Since Crude oil is starting to fall because of low demand, will that lower gas prices too?

Question

Please?

Answer 1

Crude oil prices falling because of low demand? The price of oil is at record levels in real and absolute terms, and Goldman Sachs has predicted a rise to $200 a barrel by the end of the year. Demand is still steadily growing, so price will keep on rising.

Don't expect to pay less for fuel any time soon!

Answer 2

Don't expect oil to fall.  You have insurance in case you die?

insurance for your car, home...?  Then just buy some oil ETF's

For example, if oil goes to 200, and you invest just $2k.  The difference you'll profit will offset the increase in gas and food.  I started doing this at Bush's inaguration.  I turned $4500 into almost $30k in seven years and I'm still long.  But, I will be buying some short term puts to insure the short-term downside.

All you have to do is travel anywhere wheter it be abroad or domestic to see the increase in demand for oil.  As the world becomes smaller and emerging markets grow, so will the demand for oil.  Moreover, we in America are just spoiled and wasteful and will suffer because of it.  Just hop on any interstate east of the Mississippi and you'll see people doing 80-90mph.  Yet, they complain when they pull up to the gas pump.  Want to save gas and affect demand... Slow TF down, conserve, recycle, and don't waste.

Answer 3

It will, but at a slower rate than the increase happened.

Answer 4

Yes, but...

(1) Gas prices tend to trail oil prices by a couple of weeks because it takes time to refine the oil (i.e. we're still using gas made from a week or two ago's oil)

(2) Businesses are never as eager to lower prices as they are to raise them, so there will probably be a bit of extra lag time there.

(3) Part of the run-up in prices is due to the fact that gasoline changes formulation for the summertime, and the summer formulation is more expensive.  You won't be seeing that portion of the increase roll back until the fall.

Answer 5

Oil & gas prices only go up as far as the Customer is concerned.

So I dont think the falling crude prices will benefit the Consumer