Why are gas prices falling?

Question

why are the gas prices falling due to election or what cause its 3.294 where i live is it going to keep falling when will it arise

Answer 1

BECAUSE THE MIDDLE EAST IS WORRIED THAT WE ARE GOING TO DRILL MORE OIL IN ALASKA.

Answer 2

because the people that made money buying oil futures now believe that it is going down to $100 a barrel or less and are now shorting it (profiting from the decline in oil prices) the consensus on wall street is that oil is in a bear market for the next few months.  

Answer 3

This is an economic phenomenon called supply and demand.   When people start driving less because of the price of gas, it doesn't take long for a shortage to turn into a surplus.  Instead of driving 2% more this summer, we are driving 2% less.  So instead of having 0% reserve between consumption and capacity, we have 4% reserve.  Now if we could only get most people to get out of their big SUV's and pickups, the price could drop significantly.  

Answer 4

The reason is twofold: First, Americans drove an estimated 30 billion less miles in the first eight months of the year, decreasing demand worldwide because Americans consume 25% of the world's oil. Second, the July high roughly coincides with seasonal highs regardless: Oil usually drops sometime around the end of July, beginning of August anyway. The reason the oil didn't drop sooner based on reduction in demand is because of fuel subsidies worldwide, which prevented a normal dampening of demand.

As an aside: Those of you who think drilling US domestic offshore/protected oil reduces prices, think again. American offshore and protected reserves represent less than 8 months of world consumption, will take decades to extract and therefore over time will have less than a fraction of a cent impact on pump prices. We cannot drill our way to lower prices.

Answer 5

Crude-oil prices are dropping sharply. Gasoline prices are falling as well -- but not nearly as much.

So what's going on here?

Crude oil peaked at $147.27 a barrel July 11 and sold Tuesday for $119.17, a drop of 19.1 percent. Gasoline peaked July 17 at $4.11 a gallon, but Tuesday's national average was $3.87 a gallon, a decrease of just 5.8 percent.

The Department of Energy's latest forecast figures a 2008 average gasoline price of $3.84 a gallon, more than $1 over 2007 prices. For 2009, the DOE is forecasting that a gallon of regular gasoline "will remain over $4 a gallon until the fourth quarter of 2009," averaging $4.06 per gallon for the year.

Petroleum Industry forecast as averaging $127 a barrel for 2008 and $133 a barrel for 2009!!!

Answer 6

The demand for oil is falling  as the summer driving season ends and  economic growth   slowing around the world due to the high oil prices. The absents of threatening statements about  Iran recently also has some effect because possibility  of military action raise fears of supply disruptions in the middle east, and this "risk premium" is part of the high price of oil.

Answer 7

people drive less,

there is real perspective of more drilling both in US and other countries,

summer is not too hot so gas use for AC is lower.

Answer 8

The price of a barrel of oil has fallen by around $35 dollars in the last month and a half. That's why.

Answer 9

That doesn't really answer his question Kratos. Why exactly has the price of oil per barrel went down? I'm intrested in knowing as well.