Oil Prices Plunge!

[roadwarrior]

September crude contracts closed down $5.03 at $114.99 (2:00 CDT).

The markets will continue to be very volatile, but without war in

the Middle East, prices should continue to drop. I expect some stability

in the $60 - $80 range. This would price retail gasoline in a range of

$1.75 -$2.25 or either side of $2.00.

8-)

[S I G M A]

$2.00 gas? perhaps a little too optimistic...

[fishfordollars]

Sad part is everyone now thinks 3.25 a gallon is cheap. They are conditioning us for the future.

[Hookemdown.]

They are conditioning us for the future.

That sounds like a conspiracy plot from the 70's

[Still a Bigbuckifan]

I hope and pray for $2.00 gas but i don't see it Happening. Last I checked there still was a war in the Middle East and it doesn't seem like that's going to change any time soon. (Now matter what happens in November) I really hope your right though.

[Hookemdown.]

Make that two wars in the middle east.

[Newman12Fan]

Well gas went up over 20 cents here last night.  It always does that when I drive home from work and say "I need to get gas in the morning"

[Raul]

You 've been paying $3+ gas, why would the oil companies reduce their prices if you have already been paying more ?

Once a time American influence in the oil market was huge, nowdays other countries like China, India and the European Union outweight the American influence, you are not willing to pay somebody else is willing to do it.

Oil companies don 't care about you, all they care is about profit, the only flag they adhere to is money regardless of what color it is and where it comes from.

[zellamander]

That would be amazing. But does anybody actually think that will happen? I mean, I guess there is a possibility that it could happen until November... but I bet it doesn't stay like that afterwards

[zellamander]

Where are you that gas went up again? In Pittsburg, KS gas just went down again to 3.69 a gallon. That's .30 cents down in like 2 weeks.

[-HAWK-]

Make that two wars in the middle east.

Two wars, one standoff with Iran, and turmoil in Israel. When is the Middle East ever really been at Peace? Not in the last 2000 years at least.

[fishfordollars]

Gas is at 3.54 a gallon here today. A three cent drop from Wednesday.

[Still a Bigbuckifan]

Two wars, one standoff with Iran, and turmoil in Israel. When is the Middle East ever really been at Peace? Not in the last 2000 years at least.

when will the middle east be at peace Not for 2000 more years

[fishfordollars]

Two wars, one standoff with Iran, and turmoil in Israel. When is the Middle East ever really been at Peace? Not in the last 2000 years at least.

when will the middle east be at peace Not for 2000 more years

They have never had peace. Never will either.

[Still a Bigbuckifan]

Quote:

Two wars, one standoff with Iran, and turmoil in Israel. When is the Middle East ever really been at Peace? Not in the last 2000 years at least.

when will the middle east be at peace Not for 2000 more years

They have never had peace. Never will either.

Not till the clouds part and the trumpet sounds.

[burleytog]

Oil companies don 't care about you, all they care is about profit, the only flag they adhere to is money regardless of what color it is and where it comes from.

You say that like it is a bad thing.

[roadwarrior]

Two wars, one standoff with Iran, and turmoil in Israel. When is the Middle East ever really been at Peace? Not in the last 2000 years at least.

when will the middle east be at peace Not for 2000 more years

They have never had peace. Never will either.

Wrong...

The same thing was said about the Japanese during WWII.

The Germans have always been associated with war and

aggression. A few hundred years ago the same was said

about the Spanish and for a thousand years the Vikings

were nothing but ruthless savages.

Democracy, independence and freedom can carry the day.

American is a beacon of light for all of humanity. Iraq is a

symbol of hope for the entire world. I believe that peace in

the Middle East is achievable.

"A journey of a thousand miles starts with the first step."

Back on topic,

Oil is nothing but a commodity. Prices will fluctuate, but there is nothing

intricitly "valuable" about oil. There is a glut of oil in tansit and the

pricing is contrived. The commodity is not scarce, delivery to end

users is the problem.

In a broader context, the universe is unimaginably large. The only thing greater

than the volume of mass is the amount of energy in the system. If we mere mortals

can find a way to harness a small portion of that energy, life becomes simple. There is

not now, and will never be a shortage of "energy".

8-)

[Micro]

You 've been paying $3+ gas, why would the oil companies reduce their prices if you have already been paying more ?

Because failing to reduce prices of gasoline when crude prices fall would increase the company's profit margin.  That margin is already deemed too big (it's actually reasonable) and an increase would be a public relation's nightmare, not to mention more ammo for a windfall-profit tax.

Once a time American influence in the oil market was huge, nowdays other countries like China, India and the European Union outweight the American influence, you are not willing to pay somebody else is willing to do it.

Indians and Chinese can afford gasoline when their governments subsidize a principal portion of the cost.  Now that prices have gone through the roof, the Chinese and Indian governments can scarcely afford the subsidies and the subsidies have been reduced or lifted causing the average Chinese and Indian to pay a heck of a lot more than they used to.  The average Chinese or Indian can't afford it.  Therefore, there is a drop in demand, a reduction in crude oil prices, and a drop in gasoline prices. (I predicted this in a post a month or so ago.)  Now that the prices are falling, we will see a resumption of some of the subsidies and an increase in demand as a few more Chinese and Indians begin to buy gas again.  

Gas will never again be $2.00 per gallon.  I suspect oil may stabilize at around $85.  I think gas will drop to about $2.75.  I think that's a low as it will ever go again.  

[tyrius.]

You 've been paying $3+ gas, why would the oil companies reduce their prices if you have already been paying more ?

Oil companies do not set the price. The price of oil is set by the market. Then the price of unleaded gasoline is also set on the NYMEX. So, competition between the gas stations typically results in the retail price of gas at 50-60 cents per gallon higher than the wholesale price (which is currently at like 2.90).  Oh and this typically applies to the very high cost state of IL and even higher in the 'burbs.  Other states and locations vary significantly.

[=Matt 5.0=]

You 've been paying $3+ gas, why would the oil companies reduce their prices if you have already been paying more ?

We've been paying $4+

And when I posted the same thing Raul, I was called an idiot.... :

[fish-fighting-illini]

 RW

No offense but you've got to quit posting during cocktail hour  

jk of course

[FishTank]

I don't know about the rest of the country but here in Indy, gas went up today from $3.62 to $3.89.  It makes no sense to me at all.  

I do remember reading that Rex Teillson of Exxon said that gas will stay high because it now cost 2/3 of the price to refine and deliver instead of 1/3 of it's cost as of 10 years ago.

When I read this I thought, he's right.  The oil companies will always be stealling from my pocket.

[Daniel My Brother]

I don't know about the rest of the country but here in Indy, gas went up today from $3.62 to $3.89. It makes no sense to me at all.

It's really very simple. When the price of oil goes up, the price of gas rises. But when the price of oil falls, the price of gas rises.

[fish-fighting-illini]

It's really very simple. When the price of oil goes up, the price of gas rises. But when the price of oil falls, the price of gas rises.

           Unfortunately I think Daniel has it right on the nose

[bassdocktor]

I've been seeing the same thing. Gas seems higer around most of Chicago now that oil has been around $118 than when it was in the 120's a week or so ago. Kinda funny how oil has been going down but gas has been going up.