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I was so prepared for 5 dollor gas this summer as for the past 9 years gas has gone up each summer. Well gas in NV is 2.47 and last yeah this date 4.50. What gives? Is it the messiah? How can this year be different and no one seems to say a word, like just done. How is this possible>?
The oil futures market is indeed a very strange place. Barring the conspiracy theories I think it's probably a supply and demand thing that's effecting the prices at the moment. The world is in recession. Less demand. Lower prices.
Prices are established by demand and the commodity buyers that gamble on futures. The return on investment for consumer gasoline is low and oil companies do not control the prices. In fact, the governments in the US (federal and state) take it twice the profit of the oil companies. So if anyone has a vested interest in higher gasoline prices, it's the government.
Well the economies of the world are down. Decreased economic activity results in less resources used. Less Demand = Lower Prices (Not taking into account the speculation by future investors).
We're at $2.29 as of yesterday.
I just cant believe that demand is so down.......and no one has a REAL anwser.....and I looked. So Global markets have that much effect on america, I dont think Gas usage in the USA is down by that much.
::Puts on tinfoil hat::
It's down in the US, but you have to understand that the market doesn't just reflect the US demand - it's WORLDWIDE demand. Just think of all the idle factories in China and around the globe. That's energy not being consumed. Gas prices are not effected by just how much driving is done. OIL is the commodity, not gasoline.Quote:
Originally Posted by [AK]Camelwalk