july, $4.40 a gallon, december $1.80. justify this please !

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gary s

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not complaining at all, but how does fuel drop almost $3.00 a gallon in 5 months.

it is just so unbelievable that it can fall that much in such a short period of time.

also, how about those investors who jumped in when it was over a hundred a barrell and they thought they were going to make a fortune.

just thinking out loud as i was filling up tonight and it cost $34.00 versus near $90.00 in july.
 
Supply and demand, the price was up because everyone wanted to drive big trucks and suvs everywhere. When the rest of the economy tanked they couldn't afford it anymore, demand went down, and now the price dropped.
 
Note how many prious.s and mini coopers are on the road, how few hummers.

We have gas again:banana: reminds me, need to take my beano before bed:lol:
 
Boggles the mind doesn't it? All I can figure is the speculators driving it up and once demand went down, they bailed. Even at that, lots of $ was made speculating but lots of $ was lost by those same speculators in the end. Much like a pyramid scheme.



BTW, I filled the ST and my P71 lastnight @ $1.29 per gal. Both for about $20 less than the ST alone just this past summer!!!
 
Now that's progress JK. I'm assuming diesel??? Still, WTF is up with diesel still being so high???
 
I think that Dave S. has it right. Speculators were pushing the price of a barrel of oil really high. When the credit crisis hit, suddenly the speculators realized that people were going to have less money and try to use less gas to save. So they ran, and the price of a barrel dropped like a stone. He is also right -- there was alot of money gained and lost there.



Rocks
 
Yeah OPEC is planning on cutting production of oil by 2,000,000 barrels a day to try and up the prices
Click to expand...



Upon its announcement today, oil dropped $3/barrel. I hope it continues. Or, alternatively, let's raise the price of wheat and other foodstuffs. I mean, our economy needs a boost, too.
 
Now that's progress JK. I'm assuming diesel??? Still, WTF is up with diesel still being so high???
Click to expand...



Yeah. I wish I knew why it was so expensive too. I saw it today for $2.55. I'm happy though since its cheaper then when I first got my dually. I wanna get back to driving the ST.
 
Two reasons:

1. Speculators made the price higher that what the market could support.

2. Slow economy reduced demand and the speculators backed out, reducing demand further.



I'm sure it will be back to $3 or $4 a gallon again by summer.
 
The reason for the price drop:



Speculators (aka "Wall Street scalpers") made the crude oil commodity scarce. Our driving habits haven't changed that much. Right up until the economy crumbled speculators could borrow big bucks, buy up crude, hold it for a few weeks or a month and the sell and make bizzilions. In Oct, Nov with credit harder to get and everyone in a panic in the stock market the speculator market for crude dried up.



So, people like to say "supply and demand", but that's simply not true. Whether it be a ticket to a hot rock concert or Wii Fit on eBay, scalpers are scalpers. They typically have the money to buy up in larger quantities and create their own scarcity.



This, IMHO, is not "supply and demand"...it's artifical scarcity and market manipulation.



TJR
 
I don't agree with the statement "our driving habits haven't changed that much".



It's been talked about on the news channels I watch how Americans have cut the miles driven by billions of miles, beginning when gas started it's climb to stratosphere. And worldwide miles have decreased by the same proportion. They've also found that even though gas prices have fallen dramatically, consumption hasn't increased accordingly. People have gotten used to driving less and have made it part of their lifestyle.



I feel that if gas starts inching upwards again, consumption will decrease even more, and, along with the fact that more people have started driving more fuel efficient cars, the demand for oil will continue to drop.



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I have to agree with TJR on this one. People may have cut back some on long trips but they still have to drive to work, the grocery store, etc. I bet if most people checked their average miles driven per week it hasn't changed all that much in the past year. Heck, the F-150 was still the best selling vehicle for 2008. Also, don't forget that we are not the only country in the world that uses oil. If anything, world oil consumption has probably gone up in the past year due to emerging markets like China and India.
 
Except emerging markets have been hit even harder than we have. World wide demand for oil has dropped. In addition, the future demand is anticipated to drop even further. It is always a great deal to buy what you know people are going to need a lot of. It is more risky to buy something when the demand for it is dropping. If there was not a real drop in demand, OPEC would not be cutting production. One of the good things about the drop in prices is the money it is taking away from countries like Venezuela and Iran. The drop in prices may cost the current regimes some support when they can no longer buy the people's loyalty.
 

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