GasBuddy News Article

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Gasoline's usual factors don't quite apply

Market Watch -- SAN FRANCISCO (MarketWatch) -- The summer driving season is about to come to an official end this Labor Day weekend, but gasoline prices have been falling for weeks -- along with supply and demand.

Average retail prices for regular gasoline have dropped 11% from a record high of $4.114 per gallon set on July 17, data from the Oil Price Information Service showed. They stood at $3.66 on Thursday.

The price declines come as no surprise given the recent drop in crude-oil prices and fuel demand, but gasoline supplies have been dropping too.

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Submitted Aug 29, 2008 By: JT

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mfeldstein Champion Author Ottawa Posts:2,868 Points:881,185 Joined:Feb 2007	Message Posted: Aug 30, 2008 9:42:14 PM Ignore mfeldstein Report Abuse Not only the oil companies and OPEC; the refineries also control supply and pricing.
JoeKR Champion Author New Jersey Posts:4,210 Points:994,470 Joined:Feb 2006	Message Posted: Aug 30, 2008 1:31:26 PM Ignore JoeKR Report Abuse Business as usual! Hope this is the speculators last hurrah and the stations that have jumped their prices with no corresponding rise in their cost are left holding the bag.
weenerdog Champion Author Detroit Posts:4,055 Points:770,300 Joined:Jan 2008	Message Posted: Aug 30, 2008 1:13:39 PM Ignore weenerdog Report Abuse They're surprised that gasoline supplies have been dropping too? If the demand is dropping and the supplies are also dropping, it's probably because companies have responded to the drop in demand by cutting back on production. No company is going keep piling on more surplus to their inventories, no matter what product they make.
billy44bo Champion Author Mobile Posts:2,542 Points:473,845 Joined:Feb 2008	Message Posted: Aug 30, 2008 12:15:45 PM Ignore billy44bo Report Abuse they are going up on they gulf coast and some station are out of gas
dabuzman Champion Author Seattle Posts:3,167 Points:864,080 Joined:Apr 2006	Message Posted: Aug 30, 2008 12:05:11 PM Ignore dabuzman Report Abuse Yap!
letmathe Champion Author Chicago Posts:9,226 Points:2,132,370 Joined:May 2001	Message Posted: Aug 30, 2008 12:02:33 PM Ignore letmathe Report Abuse ditto
mrkel Champion Author Cincinnati Posts:3,867 Points:1,270,635 Joined:Apr 2006	Message Posted: Aug 30, 2008 11:58:24 AM Ignore mrkel Report Abuse I'm surprised gas prices did not shoot up before the weekend and with the threat of Gustav causing possible havoc on the Gulf operations.
LeeFree Champion Author Pittsburgh Posts:3,536 Points:1,123,425 Joined:Jun 2005	Message Posted: Aug 30, 2008 11:55:33 AM Ignore LeeFree Report Abuse That's because gasoline prices were artificially high and still are.
travelzonecente Champion Author Riverside Posts:1,793 Points:431,860 Joined:Jun 2008	Message Posted: Aug 30, 2008 11:50:58 AM Ignore travelzonecente Report Abuse It will go back up as soon as the elections are over.
REVLAW Champion Author San Antonio Posts:4,525 Points:860,250 Joined:Jul 2007	Message Posted: Aug 30, 2008 11:49:46 AM Ignore REVLAW Report Abuse A poor guy was walking down the street the other day with a penny in his hand. Strange, a rich man was following closely watching the penny.
woos777 Champion Author Washington Posts:2,611 Points:864,055 Joined:Sep 2006	Message Posted: Aug 30, 2008 11:46:51 AM Ignore woos777 Report Abuse Whatever it takes. Keep them falling
HawaiianGuy Champion Author Idaho Posts:3,728 Points:1,941,125 Joined:May 2003	Message Posted: Aug 30, 2008 11:40:38 AM Ignore HawaiianGuy Report Abuse Supply and demand doesn't seem to work anymore, at least not around hereabouts.
pricechecker08 Champion Author Ohio Posts:3,231 Points:663,490 Joined:Jan 2008	Message Posted: Aug 30, 2008 11:40:22 AM Ignore pricechecker08 Report Abuse I STILL SEE PRICES OVER 4 DOLLARS IN CALIFORNIA
dreamweaver7050 Champion Author Louisiana Posts:1,174 Points:574,390 Joined:Sep 2006	Message Posted: Aug 30, 2008 11:37:58 AM Ignore dreamweaver7050 Report Abuse going up
GasholeMI Champion Author Lansing Posts:4,400 Points:586,190 Joined:Jul 2008	Message Posted: Aug 30, 2008 11:34:47 AM Ignore GasholeMI Report Abuse They went up here a tiny bit and they are dropping already.
DerHahn Champion Author Illinois Posts:7,110 Points:974,760 Joined:May 2004	Message Posted: Aug 30, 2008 11:34:20 AM Ignore DerHahn Report Abuse what does apply when it comes to gas? demand has dropped drastically yet prices have only "slipped" from the highs they reached.
patbob56 Champion Author Colorado Springs Posts:2,890 Points:588,385 Joined:Apr 2006	Message Posted: Aug 30, 2008 11:33:43 AM Ignore patbob56 Report Abuse prices are rising here
ironbox_sara Champion Author Albany Posts:3,839 Points:1,125,295 Joined:Mar 2006	Message Posted: Aug 30, 2008 11:33:16 AM Ignore ironbox_sara Report Abuse Keep dropping.
