dropping gas prices

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  #1  
Old 10-23-12, 03:41 PM
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dropping gas prices

Went to town today and was amazed at all the different gas prices. Sunday gas prices were in the $3.55-$3.59 range. Today I saw prices from $3.39 all the way down to $3.16.... and some stations across from each other or a block away had a 10-15 cent per gallon price difference.

The cynic in me thinks it's just a ploy to get some of the incumbents re elected. The local news this evening said gas prices were going down because of supply and demand but also stated that gas prices were dropping the most in the swing states.

Hope I'm not getting too political - I'd hate to have my self banned
 
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  #2  
Old 10-23-12, 04:22 PM
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Gasoline prices in my area are hovering around $4 a gallon or more.
 
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Old 10-23-12, 04:28 PM
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Diesel hasn't budged from the $4 mark in ages. You will find that the prices will stay high until after the election, then if the right one wins, they will begin to drop dramatically showing support for relaxed drilling and oil transport regulations, like the pipeline.
 
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Old 10-23-12, 04:31 PM
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I fully imagined gas prices to come down by election time, and it seems like its happening. Gas here has been in the 3.60's and I was on a trip this past weekend and saw some for 3.33. Its a welcome surprise no matter what the cause. LOL
 
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Old 10-23-12, 11:15 PM
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No marksr I don't think you are being too political and it could be you are right. On the other hand you could also be wrong and right at the same time. Undoubtedly there are probably some service station owners who want to see the president re-elected and are adjusting their prices accordingly and in doing so they think this will help. On the other hand though it is also just as likely because of the change in seasons and a different blend of gasoline. Also a service station owner couldn't afford to keep his prices too low for very long maybe a day at most otherwise he would go out of business. My dad used to own a gas station so I kind of understand some of the politics behind gasoline. Most of the real politics though goes on with the oil companies and not with the service station owners as they just can't afford it.
 
  #6  
Old 10-24-12, 03:00 AM
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Gas Prices are dropping here in Canada as well. It is a result of the refineries reaching their maximum summer quota and are now pumping out "winter gas"

Since the US imports most of their gas from Canada that could be the reason your prices are dropping.

Nothing to do with your presidential election
 
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Old 10-24-12, 05:24 PM
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My thoughts exactly:
I fully agree with you too.

Nothing to do with your presidential election
Greed by oil companies and investor speculators have a lot more to do with oil prices then you think. Supply and demand plays a roll. As does blends between summer blends and winter blends.

Has zero to do with whom ever is in office. Nor being near an election date!!!!!!!!!!

Remember when the prior president (Bush) released some of Americas oil reserves? Why did he do so? To help lower our prices at the pump because he had no control over oil prices nor gasoline prices in any state at the pumps.

When something doesn't go as we like, what do some do. Blame the president??? The administration or party that happens to be in office??? YIKES!!!

Much of my lawn grass died this year dispite all I usually do to keep it green. Must be the presidents fault.... Lack of rain fall here too. Draught. Presidents fault too???? An election ploy? Good Grief!!!!....
 
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Old 10-24-12, 05:55 PM
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Boy...haven't seen any dropping at all here. Last week $3.69...yesterday $3.75. Dunno what it is right now...I only put fuel in the car every 10 days or so. Unlike wifey who has to fill up every Monday to get to her classes.
 
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Old 10-24-12, 06:33 PM
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Has zero to do with whom ever is in office. Nor being near an election date!!!!!!!!!!
Quite naive, IMO. No one is blaming the president for high prices. Of course he doesn't have anything to do with such regulation. What he does have is the power to implement the voiding of the Canadian Pipeline, and stopping drilling in places where we should be drilling and producing our own oil. It's simple economics. If you don't produce your own commodities, you have to buy them elsewhere. The speculators and greedy oil companies are having a field day with that.
 
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Old 10-24-12, 09:19 PM
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Since the US imports most of their gas from Canada that could be the reason your prices are dropping.
Where did you get THAT little tidbit of misinformation?


Chandler, the US is close to being the world's largest oil producing nation. Output has been going up every single year for the last four years. Kind of throws a wrench into your assertion that the Obama administration is holding back our production.

U.S. may soon become world's top oil producer | National & World News | Seattle News, Weather, Sports, Breaking News | KOMO News

Something else, that oil pipeline from Canada to the gulf of Mexico is for transport to a deep water port. NONE of the crude was destined to be refined in the US.
 
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Old 10-24-12, 09:52 PM
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What pipeline are you guys talking about? Keystone XL?
 
