babylonsister
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Fri Sep-01-06 07:44 AM
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Can anyone tell me why gas prices are suddenly going down? |
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I don't get it. Are the oil companies in cahoots with the car companies that want to sell Hummers, do you think it's because of the mid-term elections, please explain what your best guess is. Thanks.
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Waya
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Fri Sep-01-06 07:45 AM
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1. November is just 2 months away............... |
Ian_rd
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Fri Sep-01-06 07:46 AM
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6. Yep. Oil Corporations benefit enormously from Republican Rule, therefore |
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helping Republicans any way they can is just good business sense.
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hippiechick
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Fri Sep-01-06 07:45 AM
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There was an article posted earlier this week from USAtoday explaining just that.
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OhioChick
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Fri Sep-01-06 07:45 AM
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underpants
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Fri Sep-01-06 07:45 AM
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dogday
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Fri Sep-01-06 07:46 AM
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5. This has been prophesied for a while now |
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November elections will all but guarantee that this Administration will lower gas prices to help the Republican party... I told my husband I read this months ago and yesterday he said, you were right.. The price of gas did come down...
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MazeRat7
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Fri Sep-01-06 07:47 AM
Response to Original message |
7. High inventory levels. |
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People have been using less for the past couple of quarters and gasoline inventory is high. Soooo... the prices are going to drop.
MZr7
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buff2
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Fri Sep-01-06 07:52 AM
Response to Reply #7 |
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It's the November elections. I knew this would happen. The repukes are soooo predictable.
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Toots
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Fri Sep-01-06 08:10 AM
Response to Reply #7 |
21. But but what about Profits? |
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Exxon made over $75,000.00 per minute in Pure Profit last quarter alone. I guess if they get down to only $50,000.00 per minute they may survive.. :crazy: Americans are such dolts...
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RaleighNCDUer
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Fri Sep-01-06 09:45 AM
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MazeRat7
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Fri Sep-01-06 11:29 AM
Response to Reply #7 |
28. You folks are funny... can I have some of that ? |
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Edited on Fri Sep-01-06 11:30 AM by MazeRat7
Apparently some missed the basics of what drives the futures traders which in turn drives consumer fuel prices.
Here is a quick lesson:
Normally, gasoline prices begin to rise in the spring as the industry gears up for the summer vacation season, when millions of motorists hit the open road and the demand for fuel surges. Pump prices generally head higher until Labor Day, and then begin their usual seasonal decline as vacation travel slowly winds down.
Their seasonal decline was less than usual because meteorologists began predicting that this year's hurricane season would be as bad -- if not worse -- than last year's, with the possibility of affecting the refineries on the Gulf Coast once again.
Realization that gasoline prices may have gotten too pumped up is one reason for the earlier-than-usual decline in prices this year. But there are others, which will remain even if Mother Nature should change her mind and shower us with many showers between now and the end of the hurricane season on Dec. 1.
For one thing, there's the ongoing change in the mix of vehicles being purchased these days. Time was you had to pay a premium if you wanted to buy one of those four-wheeled behemoths the industry calls SUVs. That they got poor gas mileage was ignored by most, since, after all, size mattered and, when it came to motor vehicles, bigger was definitely better. Not any more, they cant give them away.
Finally, there's the slowdown in growth now under way. Besides the earlier run up in energy prices, there are the 17 hikes in interest rates engineered by the Federal Reserve, and the ensuing leak in the housing bubble. Less growth means a cutback in output and fewer jobs -- both of which reduce our use of fuel. Basic supply and demand.
While its cute and fun to roll eyes and scoff but perhaps, just perhaps, there is a logical explanation for SOME of what we are seeing in the price reduction. No I am not discounting pressure from the power elite to lower prices BEFORE the elections - I just don't think that is the ONLY reason.
MZr7
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Burma Jones
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Fri Sep-01-06 07:47 AM
Response to Original message |
8. Labor Day is probably the biggest factor |
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the summer driving season is over and gas prices always drop this time of year
Also, speculative bidding up of oil prices in anticipation of an active hurricane season has stopped.
If the car companies want to sell Guzzlers again, gas is going to have to get back well under $2.00
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Ian_rd
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Fri Sep-01-06 07:50 AM
Response to Reply #8 |
12. It makes no sense for them to drop BEFORE Labor Day, because |
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Labor Day in itself means high demand for gas due to all the travel that is about to occur.
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babylonsister
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Fri Sep-01-06 07:53 AM
Response to Reply #12 |
15. That's what I thought; don't summer holiday weekends usually |
Burma Jones
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Fri Sep-01-06 07:58 AM
Response to Reply #12 |
20. They have to drop enough to get people.... |
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to actually go out and drive. After paying inflated prices for gas all summer, a drop in prices will stir up demand.
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zbdent
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Fri Sep-01-06 07:53 AM
Response to Reply #8 |
16. Ian_rd (#12)is right ... historically, Labor Day meant one final surge in |
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gas prices to soak those who want one last gasp out of summer ...
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dogday
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Fri Sep-01-06 07:57 AM
Response to Reply #8 |
19. Actually their pattern has been to raise the cost |
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of gas around the holidays.. More consumption at higher rates = big loads of profits....
I thought they would of waited until after Labor Day... That has been their usual pattern... Can set your watch by it....
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Tesha
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Fri Sep-01-06 07:47 AM
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9. "'Election's coming!" (NT) |
spanone
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Fri Sep-01-06 07:47 AM
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10. Hmmm, didn't BP just have to shut down their Alaskan line? |
babylonsister
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Fri Sep-01-06 07:48 AM
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11. But what's the justification by the oil companies for WHY |
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the price is dropping so quickly? How is this being spun?
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City Lights
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Fri Sep-01-06 07:52 AM
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13. My money is on the mid-term elections. |
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I paid $2.76 yesterday, down from a high of about $3.24. The oil companies are in cahoots with Queen George.
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Philosoraptor
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Fri Sep-01-06 07:54 AM
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17. People are just dying to keep gas prices down. Literally |
ThomWV
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Fri Sep-01-06 07:55 AM
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18. Maybe 100 New Refinery's Just Opened |
ProfessorGAC
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Fri Sep-01-06 08:16 AM
Response to Reply #18 |
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No more than 92 new refineries opened. :evilgrin: The Professor
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applegrove
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Fri Sep-01-06 09:51 AM
Response to Original message |
24. And they'll be lower..just until early November. Hmmmmmmmm? |
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Edited on Fri Sep-01-06 09:52 AM by applegrove
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Homer Wells
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Fri Sep-01-06 09:56 AM
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25. Considering the BP Pipeline in Alaska is shut down |
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you would think the price would be sky-high at this time. The fact that prices are dropping so fast shows that it is a deliberate act by the oil companies to help the Bush Regime out in this election season.
Just watch those prices jump the second week in November.
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mccoyn
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Fri Sep-01-06 10:26 AM
Response to Reply #25 |
27. Or they closed the pipeline now because inventories were high. |
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Or they pumped up inventories before closing the pipeline to cover the gap and they didn't need so much.
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A wise Man
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Fri Sep-01-06 10:14 AM
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The media, this repug congress, this administration and above all THESE OIL COMPANIES, all think we are fools. They say it, we believe it, they give excuses, we believe them, maybe they are right, maybe we are fools. The price of gas and oil had no legitimate reason to raise the prices in the first place. After Katrinna they raised the gas prices using the hurricane for an excuse when the gas prices were raising since 2002 without regulation. Now they're lowering them slightly to appease our pockets and knowone knows why. The answer is, "We are stupid or some of us are".
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