Gasoline could drop 50 cents/gallon by spring

[malorn]

Gasoline could drop 50 cents/gallon by spring | U.S. | Reuters

Some of you kill me with your forecasts of $5 and $10 /gallon gas. YOu need to go back to school and learn about supply and demand.

I think there is a chance it could drop below $2.00/gallon(I know some of you will laugh and curse me) because of all the speculation in oil prices over the last year and the fact a recession started in the last 6 months. Notice the supply is higher than it has been in 14 years and refineries are running at only 87% of capacity. There is a better chance gas prices will get to $2.00/gallon before they reach $5.00/gallon.

[qbee42]

With the economy slowing down there is little doubt the price will falls some over the short term. How much and for how long is something the economists can debate. Without viable alternative sources of energy, the price will eventually climb, unless the world's economy completely tanks, in which case the cure is worse than the disease.

Tom

[viking31]

Originally Posted by malorn

Gasoline could drop 50 cents/gallon by spring | U.S. | Reuters

Some of you kill me with your forecasts of $5 and $10 /gallon gas. YOu need to go back to school and learn about supply and demand.

I think there is a chance it could drop below $2.00/gallon(I know some of you will laugh and curse me) because of all the speculation in oil prices over the last year and the fact a recession started in the last 6 months. Notice the supply is higher than it has been in 14 years and refineries are running at only 87% of capacity. There is a better chance gas prices will get to $2.00/gallon before they reach $5.00/gallon.

You might be right, but I think even the so called 'experts' would have a better chance predicting if a Roulette ball will land on black or red rather than predicting the price of fuel.

I do understand the laws of supply and demand, but the oil companies would be doing themselves a great disservice to both themselves and their shareholders if they concentrated on efforts to lower the price of fuel (such as building more refineries, etc).

American consumers have eagerly paid $3.00 per gallon for quite some time now with little if any decreased demand. Oil companies should continue to press for higher prices to increase their bottom line (and they have been VERY successful at this for the past few years). It is very clear the average American consumer (or any worldwide consumer for that matter) will do little if any to reduce oil consumption even if the price of fuel increases to far over $100/bbl.

Rick
#4 2006

[SAPrius]

Supply and demand perhaps.
More than likely gas prices might drop because a lot of politicians want to get re-elected!

[malorn]

Originally Posted by viking31

You might be right, but I think even the so called 'experts' would have a better chance predicting if a Roulette ball will land on black or red rather than predicting the price of fuel.

I do understand the laws of supply and demand, but the oil companies would be doing themselves a great disservice to both themselves and their shareholders if they concentrated on efforts to lower the price of fuel (such as building more refineries, etc).

American consumers have eagerly paid $3.00 per gallon for quite some time now with little if any decreased demand. Oil companies should continue to press for higher prices to increase their bottom line (and they have been VERY successful at this for the past few years). It is very clear the average American consumer (or any worldwide consumer for that matter) will do little if any to reduce oil consumption even if the price of fuel increases to far over $100/bbl.

Rick
#4 2006

Now is the time. A solid energy bill with serious tax incentives for green building and tax incentives for alternative energy development in transportation could lower energy demand in the long-run and in the short-run burst the current speculative bubble raising energy prices.

[Stev0]

Gas could drop 50 cents, GM could make a car worth buying, but I wouldn't bet any money on either of those happening any time soon.

[malorn]

Originally Posted by Stev0

Gas could drop 50 cents, GM could make a car worth buying, but I wouldn't bet any money on either of those happening any time soon.

Well, GM is already making several cars and trucks worth buying, and barring unforeseen events, gas will be $2.50 by the end of April.

[darelldd]

Originally Posted by malorn

I think there is a chance it could drop below $2.00/gallon(I know some of you will laugh and curse me)

I laugh and curse at you already, but not about this. If this truly happens, we're all screwed. But if it does happen, it sure as hell can't be for long. Remember that supply and demand that you're so thrilled about? Doesn't work when there is no supply. We're getting a large percentage of our oil from tar sands now!? Do you know what it takes to support that as an economical solution to the energy problem? Not cheap gas, that's for certain.

[mojo]

Its to the Republicans advantage ,to have cheap gas for months before the November election.
Oil market can be manipulated .Bush bribed the Saudis recently with a major arms deal.(Perhaps the Saudis cant pump much more ,but they can influence OPEC and manipulate the futures market)
Mojo predicts $60-70 barrel oil Gas $2.25 by labor day.
Heres a less likely prediction.After the election ,Israel bombs Iran.
Oil $100 barrel overnight.

[malorn]

Originally Posted by darelldd

I laugh and curse at you already, but not about this. If this truly happens, we're all screwed. But if it does happen, it sure as hell can't be for long. Remember that supply and demand that you're so thrilled about? Doesn't work when there is no supply. We're getting a large percentage of our oil from tar sands now!? Do you know what it takes to support that as an economical solution to the energy problem? Not cheap gas, that's for certain.

How about cheaper energy and a sound energy policy? Now wouldn't that be nice. I do agree with you it won't be for that long, too many reasons to jack the price up again. I have read peak oil and continue to read that sort of thing on here and other places and I think long before peak oil is truly reached, the US will not really care what the price of oil is.

The more I read and watch, there seems to be some congruency between the peak oil proponents and the AGW alarmists.