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Old 10-25-12, 12:10 AM
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Yep, that's the pipeline.
 
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Old 10-25-12, 02:59 AM
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My understanding, bolstered by Brant's article, was the pipeline was to provide transport to refineries, not deep water ports for export, although it would make sense to export it at a higher price to make more money. At present the pipeline, basically doesn't exist in it's fullest capacity and is bottlenecked. Politically? Yeah it takes a presidential "OK" to get it going. Now, it is stalemated.
 
  #14  
Old 10-25-12, 03:25 AM
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I meant to say oil and not gas, as in natural gas.

Anyway here you go,

Crude Oil and Total Petroleum Imports Top 15 Countries
 
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Old 10-25-12, 04:23 AM
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One logical point I heard regarding that keystone oil pipeline was the underground pipe line section across the mid west and central part of the country. Corn belt area if you will, etc. The fear is should the pipeline break, oil would pollute the under ground aquifer where mid western farmers in the farm belt areas obtain there water. Which is used for cattle ranching, agricultural farming and field crop irrigation.

That makes sense. To me at least. One natural disaster like an earth quake, in which that area an earthquake can happen, did happen, oil leakage will pollute the under ground water supply. Then what? Another gulf of Mexico like oil spill except this one would be under ground and out of sight? YIKES.......

As for the reason why the entire pipe line project was shut down all together while a solution is obtained is beyond me. Why not just build it starting at both ends. Canada south ward and Texas north ward. By the time the mid section of the country is ready where both ends can be jointed a solution should be figured out.

Got a better potential solution? Post it.
 
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Old 10-25-12, 10:10 AM
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Since the US imports most of their gas from Canada that could be the reason your prices are dropping.
I think a more correct phrase would be "The majority of petroleum imported to the US is from Canada though the US produces over 2 times that amount domestically."

Basically...the majority of our imported oil is from Canada, followed by Saudi Arabia and Mexico. We still produce more domestically than the top 3 suppliers import to us.
 
  #17  
Old 10-25-12, 05:01 PM
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If the president had control over gas prices, they would always be low.

That pipeline is only going to make prices go up. Preventing that crude from gaining access to international markets is keeping West Texas Intermediate low. Check out the spread between brent.

Building a refinery up there would help keep the price down for use. There are gasoline pipelines all over the country that would get it to market.
 
  #18  
Old 10-25-12, 05:09 PM
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All the refineries are now up and running after accidents and repaired, so the storage tanks are beginning to fill up. The use is down a little with summer being over and people back in school.

After the low profits (per gallon) from the high prices, the stations do not have the money or interest in filling the tanks to guarantee a product to sell. An 8000 gallon load is well over $20,000 and most stations need a few loads to fill all buried tanks with the demand not as high as the summer.

Dick
 
  #19  
Old 10-26-12, 10:16 AM
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I was going to post in complete cynical agreement with the OP because I remember thinking the same thing just before the elections 4 years ago. Whaddya know history repeats itself. But then I looked at the gas price chart at Gasbuddy
Historical Gas Price Charts - GasBuddy.com
(click the 5-year view)
and saw the prices falling over a much longer period in 2008, beginning mid-summer. Must be another explanation than the election--though the cynic in me hates to admit it
 
  #20  
Old 10-26-12, 10:40 AM
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Gas always goes down in the fall, when the refineries switch to a winter blend and the demand for gas goes down and the demands for heating oil have more control over what products the crude is made into.

Politicians have very little effect on the price of gas since the fuel taxes (a major factor) are the same every year and the refineries and major gas companies are under foreign control (BP, Shell, and many others). Instead of North American crude going to China, China may be an exporter in the future as they develop more facilities.

The likelihood of any measurable fuel imports into the U.S. from China is low because their demand for cars and fuel is greater the the U.S. That is why Ford and GM are building plants in China since the Chinese do not have enough car production and do not export cars. I think a Chinese company bought the Volvo car division and a French company bought the heavy truck division.

Dick
 
  #21  
Old 10-26-12, 12:00 PM
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"always"? Not if the history chart is accurate data. There's no seasonal correlation to be seen. I know that's the "conventional wisdom" and maybe it does change a few pennies but the bigger trends completely wash out those small adjustments.
I truly believe that speculation and manipulation have a far greater impact on price at the pump than blend change-over, local storms or even seasonal supply & demand. Witness how every time someone sneezes in the gulf (over "there" or over here) the price shoots up 10% over night but then takes 3 months to slowly drop back down. I don't think the president himself or even the Dem. party is behind it but there are really big power brokers that could have an agenda to make it look like the current administration's policies are...finally...working to lower fuel prices, and they do have the power to pull those strings.

