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eraptorAug 9, 2011
It's a welcomed respite, even though it's likely to be brief.
The only thing causing the drop is hedge fund position liquidations. They'll be back to their destructive, speculative ways (i.e., driving our fuel prices through the roof) as soon as the market stabilizes.
vitriolandangstAug 9, 2011
Yeah -- if it were REALLY the "marketplace" deciding the price at the pump, it would be based on CURRENT demand vs. supply -- NOT on future speculation about demand. Hence; the price would not be dipping because hedge funds have to liquidate if it were actually fairly priced by the market.
These energy markets are manipulated by the energy companies themselves and other market makers.
eraptorAug 9, 2011
To quote Cousin Eddie in National Lampoon's Christmas Vacation..."Bingo" /oO\
charlotte_webAug 9, 2011
At least some good news in all of this mess.
bille3Aug 9, 2011
In 2006 crude oil went down to $60 and gas dropped to $2.20.
The big question is will the price of gas go down accordingly or not?
ka5p3rAug 9, 2011
where has the price dropped,i need to fill up,as yet i see it going up if anything.
plebesotericistAug 9, 2011
Price drops in crude oil generally take a long time to get to the consumer, but price hikes are nearly instantaneous.
ryanwbAug 9, 2011
It's a complete a joke, and purely gouging. I'm friendly with the gas station owner by my house - he told me that he gets fuel deliveries on a weekly basis but he changes his prices daily. It's borderline collusion because all of the surrounding stations follow suit.
Granted their profits on fuel are razor thin.
dvddesignAug 9, 2011
The reason for this is that keeping the prices high artificially through slowed price drops allows the gas station owners a profit buffer of sorts where they will continue to rake money in after the prices actually fall considerably. Oil can trade low for months but you won't see but a fraction of that drop on the pump totals for months afterwards, thankfully (for them) just in time for school to start back up, or the holidays, etc...
It's a vicious cycle. Don't be a competitive shopper like the OP here... That will just make you a paranoid shopper who regrets missing price drops/raises by cents and it's just not worth the headache.
The days of cheap gas are over kids.
vitriolandangstAug 9, 2011
I notice a similar universal constant;
The "Right Thing" takes years of withdrawal plans, or decades of raising standards so that markets aren't upset.
The "Wrong Thing" only takes about 6 months to invade a nation and a week to hike a credit card fee.
ronin4740Aug 9, 2011
Well, at least I'll have a full tank of gas so I can go to the store and buy that $1000.00 loaf of bread later this month.
vitriolandangstAug 9, 2011
So if these prices at the pump were due to taxes and the "free market" -- as we've been told by the "drill baby drill" crowd -- why would they be so affected by the Stock Market plunge?
The Oil Execs under testimony before congress have admitted that as much as 40% of the price of gas at the pump is due to Hedge Fund and Futures contracts speculation.
Some of these groups like "ICE" have back-door affiliations with the energy industry.
>> I just wanted to point that out. Of course, if industry shuts down, there will be less oil used -- but that hasn't HAPPENED YET. It is speculation on the FUTURE use of oil, not the demand of the actual marketplace that affects oil and gas prices.
So many who surmise that the "Free Market" gives us the best at the best price, don't seem to understand that the number one product is "some asset derived from imaginary value" -- basically, the Financial companies trading imaginary things that are based on the value that is a pretend assessment of the real thing. ACTUALLY making a product and delivering it, is not where the REAL profit is at.
A lot of these "values" are totally overblown -- and automatic purchasing of stocks by 401k plans and all the rest have irrationally overvalued companies. But where else is all this "money" going to go?
vitriolandangstAug 9, 2011
>> The downgrade of US credit is absurd, actually, since it can ALWAYS be paid back by printing money. The VALUE of the US dollar is really based on our ability to blow things up with our military (an obvious oversight that economics classes do not yet teach -- but you can quote me). These credit rating agencies were the same ones exaggerating the value of Credit Default Swaps -- but when you've got pretend assets, I suppose you've got to have powerful companies that pretend to fairly rate them -- the game, however rigged, is the only game in town, even though nobody could actually SPEND all the dollar assets that are floating around the world -- nor does anyone really know how much there is.
I think we are, however, in for bad economic times -- but MAINLY, because there is no reason for investors to INVEST in the USA if there is not going to be any stimulus for jobs. You don't put MORE money into any company if you think it's market is going to shrink.
Where do you put your money, when you have most of the assets worth taking, and you expect that land, housing, and financial institutions are going to LOSE value? What do you buy?
Apparently -- US Treasuries are in demand -- so what is S&P talking about? The US is no longer AAA -- but compared to what? Obviously, it would be fairer to say that almost every nation except Norway could be considered AA rated -- because what European banks are not in trouble due to the pilfering of Greece and other nations by these lauded Financial powerhouses like Goldman Sachs?
luckymothersmateAug 10, 2011
in your opinion, would the downgrade be based upon upon exaggeration by s&p or do you think that the possible default would be acceptable risk or cause for the downgrade? not sarcasm...an honest question.
agmlauncherAug 9, 2011
Quick tip: buy gas in small increments during oil slides. Don't fill your tank up. You only want to fill up your tank when there is an upward trend.
valkyriesAug 9, 2011
darn, lower gas prices.
dfletcherAug 9, 2011
I'll believe that when I see it. The current prices are the new normal. All this means is more money in the pockets of middlemen. It's like last week when the FAA was shut down and could not collect taxes from flyers. The airlines had the opportunity to pass on savings to their customers. What happened instead? They all raised their prices to match the old rate with the taxes on it.
gkiltzAug 10, 2011
The realization now is for a slow decline in demand. May not even be noticeable year-over-year, but the long term trend is down.
kcast985Aug 10, 2011
well at least i won't have to cringe when I pull into a gas station
murxAug 9, 2011
The reason they sell this 'cheap' is - they want money, quick and fast - to buy stocks, cheap.
They want to play poker at the big exchanges....
number23Aug 9, 2011
Until we cast of this oppressive regime that has cordon off America's mineral wealth, we'll continue to get whipsawed by oil prices. That is when the economy seems to be picking up, oil prices go up and when the economy slows down oil prices follow.
This is because margins are so thin, so ANY non OPEC controlled oil reaching the market will have a salutary effect on supplies and resulting prices.
shadyrightwingerAug 9, 2011
In other words, Americans have less money to buy oil and gas with.