Changin gas prices recently

Question

so everyone is so worried about the gas prices...but recently the news are saying that the berrel is going down...so will it really get down? or will it get even higher?

Answer 1

It is going down in my state it is 3.52 at my station  and thats a big drop so sounds good to me.Yet i think it will go back up soon  but not real bad  i hope

Answer 2

There are two reasons that people give why the price of oil has come down a little in the last couple of weeks.

One reason has to do with the election.  Since gas companies don't really compete, they can charge whatever they want.  So they are lowering prices before the election to make the economy look better so we will elect another Republican.  They LOVE Republicans.  I mean it's not a coincidence that our president, vice president, secretary of state, and about 30 other top officials in the administration come from the oil industry, is it?

The other reason I think is more likely.  The high cost of gas is not because there is a shortage, or because the cost of production has gone up.  The reason is that the war in Iraq has destabilized the Middle East, raising the distinct possibility that it will spread and become a regional war.  If that happened, the Straits of Hormuz could be closed off, which would cut off the entire supply of Middle East oil to the whole world.  You think gas prices are high now?  Whoooey!  So speculators are driving up the price of oil futures in anticipation.  You notice that every time Bush makes a speech saber-rattling about Iran, prices go up.  Every time it looks like he's softening his position, prices come down.  Last week Bush announced he was sending an envoy to Iran to negotiate with them, something that for years he swore he would never do.  This 'flip flop' defused the situation considerably, which is why prices have come down a few bucks a barrel.

Will gas ever be $1.70 again, as they were when Bush came to office?  Probably not.  We might never see $3 again.