Why are gas prices dropping?

Question

Why are gas prices dropping?

Answer 1

Because big Oil wants the Republicans to win.

Answer 2

supply and demand.

Oil speculations have been changed.

People are buying smaller cars, using less gasoline, being more responsible for their own actions.  If you are using less, there is a need for less, and since it is already being processed, that which exists will reduce in price.

Answer number 1 is so right.  Traders picked these numbers AGES ago, and the strength or weakness of the American dollar even comes into play on the world market.

I drove past a used car lot yesterday.  They usually are packed full of pickup trucks and SUV's with a half a dozen cars.  When I saw them yesterday they had about a dozen trucks on the lot, and around 45 to 50 cars.  Sign of the times, for sure.  Even in Texas where bigger is better, people are trading in their 8 cylinder SUV's for compact cars.  I like it, honestly.  Responsibility for the way things are is on all our heads, not just the government.

Answer 3

Simple.

Marketing manipulation, & inclined-interests.

Answer 4

My guess is that the Oil Producing Countries are making huge profits on the ups and downs of the---oil futures market----tremendous proftits on the way up and they took that profit and invested it in shorting the market and are now making it on the way down---and using the total to buy up our country's assets.

Answer 5

uhh my answers probably waaaay less great and knowledgable than jewelh but i heard its partly because of the thing that bush passed and also because a lot of people in the U.S. are conserving their gas because its so expensive so their choosing not to go out as much and there is less gas being used than before.

but i really don't think the U.S. has seen anything yet...in Great Britain and over in the European places i heard its up to $10 a gallon!

Answer 6

It's all very simple, oil is traded 2 years in advance, and there is only enough supply to fill the demand right now. If something happened to supply there wouldn't be enough, so the speculation is that oil supply might be in danger, so those who need it bid it up, and those who speculate ride this situation and probably make it worse, though speculators actually serve to stabilize oil prices. Volatile oil prices at the end user would be a disaster for some business to which oil products are their main expense.

When Bush dropped the executive ban on drilling, that made the possibility of future shortages in supply less probable, even though congress still needs to get on board for it to happen. If they did that you would see a huge drop in prices, even though any production is months away at the soonest, and full production of all known assets is as much as 5 - 7 years out for the hardest locations like deep sea locations.

Oil contract buyers who know what we don't (because we are lied to by the media) that in some cases oil could be had in as little as 8 months, especially the huge deposits off the coast of Santa Barbara which are leaking crude into the open ocean through natural fissures at the rate of one Exxon Valdise spill every 4 years, where it would take a few months to build a platform, drill, and start pumping oil from a deposit of many billions of barrels. Real environmentalists (not the water melons, who are green on the outside as a cover for their red (communist) on the inside) are angry and begging our government to allow this oil to be tapped so it will stop leaking in to the ocean ... but still no ... why? Politics, because if we did start pumping that people would see the effect and all the lies about this would become obvious and the democrats would be exposed for what they have been doing and saying.

We open up drilling and the prices will be 1/2ed in less than a month, because supply is on the way.

Supply in the US is much more valuable to the world market than supply in nations in the middle east, or controlled by nuts like leaders in Venezuela's Chavez and power hungry scum, like Russia's Putin. Stable supply will probably bring prices down more than 5x the supply in an unstable area.