Why has gas dropped in price?

Question

I'm not complaining but here in California gas has gone down some 30 cents or more in the past two or three weeks. When world wide supply and consumption has not changed that much how can this be. We are lead to believe the sharp rise in prices is fueled by simple supply and demand. Does this sudden drop right after Bush lifts the ban on off-shore drilling prove that it is a good idea or that the prices have always been governed by more than just supply and demand and can be changed at will by those in charge?

Answer 1

elections are coming up it always drops for that. It will shoot back up for Labor day then drop again.

Answer 2

1. Demand really has gone down during the last few months, especially in the United States.

2. Prices always peak in the U.S. around Memorial Day, and then start coming down again.

3. There was speculation in oil markets that drove prices up; that appears to have ended and prices are returning to more natural levels.

4. The other three factors have helped the dollar bounce back on world currency markets, which reduces the price as well.

Bush's action really has nothing to do with it.

Answer 3

gas prices drop around election time

Answer 4

well if you believe John Mccain you should blame Barack Obama for the price dropping