop, then particular we are able to work out extra cost will develop, quite if call for is extra desirable previous the levels right this moment. Now if the international financial device falls right into a recesion, the call for for oil will fall which will low value. Ofcourse there could be a topic, the place the economies decelerate and in tandum there's a grant disruption of oil, which might reason expenditures to extend termendously. I cant are looking forward to the financial subject 5 years from now, so thatis why I gave you diverse circumstances.

Answer 5

they probably decreased because of the elections and then when the elections are over the increase slowly. i also heared that their is a gas leak somewhere i am not 100%sure

Answer 6

Wikipedia, the free encyclopedia is a good website.

Answer 7

try gasbuddy.com

Answer 8

Corruption.