Why has the price of oil/gas dropped so much recently?

[The One]

What has changed so drastically over the past couple of months that would explain the dramatic drop in the price of a barrel of oil and a gallon of gas? The dollar has gained strength but not to the extent that it would explain the dramatic price drop. Demand decreases (or so we're told) after the "summer driving months" (always thought that explanation was pretty much a crock of shit), but I still don't see how that explains a decrease of at least 25% in the price of a gallon of gas. Thoughts???

[ItsTime]

Speculators are dropping oil.

[micahnelson]

What explains the sudden jump?

Investors are going wonky searching for the next bubble. They realized that the demand for oil isn't going to be that great if we are in a global depression- killing the speculation.

Also, deflation.

[sailor]

Right now oil is probably undervalued.

[sidster]

the target for oil price is around $50/barrel. wait for it.

[noxagol]

Dollar has strengthened.

[sailor]

No factors can explain such a massive drop. End of the speculation bubble, dollar "strenght", less demand... It went from a high of $147 to $76 in 3 months. That is too much. I think somewhere along the way it became panic selling.

[danberkeley]

People are getting margin calls and have had to sell off assets.

[Grimnir Wotansvolk]

Dollar has strengthened.
hahahhahahahahahahahahahaha

what?

[constituent]

hahahhahahahahahahahahahaha

what?

\/ that \/


People are getting margin calls and have had to sell off assets.

[sailor]

hahahhahahahahahahahahahaha

what?

You got 1.45 dollars for 1 Euro weeks ago. Now you get 1.33 dollars for 1 euro. So in relative terms dollar has strenghtened. Probably because euro has weakened more than dollar in the time frame.

[H Roark]

I still think its demand, its not only that people drive less due to the time of year but you can say that people just have less money to purchase gas with.

[Dark_Horse_Rider]

Oil Bubble ?

[UnReconstructed]

I still think its demand, its not only that people drive less due to the time of year but you can say that people just have less money to purchase gas with.

This is it.

[RickyJ]

Why has the price of oil/gas dropped so much recently?

They just realized they have a shitload of it and it has an expiration date. :eek:

[V-rod]

Sad thing is, sudden drop of oil prices can also signify that we are going into a heavy recession.

[RickyJ]

Also could be an election ploy for the sheeple. Good times at the pump make many of them happy.

[devil21]

Oil has dropped but gas hasn't. Funny how a barrel costs half of what it did a couple months ago but a gallon of gas only dropped 1/8.

[constituent]

Oil has dropped but gas hasn't. Funny how a barrel costs half of what it did a couple months ago but a gallon of gas only dropped 1/8.

for great eco-justice.

[The One]

Oil has dropped but gas hasn't. Funny how a barrel costs half of what it did a couple months ago but a gallon of gas only dropped 1/8.


The price of gas is way down where I live. Gas in my area is down to $2.71 per gallon. At its highest point, it was just under $4.00.

[Brassmouth]

People are spending less, meaning demand for other petroleum products has declined. Because of this, the price of oil has also declined, and so too have gas prices.

[dannno]

People are spending less, meaning demand for other petroleum products has declined. Because of this, the price of oil has also declined, and so too have gas prices.

Ya, a lot of our gas goes into transporting "things", not just vacations and trips to the store.

[LibertyEagle]

Oil has dropped but gas hasn't. Funny how a barrel costs half of what it did a couple months ago but a gallon of gas only dropped 1/8.

Not funny at all. It'll drop when they use up more of what they already had in the pipeline.

[nate895]

The reason why gas hasn't dropped that much is because the refineries were shut down on the gulf because of hurricanes. It never affected West Coast supply that much, so our prices have dropped about 3/8.

[Brassmouth]

Ya, a lot of our gas goes into transporting "things", not just vacations and trips to the store.

Did you even understand what I said? Oil makes a lot more than gasoline, fyi. The demand for those products has declined, and the price of oil has gone down accordingly. A great side-effect is that lower oil = lower gas.

Straight out of Peter Schiff's mouth....

[devil21]

The price of gas is way down where I live. Gas in my area is down to $2.71 per gallon. At its highest point, it was just under $4.00.

Where the hell do you live? Still $3.40-3.50 in my area (NC).

[satchelmcqueen]

Oil has dropped but gas hasn't. Funny how a barrel costs half of what it did a couple months ago but a gallon of gas only dropped 1/8.

thats what i have been saying! screw em!:mad:

[satchelmcqueen]

also has dropped from 3.49 to 3.01 in 2 days here in Ga.

[Brassmouth]

$2.76 in Jersey.

[The One]

Where the hell do you live? Still $3.40-3.50 in my area (NC).

Texas panhandle.

[devil21]

Texas panhandle.

Oh. Well, they probably just carry the gas from the refineries across the street to your gas stations.

[James Madison]

Investors are selling their oil supplies due to uncertainty in the US Dollar, which oil is denominated in. They're cashing in their dollars received from oil sells by purchasing hard assets like gold or buying a house in Dubai in preparation for the coming economic crisis.

[bill50]

Didn't Lindsay William predict that it would hit $2 a gallon?

[James Madison]

Didn't Lindsay William predict that it would hit $2 a gallon?

I think it was $50 a barrel. You're referring to the guy on Alex Jones a few months ago, correct?

[sidster]

Didn't Lindsay William predict that it would hit $2 a gallon?

he wasn't predicting.

[Uncle Emanuel Watkins]

What has changed so drastically over the past couple of months that would explain the dramatic drop in the price of a barrel of oil and a gallon of gas? The dollar has gained strength but not to the extent that it would explain the dramatic price drop. Demand decreases (or so we're told) after the "summer driving months" (always thought that explanation was pretty much a crock of shit), but I still don't see how that explains a decrease of at least 25% in the price of a gallon of gas. Thoughts???

A lot of money made from oil has been invested in Financial stocks. Raising the price of oil even more will work to lower the price of the stocks even further. When the amount of value lost from investing in Financial stocks exceeds the amount made from selling oil, then a drop in the price of oil should be expected.

[Mach]

Here we go, people getting all happy and excited because of the drop in gas prices, but it should have never been anywhere near it's highs anyway, they're controlling you just like clockwork.

Perception is key.

[The One]

Here we go, people getting all happy and excited because of the drop in gas prices, but it should have never been anywhere near it's highs anyway, they're controlling you just like clockwork.

Perception is key.

Who's all happy and excited?

[devil21]

Its still over $3/gal here. 3.19 at my nearest stations.

[Standing Like A Rock]

$2.89 a gallon here.

[youngbuck]

$3.09 right down the street from me.

[Ninja Homer]

$2.50 here.
http://twincitiesgasprices.com/

Here's a cool map for you:
http://www.gasbuddy.com/gb_gastemperaturemap.aspx

[Spirit of '76]

I live in WV and work in Ohio. On the WV side of the river it's about $3.15. On the Ohio side it's $3.00.

Pisses me off...

[constituent]

2.69

[s35wf]

in orlando west side of town by disney yesterday 3.05, here on east end 3.27

usually west end is more expensive then east end, i dont get it :confused:

[georgiaboy]

I agree with the points regarding over-speculation, margin calls, etc.

In addition, also repeating an earlier post, I always seem to notice that prices at the pump go down near election day. I've always thought that was done to favor incumbents.