Gasoline could drop 50 cents/gallon by spring

[RamboLiberal]

Source: Reuters

U.S. drivers could enjoy a drop of up to 50 cents per gallon in gasoline prices by this spring as high fuel prices and the threat of a recession force them to conserve, experts said on Wednesday.

U.S. gasoline supplies hit a near-14-year high of 227.5 million barrels last week, helped by falling demand for the fuel, the U.S. Energy Information Administration said on Wednesday.

"Gasoline stocks are continuing to increase and it implies that people are probably cutting down on gasoline consumption -- a result of the weakening economy," said Phil Flynn, an analyst at Alaron Trading in Chicago.

U.S. gasoline demand over the last four weeks only averaged about 1 percent more than the same period last year, the EIA said. Demand growth for the fuel has typically averaged about 1.5 to 2 percent a year and has been one of the major drivers of global oil markets.



Read more: http://www.reuters.com/article/domesticNews/idUSN0628259020080206?feedType=RSS&feedName=domesticNews&rpc=22&sp=true

[Hydra]

1. Betcha anything it goes higher

We have to import most of it, and the dollar gets weaker by the day. Driving may be a luxury come June.

[Hugabear]

2. And have Big Oil give up all those profits?

They may drop a little bit, but I doubt we're going to see a significant drop in prices. With Big Oil experiencing record windfall profits, I find it hard to believe they'd want to loosen up too much.

Fuck Big Oil.

[meow2u3]

3. 2008 is an election year

Big Oil wants all the poor Repunks to get to the polls so they can vote against their economic interests. Then just watch the gas prices spike just after Election Day. :grr:

[Nickster]

4. I'm surprised that gas consumption has gone down, but that's a great sign. I hope that people have

started to buy more fuel efficient vehicles and such. I don't believe that the price of gas will go down that much, but the reduction in consumption might be a very good thing.

[rateyes]

5. Well, the oil companies do have a stake in keeping Republicans

in power.

[RamboLiberal]

8. My thoughts exactly

Surprise, surprise in an election year with a good chance the WH is claimed by the Dems and they increase their majorities in the Congress.

Oil companies and OPEC have a vested interest in keeping Repukes in power.

[youngharry]

15. Oil Companies

Yes, the Oil Companies are in league with the Republicans. Known as "CF"--- Cheney's Friends.

IT IS LONG PAST TIME TO NATIONALIZE THE OIL COMPANIES.

[bullimiami]

6. and i suppose us stupid frogs should be happy the water is only half-boiling.

250 a gallon and were supposed to think its great. think again.

[onehandle]

7. Makes sense. Bush's Presidency was about generating insane profits for Big Oil.

Mission Accomplished. Now that Democrats are about to sweep away everything, return prices to normal so there will be no urgent need for investigations.

Bush and Cheney got away with it.

[surfermaw]

9. It will probably go down lower toward Nov...that will be rep.bait

[DCKit]

10. "U.S. gasoline supplies hit a near-14-year high of 227.5 million barrels..."

Last summer, before an OPEC meeting, the Saudi Oil minister said - and was reported in the MSM - that there was not only no shortage of oil, but that there was a market glut.

It's Enron all over again, on a global scale and while Exxon, et al continue to rake in billions, we're falling for it.

[ixion]

11. I would 'enjoy' a two dollar drop... 50 cents doesn't mean much

IMO... and the timing of the 'drop' is suspicious.

[orleans]

12. ROAD TRIP!!

just kidding.

[htuttle]

13. ...and monkeys might fly out of my butt.

But I wouldn't bank on either one happening.

[KnaveRupe]

14. We should immediately institute a $0.50 additional gasoline tax.

All the revenue from such tax should go toward developing alternate energy technology, with a gasoline rebate for low-income people who are suffering the most.

Demand will continue to drop, and as demand drops, prices will drop.

And as prices drop, we should keep the taxes high enough that gasoline stays at around $3.00 / gallon, since that seems to be the price point at which Americans actually slow their usage.

It's the only way to get us off the oil. Lowering gas prices will just keep us addicted to the gooey black stuff that much longer.

[Tesha]

16. Bingo. (NT)

[trogdor]

19. THIS

[Javaman]

17. Since oil is still pegged to the Dollar and since the dollar is taking a dive...

this comes as no surprise.

The down size to this is of course is that this also creates inflation.

so while the price of gas "may" go down, the price of everything else will go up in relation.

the odd part is, however, since the dollar buys less, and since oil will go down, more than likely, the price of refining the oil into other products is likely to go up.

so as a result any offset that would have been gained by the dollar tanking will be taken up by the price of refining.

so therefore, the price of gas probably won't change much and probably will go up do to the strong yen and the strong euros, thus allowing them to buy more. So then supplies will become lower here.

and that creates demand and the price will go up.

Long story short, this story is bullshit.

[tabasco]

18. Mission accomplished!

The robber barons have us thinking $2.75/gallon is good news.

[karlrschneider]

20. And monkeys could fly out of my ass.

:eyes:

[high density]

21. Hilarious

The last estimate a month ago told us to be ready for $3.50 gas (which at the time was already here in some places.)

[Barrett808]

22. That would be called "demand destruction." n/t

[Vinca]

23. Big oil wants Republicans to win come November.

Gas prices will drop in an attempt to make us think Shrub is actually doing something for the nonwealthy. Sadly, the dimmer among us will believe it.

[Kolesar]

27. In 2004, the refiners were running at "high capacity" until the November election

They wanted to be sure the supply was up and the prices were down to make the motorist/voters happy.

[LiberalFighter]

24. I can't hold out that long. I'm going to have to fill up tomorrow

and then it might last til the price drop.

[LiberalFighter]

25. You all can thank me when the price of gas goes down.

I use about 60% less gas than usual.

[ohio2007]

26. if that happens, congress will jump on a chance to raise a 50 cent/ gal gas TAX

count on an infrastructure gas tax in the future when the oil companies pass it on to us at the pump

[GoddessOfGuinness]

28. ...and increase another $1.50 by summer.

Why don't I trust them? :eyes:

[sutz12]

29. And then it will only be $2.00 higher than when Dubya took office. nt

[pinniped]

30. Wow! Instead of $3.49 9/10 I'll be paying $2.99 9/10.

I'll be sure to change my party affiliation to repigscumbags.

[Doctor_J]

31. I am sure Big Oil would love to have another Repuke in the WH

they'll probably try to keep their prices low until after the election