Is it a coincidence that Gas prices are lower as the Oil Companies are being investigated 4 price fixing?

Question

What are your thoughts?

Answer 1

Its not because of that.  Its, as many state, a big issue of supply and demand.  Demand has been down lately.  Particuarly in the US and other places maybe.  But yes, demand has fallen.  So that causes prices to go down.

But this drop is volatile.  It could go back up.  Things can make it shoot forward.  As another user said, if Iran does something, it could make prices go up.  Or if countries suddenly reduced supply- which I don't think will occur, but could happen- then prices would go up.  Its a shaky thing now.

Oil prices are unstable sometimes.  Its mainly supply-demand..:o/  

Answer 2

No it's a case of supply and demand. Think about it. The United States isn't a player in the world market, we haven't explored for new oil for over 20 years.

Oil prices drop, Iran does missile tests, prices shoot back up again. Rumors of rebel activity in certain African oil producing countries produces the same result. Pirates attack an oil tanker, another world oil pricing panic results.  

Bush recommends lifting the offshore drilling ban, means potentially more crude on the market so prices drop. Off shore drilling, exploring for new sources of oil in Alaska?!? Of course it'll ever happen.

It's out of our hands folks. Too many people in our government WANT high oil prices, remember global warming? Then again force people out of their cars what's left? Public transportation, much easier to control the masses that way. Right out of the liberal playbook.

Say you find a kimberlite pipe on your property. So you've got a diamond mine. Who'd be one of the first people to knock on you door? Bet it be a member of the diamond cartel. Don' t even think about selling your diamonds on the open market because you either play ball with them or not at all.

Ever hear of OPEC? What about the De Beers Group? The Mafia can't hold a candle to either one of them.

Answer 3

Congress went home. No one is investigating anyone, now.

Stuart Varney predicted that when the Chinese quit hoarding, as they were getting ready for the Olympics to be certain they had enough fuel, and because they bought so much diesel fuel after the earthquake, that prices would come down.

China's purchases have fallen drastically, and so have the prices big by speculators.

The oil companies make the same percentage of profit no matter the price of gas. If the price came down and people used more for summer vacations--which they didn't--or for weekend holidays--which they didn't, they would sell more gas. It is not in their best interests to have to pay high prices to the Arabs and Russia and Canada and Venezuela. When the prices are high, as you say, Congress investigates.

Answer 4

Yep, and it's just a coincidence that the drop in gasoline was preceded by a drop in the raw material form which it is made.  

Answer 5

the dip in oil prices is temporary at best and it was due to demand destruction not any investigations.  the oil market is only going up in the medium to long term.  just look at the fundamental facts and you will see for yourself.