[/cynic]

LOL
 
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Old 10-26-12, 02:11 PM
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Personally, I believe that speculation and manipulation is the root cause. Worse yet, anything on the stock exchange is subjected to spectulators and manipulation by any brokers, dealers and investors concerned only with making money regardless which the way the market goes. Fact is, money is made by speculators and brokers on both the ups side and down side of the market.

Bigger concern I have is why is any energy type or anything of vidal national interest even on the stock market. Where any of the above can and does take place????? Wall street now wants social security, retirement plans and healthcare on the open markets. Imagine what would happen. Any down turn for any reason could result in reduced benefits.

BTW: Social Security isn't an entitlement. It's an investment like any annuity. Pay into it and withdraw the benefits years later when you retire. That's why you have to be 65 and 66 (Baby Boomer) to begin collecting. Or suffer some major type of accident, health condition etc that results in a permanent type of disability or some other specific conditions.

As it pertains to an employees retirement plan (RSP) you can borrow money from an employer RSP under certain conditions but you have to pay it all back. It's intended to be used for retirement and no other reason. An assurance money will be there for you when you retire and add to social security.


If either of the above was on the wall street stock markets, both would be subjected to speculation and manipulation by agents, brokers, speculators and any other powers that be.... Certainly not a situation or condition I would want for myself nor would I want it for you nor imposed upon you and against your will. Not in any of our best interests IMO.

Let's hope neither happens to either of the above. Like it effects gasoline and or the results from any camel (over there) sneezes....

 
  #23  
Old 10-27-12, 04:42 AM
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Social security used to be an investment like an annuity. Since the beltway bandits started spending it and leaving T-bill IOUs it's become one big ponzi scheme.
 
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Old 10-28-12, 04:52 PM
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Personally, I believe that speculation and manipulation is the root cause. Worse yet, anything on the stock exchange is subjected to spectulators and manipulation by any brokers, dealers and investors concerned only with making money regardless which the way the market goes. Fact is, money is made by speculators and brokers on both the ups side and down side of the market.

Bigger concern I have is why is any energy type or anything of vidal national interest even on the stock market. Where any of the above can and does take place????? Wall street now wants social security, retirement plans and healthcare on the open markets. Imagine what would happen. Any down turn for any reason could result in reduced benefits.
It's all supply and demand. If demand for oil was low, speculators would not be able to sell their contracts at high prices. Oil has been trading on the open market since the 1980's. If speculators could control the price to their advantage, the price of oil would have been sky high since the 1980's. Instead, the price of oil went down to record lows.
 
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Old 10-29-12, 05:12 AM
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I still can get over the wide range of prices. We went to visit my wife's oldest son yesterday [100 mile round trip] and saw prices as high $3.39 and as low as $3.01 with some of the highs/lows only a mile or two apart. The last 2 times I filled my jeep it was less than $50 per tank full
 
  #26  
Old 10-29-12, 05:55 AM
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How close to the highway were you when you filled up? I've seen those stations right off the exits of the interstates be 50 cents above the gas stations 1/2 mile down the road.

There is one gas station I pass going to work that doesn't have any competition for miles. Since June their price has be $3.89 with no change at all. As far as I can tell, the place is open and operating.
 
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Old 10-29-12, 06:31 AM
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For the most part I traveled 2 line hwys but on the 4 lane divided hwy I was on for a few miles, had prices from $3.39 - $3.09 I'm used to prices being higher next to the interstate or in the county, miles from another store but I keep seeing big price differences in stores within a quarter mile of each other.
 
  #28  
Old 10-29-12, 09:53 AM
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Originally Posted by drooplug
It's all supply and demand. If demand for oil was low, speculators would not be able to sell their contracts at high prices. Oil has been trading on the open market since the 1980's. If speculators could control the price to their advantage, the price of oil would have been sky high since the 1980's. Instead, the price of oil went down to record lows.
No way supply & demand explains the wild ride we've been on since 9/11/01. The "herd mentality" in Wall Street virtually guarantees that the few can and will ignite a stampede of the many. Almost every day's stock reports includes some "profit-taking" in one market or commodity or another. How the brokers perceive the future sets the prices, not reality. If Warren Buffet wakes up tomorrow and feels that oil prices could go way up Wednesday & so buys a crapload of oil futures, and WB watchers feel he's on to something, they will follow suit and prices will skyrocket. What does that have to do with supply & demand other than it's artificial demand?
 
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