June 20, 2011

Lower Gasoline Prices Predicted–Why?

The average price of gas nationally has declined to $3.67 ($3.34 this weekend in my area)a gallon from nearly $4 a gallon last month, and some forecasters predict prices will continue to fall through summer. Nonetheless, prices remain $1 higher than a year ago.

In a recent Wall Street Journal/NBC News poll, 69% of respondents said they had been affected "a great deal" or "quite a bit" by an increase in gas prices this year, compared with 55% hit by a jump in food prices, 28% by an increase in the unemployment rate and 22% by a rise in the number of home foreclosures.

Wallace Tyner, an economist at Purdue University in West Lafayette, Ind., said the volatility—and visibility—of gas prices have a great impact on consumer psychology. "Every gas station has the price posted in big numbers that are a constant reminder of the changes," he said

Okay, everyone who thinks that the big players in the market are nudging the price down in a play to help Obama’s approval ratings raise your hand…

Lower gas prices will certainly be better for the economy this summer.  It is probably the single best thing that could happen to our economy right now- helping everything from tourism to grocery prices.  Since this governments policy is not to allow more drilling here, and instead to continue to buy oil from the same people who are funding those trying to kill us – it is the only viable choice to help flagging political ratings.

And why is gas dropping in price?  Summer blends are usually more expensive, aren’t they?  Are we not still in Afghanistan and Iraq?  Did Israel and the PLO suddenly reach a settlement?  Are they no longer fighting in Syria?  Yemen?  Did achmadinajihad step down and a Israel/USA loving president take control of Iran?  Did India and China cut Oil Imports?

You mean that the flooding in Nebraska, Iowa, and Missouri and the fires and drought in the Southwest aren’t enough of an excuse to keep prices high?

What do you think?

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