do you think gas price will go up or down and the reason why?

Answer 1

Click on my mug shot & search my answers ... I have answered variations on this before in greater detail.

Gas prices are not like the stock market, where the price goes up the price goes down, when it gets very high, there is a stock split, very low the company goes bankrupt, so over time the ups & downs cancel.

Gas prices will fluctuate, but in general for the next few decades they will go up up up.

This is because when you look at the total world supply & demand, there is more demand than there is supply.

There are some nations, like China, India, whose economies are eperiencing extremely rapid growth, so they are eating a lot of the world supply, that was ample before they had the good fortune to get good economies.

The places that make the supply, deliberately reduce the supply made available, becuase less supply means higher pricing. Economics 101. It is not a free market system. It is controlled by a group of nations. OPEC.

But even if they were not doing that, the world is running out of oil. We do not have an infinite supply. It will become more and more difficult (expensive) to get the last drops out.

We need to get serious about investing in alternate energy.

There's also a branch of the stock market called "futures" where people gamble on future prices ... they are not interested in the prices being fair to the people buying the gasoline, they are only interested in them makeing oodles of money.

Remember ENRON and the California Energy Crisis.
Years later it was discovered that the energy crisis was artificial, engineered by ENRON to maximize their profits and to hell with the people of California.

The future's market is like that, and totally legal.

With respect to the fuel supply coming into America, there are many many artificail bottlenecks, which reduce the supply, and economics 101 drive up the price.

For example, we know there is oil to be gotten from the ocean floor, but we only get it in the Gulf of Mexico, not from other off shore. Thus when there is a hurricane down there, like Katrina Rita ... this is a seasonal risk, that cuts off the supply for a while.

How come we not get oil from east coast west coast?
Well there's people who think that a few oil wells off the coast would hurt their tourism, which is more important to the states there, than arranging for the gasoline prices of the nation to be 50 cents a gallon.

Do you know which companies in America are making the most money? Oil companies.

Refineries are designed to work good for some # of years, and now are dying of old age. Why build new ones when making oodles of money with the pinched supply and refineries breaking down all the time?

Oh lots more reasons ... check my past ansers ... I am too lazy right now to go find them & cut and paste same answers here.

Answer 2

I think the price of gas will never come back down again to the point that it doesn't put a strain on us to buy it. The reason is because when the people selling it know that we have to and will buy it they just see dollar signs.

Answer 3

I'm sure they will go up. It's all supply and demand. The only way that it will drop is to have our demand drop. I doubt if that is going to happen anytime soon. The oil producing countries will always do what benefits them and they are controlling the price of oil, and the gas stations are a little greedy too. Good luck.

Answer 4

It will continue to go up, and go up, and go up. Because countries like China and middle eastern countries have government mandates which will only allow gas to go so high. Much like how the U.S. keeps Diesel prices steady, as that directly affects a vast majority of our businesses. But because those countries pay so little, someone else needs to pick up the slack. Thats where we come in, and in reality, we do have cheap gas. Check my link if you dont beleive me, how does $5.00 a gallon sound? Thats life in the UK...

Answer 5

Well... seeing that prices here in Michigan have been hovering between $3.35 and $3.45 for the past month and a half, I don't think it will go up. It will go down, but only after the fuel companies switch to their winter blend fuel, which is always cheaper.

Answer 6

Over the short term, they will go up because currently there is more demand than supply, especially as emerging economies such as China and India demand more and more fuel. However, over the long run, new technologies such as hydrogen fuel cells will reduce demand, lowering the price, but this may be many years in the future.

Answer 7

Prices never go down. Get used to it. We have before.

Answer 8

Right now it has gone down just a bit $2.99 a gallon, not to bad considering. I think it will hover for awhile. After the election in 08, that's when we will find out.

Answer 9

I think it will be a fluctuating trend for the rest of the summer.OPEC has their own problems dealing with this country enough as it is!