Gas Headed Back To $2.00 Per Gallon?

Discussion in 'Economy' started by Ramapo, Aug 30, 2006.

  1. Ramapo
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    Ramapo Rookie

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    http://money.cnn.com/2006/08/30/news/economy/gas_prices/index.htm?cnn=yes

    Gas may be headed back near $2
    Analyst sees prices 'closer to $2 than $3' by Thanksgiving, newspaper reports.
    August 30 2006: 7:20 AM EDT
    NEW YORK (CNNMoney) -- The recent drop in prices at the pump could pick up steam, driving gasoline sharply lower in coming months, USA Today reported Wednesday.

    'We'll be closer to $2 than $3 come Thanksgiving,' Fred Rozell, a gas analyst at at the Oil Price Information Service, told the newspaper.

    The average cost of a gallon of gas peaked this year at $3.036 on Aug. 10, the newspaper said, citing surveys by the motorist organization AAA and Rozell's OPIS.

    AAA reported a nationwide average of $2.84 Tuesday, the lowest since April 20, according to the article.

    Online gasoline price survey site Gasbuddy.com shows Wednesday's national average at $2.80.

    Several factors are behind the recent declines: the end of the summer driving season, which reduces consumer demand for gasoline as well as, the end of seasonal federal requirements on gas that makes the cost of importing and refining it cheaper, the newspaper reported.

    Overall gas consumption is down for the year, which takes the edge off wholesalers prices, who in turn are trying to get rid of the product.

    Finally, petroleum traders, worried that high prices won't last, are anxious to sell their holdings, the newspaper reported.

    Crude oil, accounting for about half the price of gasoline, closed below $70 a barrel Tuesday for the first time since May 4.







    :bsflag:



    http://money.cnn.com/2006/08/30/news/economy/gas_prices/index.htm?cnn=yes
     
  2. Bonnie
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    Bonnie Senior Member

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    I hope so, I know by me the prices have dropped to 2.65 per gallon for regular.
     
  3. Ramapo
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    We are down to around that price also.
     
  4. Nienna
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    Nienna Senior Member

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    We're down there, too. I read a financial statement last week that predicted gas down to $40 a barrel in the next 10 years, due to falling demand & new technology. Don't know how accurate that was.
     
  5. Ramapo
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    I hope so. Oil is the root of all our problems.
     
  6. Mr. P
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    Mr. P Senior Member

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    Now are you guys wondering what I am?

    After the BP pipeline shutdown that provided 8% of the supply, how can prices drop so much, so fast?

    Makes me rethink the claims of gouging.
     
  7. Ramapo
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    Ramapo Rookie

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    They've been gouging since the 70's and we turn a blind eye towards them.
     
  8. 1549
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    1549 Active Member

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    Does your user name have any relation to the Ramapo Mountains in North Jersey?
     
  9. Mr. P
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    Mr. P Senior Member

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    I don’t have a problem with oil companies making as much as they can “legitimately”,
    legitimate being the key word. If prices are high because we only have x refineries, ok
    If they’re high because of reduced supply, ok.

    But when we lose 8% of the supply and if these things were true, prices would sky rocket, no?
    The price is dropping, IMO this alone gives validity to those that have claimed gouging all along.
     
  10. misterblu
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    misterblu Active Member

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    :read:
     

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