when in the world are GAS prices going down? Are they ever going to get real low again?

Question

Im not an expert, but geez, the rates are ridculous!!!

feels good, how did I miss it?
I actually went to the target to stock up on fule cannisters, but the largest they had were like for 4 gallons.......How did you stock up?because of that I chose not to buy the gas cannisters....

I just bought a toyota corrolla 41mpg! Im very excited about that. So what, you guys are saying because they have gone up so much that they nkow they can get away with it so they will stay above the two dollar mark? what made gas prices go down after the 70's? Cmon guys, give me some better answers. While I do agre with the commetns that the high gas prices will stir up manufactures to come up with better mpg and alternative fuels, They are still raping us practically!

Answer 1

First of all you need to pause and take a deep breath. Second, I hope you understand that "high" is relative -- gas is much more expensive in many places, like in Europe, where they tax the bejesus out of it to fund social programs.

Its price is the result of the intersection of supply and demand -- both of oil and of refined gasoline. For the price to change, we either need more supply or less demand.

In recent months the supply of oil has begun to outstrip demand, to the point that oil stockpiles have increased and prices have fallen, and OPEC fell into a real panic. Now, OPEC is a cartel of socialist state-own oil companies from major oil producing countries. They want to maximize prices by limiting production. Recently OPEC had a series of emergency meetings to try to get everyone back on the same page as to limiting production to support prices, followed by public announcements of production cutbacks.

That is in fact the best hope for cheaper oil -- that OPEC members cheat and individually overproduce. This historically happens with regularity, and the cohesion of the cartel falls apart. Kind of goes in cycles. May happen again.

Another thing that would make gas cheaper is a worldwide recession, causing a reduction in demand. Perhaps you'd like that.

Answer 2

This Economist thinks that oil is at fair value. Ten years ago, gas prices were ridiculously low, last year they were very high, but right now I think they are both stable and fair. I should also note that I live in New York where prices are higher than average (and that I have assumed the questioner is also American).

Don't forget to adjust for inflation when comparing prices year-over-year.

Answer 3

Gas prices were low in the late 1990s because of the Asian economic collapse.

They were low in the mid-1980s because Reagan got the Saudis to start cranking out oil in exchange for guaranteed protection from Soviet invasion.

If such events ever occur again, I'd imagine you'll see something like that again.

Answer 4

Gas prices are already down compared to real and lawful money. Your Federal Reserve Notes are dropping in value. Big difference. The amount of oil an ounce of gold would buy over the last 40 years is basically unchanged. Federal Reserve notes are backed by nothing, so their value can freefall easily. The government would rather blame anything else than admit to allowing the money to collapse. Don't believe it, do a little research on the gold standard and why we don't use it anymore.

Answer 5

It's the law of supply and demand.
When supply is low and demand is high, prices rise.
When supply is high and demand is low, prices fall.
Regardless of supply, if sales are still strong, prices will not drop.

The prices aren't coming down because the fuel is still selling, and prices are always higher in the summer and winter (peak sales seasons). Everyone complains about the prices, and yet you still see grotesquely-large SUV's rolling down the highways because people would rather pay higher fuel prices than surrender their "status symbol vehicle".

Answer 6

When we get smart about being energy smart, drive fuel efficient vehicles or bicycles and realize what a gift public transit is, we will lower demand for petroleum products...and with demand..so go prices. Let the market work.

Answer 7

Gas was low this year yet, it has gone up 15 cents in the last months. I'm predicting $3.30 a gallon again!

Answer 8

When the supply is more than the demand the prices will go down

Answer 9

Well you kinda missed it. About a month ago, prices were pretty low, but they've started to rise again. Fortunately I stocked up.

Answer 10

I don't know but I do know someone somewhere is hoarding some oil. Maybe we can get MaGyver on the case.