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?

Posted by KOOK on 6/20/2011



Labels:

Comments (6)

Loading... Logging you in...
Dashboard | Edit profile | Logout
  • Logged in as
0 Vote up Vote down
madmath1's avatar

madmath1 · 719 weeks ago

Given this evil administration and their minions, I wouldn't put nothing pass the them, including artificial price declines in the gasoline markets only to really screw us when the election is over.
Loading...
+1 Vote up Vote down
Andrew33's avatar - Go to profile

Andrew33 103p · 719 weeks ago

Gas prices decide elections. Period. They will have a hard time keeping gas prices low when a monster hurricane clobbers the gulf coast drilling/refinery areas in the last week of august. (I'm going out on a limb here). They are going to have to put quite a bit of downward pressure on the market to get fuel prices anywhere near re-election territory. I'm not convinced BHO will be the Dem nominee. His approval is at the point where primary candidates go after incumbents and funding (SOROS) moves to a more popular candidate. I don't disagree with your premise, but much of the downward pressure on the price of oil is demand shortfalls. Living here, I see trends in the economy that often spread to the rest of the country. Remember, the Housing crisis started here, as did the 2007 gasoline price spike. People here simply aren't driving therefore fuel stations are being forced to compete to sell their gas, often at a loss.
Loading...
+1 Vote up Vote down
Andrew33's avatar - Go to profile

Andrew33 103p · 718 weeks ago

Gas still begins with a 4 here. Much of the difference is in taxes. The tax system is structured to get the tourists aka "snowbirds". Given every person over age 60 in FL dives a Grand Mraquis/Town Car (no kidding), this taxation system works in redistributing wealth from old rich (White or Jewish) folks who don't live here, need it, and won't live to spend it to the state government that does (ahem..) and will (best believe that).
Loading...
+1 Vote up Vote down
Andrew33's avatar - Go to profile

Andrew33 103p · 718 weeks ago

Gas was down to 383 for premium today...imagine that.
Loading...
+2 Vote up Vote down
claybowler1's avatar - Go to profile

claybowler1 93p · 718 weeks ago

I think its too late to help the summer economy. We are almost to July and school will be starting again in six or seven weeks. People are already planned vacations. I do suspect that Obama will do a series of things to provide a "bump" over the next 16 months. Freeing up some reserves will produce a "bump."
1 reply · active 718 weeks ago
Loading...
+1 Vote up Vote down
Andrew33's avatar - Go to profile

Andrew33 103p · 717 weeks ago

It takes 6 months for a drop in oil to "trickle down" to the economy. BHO is trying to time the "bump" so that it seems like the economy is about to "take off" at election time. It's very possible that mother nature (AKA GOD) has tossed a little monkey wrench in BHO's plans since this year looks like a "gulf" year for hurricanes. This isn't my prediction, but the so-called experts' forecasting, as well as current events since Arlene is in the Gulf now. Going by history, they are absolutely right. Such things are cyclical and last season had everything staying far out in the Atlantic. Usually the year after that favors the gulf and the year after that favors the Carolinas. The same root cause behind the Joplin Tornado, upper Midwest flooding, continuing snows in the Sierra Ski resorts and drought in the desert southwest also favors a bad hurricane year for the Gulf Coast. If you dabble in the stock market, the trend for energy stocks is down, but if I were you, I would buy as come november you would either break even or get rich as BHO isn't going to do much to lower fuel prices, just what he perceives as enough but one cane in the Gulf and it's $200 a barrel overnight. With the economy in the state that it is, one Katrina type storm would send oil and gas prices into an uncontrolled spiral and shut our shell of an economy down.

Post a new comment

Comments by

Subscribe to: Post Comments (Atom)
Blog Widget by LinkWithin