As the price for a barrel of crude falls below 90 bux, gasoline breaks below $3.00 a gallon in Omaha, Nebraska for the first time in nearly a year.
Do you think gasoline will go lower? Crude continues to fall in price, gas should follow.
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Comments: 32
It's very hard to predict! Gasoline has not dropped down to $3.60 a gallon in Boise, ID as yet so congratulations on your, not cheap, but a little bit more reasonable fuel prices! I just made an 800 mile motorcycle trip and paid over $4.00 a gallon on that trip.
The whole idea was to get it up there high enough that a drop to $3.50 would be thought of as "low" by the public.
You've read those things but do you really believe them? Demand was down when the price was going up and production was at an all time high. We all know that the drilling, which I did strongly support, won't do anything for us for ten years. And the claim is that the bill passed still was so restrictive that it will be practically useless. On that I can't really comment because I certainly don't have the knowledge.
We need other energy now, or yesterday if possible! Being dependent on the Saudis for something so vital to our economy, military and society in general, puts us in a very vulnerable position. We need to develop the oil at home we possess, we need to quit exporting 1.6 billion barrels of oil, and we need to go after alternatives with a vengeance!
BTW, I also supported drilling in the ANWR as it won't take nearly as long. But to drill for more oil thinking it will cure our problems, including the price of fuel, is foolhardy. At best, it will postpone some of them. We need to aggressively pursue alternative energies and sources of power.
One thing I would like to know, just out of curiosity, is just how much oil we have underground here in the US. The stories vary wildly as do those concerning the off shore drilling and the ANWR. If anyone knows, it is the oil companies and they are certainly not telling!
We haven't seen gas very much below $3.50 here in Tampa, but I guess it's okay. If the world slows down in producing stuff to ship to America for the global consumers to purchase stuff, then maybe the demand for oil will be less.
Also noteworthy, Iran says oil should never fall below $100 a barrel. It costs too much to produce.
The only reason Saudi Arabia is ever included in the topic, is because they lead OPEC, and OPEC is able to manipulate the prices in ways very few individual countries could hope to acheive.
It is also a demonstrable myth it would take ten years to get oil to market from ANWR or any other domestic source. It is simply a lie, or plain ignorance to believe such a thing.
Predicting the price of gas, also isn't that difficult. Thousands of trained monkeys on Wall Street do it every day. In fact, they even have the power to CONTROL the price of oil through various instruments, including the futures market.
Both entities, Saudi Arabia and the US stock market, could plunge, or rise the price of oil, and in the instance of the stock market alone, most any other commodity as well, rather easily.
Chris, it's only a matter of time, in my opinion. It is falling across the country.
Sam C., Oct 6, 2008, 8:07pm EDT
How is it Obama problem??? wow people just fasinactes me everyday....lol...
Sam, I'd be surprised if a buck fifty is met. I'd also be very surprised if Obama could do as you suggest. He doesn't have enough leverage to flex that kind of power, as president.
Thanks for the input Brian.
I certainly hope that your 1.50 is not realized as that would indicate a horrible depression, probably world wide! I doubt we'll ever see $2.00 again but then I never thought I'd see $4.00 per gallon, either!
You question is quite valid. However, is it not crude that is being brought into the country and refined at the present time. Or does the seller refine and prepare it for market?
\\\\The expectation of more local production will lower prices. ////
You are quite correct, if the price drops from the yet to be performed drilling, it will be from that expectation, not from the drilling.
I'm one who has favored the drilling ever since it was mentioned, but I'm not of the belief that it is going to lower my fuel costs. It simply needed to be done and if possible, relieve ourselves of that much off shore purchases. Also, if an alternative for petroleum is introduced tomorrow, we will still need petroleum for a wide variety of non fuel uses. So the drilling will certainly not got to waste. If I am wrong and it lowers my fuel costs, that's great! But I am not naive enough to anticipate that! Hope I'm wrong!
Just want to cover one topic, I've read repeatedly in a wide variety of sources, that over 70% of our domestic used fuel is purchased from the Mideast. Your 25% sounds much more desirable and I hope you are correct and that I am wrong!
On the same note, how much of our oil is purchased from Canada? Do you have that figure?
SOURCE
How high do you think the price of gas will go up right after the election??
I don't think our election has much to do with it. It depends on a great many other factors, much more important than a man with power for a mere four years, perhaps eight if he's lucky.
Cindy, why do you think that ???
All summer, a gallon of gas has been bouncing between four and five dollars.
But, now that the election is getting closer, all of a sudden it starts dropping down to almost three bucks..........
Something seems a bit "fishy" about that, methinks......
Okay, let's say we "follow the money." Just who do you think is doing this kind of manipulation, and for which candidate are they doing it?? One of the candidates MUST be the lucky recipient if the price of gasoline is seen as a ploy to steal the election.
In the past, that has always been their handy-dandy excuse to raise the price of gas......not lower it.
So, if not the election, then what else can we attribute tp their sudden generosity??
It seems to be localized to the large cities however, and the countryside apparently still has gasoline.
I don't think 50% are still down however, that's what the number was right after Ike paid a visit. I believe they are only about 15% down now.
Lastly, you MUST consider supply-- and demand. Globally the demand for oil/gasoline has fallen dramatically. The price of crude is currently under $87.00. That's quite a fall from the peak of around $140.00.
The market place works-- and would work much more efficiently if there were no manipulation such as OPEC employs.
It's easy to see a booger man in every shadow. The truth is usually far more simple, and boring.
Appreciate the link! It is interesting and appears to be government figures so it should be solid information. I've not yet done the math to determine the percentages but expect that you did so correctly.
I've crunched a few n umbers and found some surprises. This is based only on the first month listed but Venezuela comes in at 12.7% of our imports of crude. As I thought, Canada was highest at 21% and Saudi Arabia at 17.8%. I'm also surprised a little at the 2.2% imported from Russia. I believe, looking at the chart, that these percentages would hold pretty close for other periods of time as well.
Don't believe that conflicts what you've said but found it interesting. It would appear that our imports are 34% from the North American continent and I'm not at all sure just how much we produce in the USA. If you add in the South American imports it comes to well over 50%. Just what percentage is the amount we are exporting, do you know? I've seen a gallon figure but no indication as to the time line.
BTW your trained monkeys on Wall Street don't seem to be predicting much of anything too well lately! What a mess. I don't have a great answer or solution to the problem and it would appear that the "experts" in Washington don't know any more than I.
If you see an error in my number crunching please let me know.