Do you gas company conspiracy theorists now admit its supply and demand?

[DougMD]

I see a price of oil is now in the low 60's with an article on Drudge that it may go to the 40s. Come on, admit that gas stations DO lower prices when the price per barrel decreases, that it isn't all about just jacking UP prices for profits.

[kevin1]

They don't usually reduce their pump prices unless their competitors do, and usually at a far less rapid rate of decline than the oil prices.

[falcon]

The recent decline in the price of oil has much to with the worsening world recession.

[ipscshooter]

It's a conspiracy by Dick Cheney and Halliburton to lower the prices before the election to sway votes to the Republicans...

[Fieldmouse]

I'm personally praying now for higher barrel price. I'm totally serious about that guys. No more talk about cheap oil will be coming from me.

[kevin1]

ORIGINAL: Fieldmouse

I'm personally praying now for higher barrel price. I'm totally serious about that guys. No more talk about cheap oil will be coming from me.

Since cheaper energy always spurs growth I don't see how you could possibly want that unless you're ass deep in petroleum futures.

[Fieldmouse]

ORIGINAL: kevin1

Since cheaper energy always spurs growth I don't see how you could possibly want that unless you're ass deep in petroleum futures.

Let's just say something like that!

[Arthur P]

Demand, yeah, but that's only part of it. You gotta also look at futures speculators losing their shirts in the market collapse.

Some of the big energy speculators in the U.S. are/were Goldman Sachs, Morgan Stanley, Citigroup and J.P. Morgan Chase. They don't have much money left to go dabbling in the commodities market like they did six months ago. Some estimate 60% of oil prices were due to speculation.

[DougMD]

Speculation goes on what the true expectation is of the future price, which is driven by supply and demand. That is why futures prices trend toward the spot price as expiration nears. Oil prices exploded because there was an underlying assumption that the world economies would not collapse. That is not the case now...

kevin, I agree with you, prices go up at pumps right after barrel prices increase, and go down more slowly after barrel price decreases.

[Lanse couche couche]

Gas is now down to about $2.00 in some parts of Ohio. At this rate, and accounting for inflation, gas will soon cost less than it did when Bush took office. If the prices get that low and hold, Bush's exit approval rating may be a bit higher than people think.