qwikss Veteran Author Phoenix Posts:253 Points:82,745 Joined:May 2006	Message Posted: Aug 30, 2008 11:24:34 AM Ignore qwikss Report Abuse Old story
Cuzilla Champion Author Indianapolis Posts:7,971 Points:1,393,535 Joined:Sep 2005	Message Posted: Aug 30, 2008 11:23:26 AM Ignore Cuzilla Report Abuse Drop, drop, drop!!! Drill, drill, drill!!! Drill here, drill now, pay less!!!
rbrowdersr Champion Author Detroit Posts:2,412 Points:836,150 Joined:Aug 2006	Message Posted: Aug 30, 2008 11:23:25 AM Ignore rbrowdersr Report Abuse Gas prices will rise by whatever means.
coke_kid Champion Author Chicago Posts:1,032 Points:254,740 Joined:Nov 2005	Message Posted: Aug 30, 2008 11:18:43 AM Ignore coke_kid Report Abuse Nice thought duriarte but too late at this point...I wish.. gas is no where near dropping fast or enough to please any of us..way tooooooo high.. still a buck higher than last year when we were upset over 3 bucks and still are..The US is in danger! while we let gas co corrupt us in the pocket..
kevski Champion Author Oregon Posts:4,156 Points:659,095 Joined:Feb 2008	Message Posted: Aug 30, 2008 11:16:22 AM Ignore kevski Report Abuse big oil will find a way to jack prices
murdershewrote Champion Author Riverside Posts:3,758 Points:1,459,585 Joined:Mar 2005	Message Posted: Aug 30, 2008 11:15:44 AM Ignore murdershewrote Report Abuse lets see what happens now with ol' gustav...say he's a howling
baddog58 All-Star Author Texas Posts:871 Points:318,400 Joined:May 2007	Message Posted: Aug 30, 2008 11:14:48 AM Ignore baddog58 Report Abuse Labor Day weekend + start of school year will reverse the falling of prices...at least temporarily.
duriarte All-Star Author Utah Posts:899 Points:407,255 Joined:May 2008	Message Posted: Aug 30, 2008 11:10:46 AM Ignore duriarte Report Abuse We as a country are in big trouble if we think either of these political yahoos are going to do anything to help the common person. I think we need to start a grass roots movement to Vote For NONE OF THE ABOVE. Lets get some new candidates in there to run! And if we don't like them, then we will keep voting NONE OF THE ABOVE until we get the right people to run. Our Constitution states "WE THE PEOPLE", we need to take back this political process form the politicians [Edited by: duriarte at 8/30/2008 11:15:19 AM EST]
RdHogg Champion Author Houston Posts:13,562 Points:1,762,625 Joined:Jun 2004	Message Posted: Aug 30, 2008 11:08:19 AM Ignore RdHogg Report Abuse OK?
Razzincain Champion Author Kansas Posts:1,341 Points:667,420 Joined:Aug 2005	Message Posted: Aug 30, 2008 11:05:07 AM Ignore Razzincain Report Abuse Lets all request a $1200 check in the mail like the Governor in Alaska did for her people. Then maybe all of us could take a short vacation.
Wolfwings Champion Author Delaware Posts:3,052 Points:650,580 Joined:May 2004	Message Posted: Aug 30, 2008 11:03:59 AM Ignore Wolfwings Report Abuse Last year, the price was $2.581. This year, almost $1.00 higher. When my social security check comes it does not reflect this jump. I will remember this each time I hear another lie from either of the politicians PROMISING to make MY life better in the next four years. I PROMISE!
evasilion All-Star Author Virginia Beach Posts:701 Points:132,320 Joined:Mar 2008	Message Posted: Aug 30, 2008 11:03:58 AM Ignore evasilion Report Abuse What?
DTape Rookie Author Houston Posts:98 Points:519,540 Joined:Dec 2005	Message Posted: Aug 30, 2008 10:59:57 AM Ignore DTape Report Abuse Hmm again I agree this is OLD NEWS, but the reason SUPPLY has been FALLING is that REFINERIES HAVE BEEN CUTTING BACK ON PRODUCTION to try to sustain the higher prices.
Prodaddy Champion Author Houston Posts:3,401 Points:837,490 Joined:May 2007	Message Posted: Aug 30, 2008 10:59:35 AM Ignore Prodaddy Report Abuse maakes sense
HEBster Champion Author Kentucky Posts:3,118 Points:1,238,110 Joined:May 2006	Message Posted: Aug 30, 2008 10:58:30 AM Ignore HEBster Report Abuse What else is new???
Parif Champion Author Virginia Posts:1,123 Points:205,015 Joined:May 2008	Message Posted: Aug 30, 2008 10:57:34 AM Ignore Parif Report Abuse everyone says this
chas_commuter All-Star Author South Carolina Posts:830 Points:226,085 Joined:Mar 2008	Message Posted: Aug 30, 2008 10:56:50 AM Ignore chas_commuter Report Abuse Blah blah blah, this is old news
C4U Champion Author Salt Lake City Posts:3,369 Points:643,540 Joined:May 2008	Message Posted: Aug 30, 2008 10:56:46 AM Ignore C4U Report Abuse The drop is because as consumers continue to use less they buy less so if speculator want to speculate higher prices to get rich the consumer just buys less.
ardmoretoday Champion Author Oklahoma Posts:1,424 Points:569,265 Joined:May 2007	Message Posted: Aug 30, 2008 10:48:38 AM Ignore ardmoretoday Report Abuse Old news
Don20 Champion Author Oklahoma City Posts:3,862 Points:1,473,190 Joined:Mar 2005	Message Posted: Aug 30, 2008 10:46:46 AM Ignore Don20 Report Abuse If demand is down, so should the price.??
WestsideGuyIN All-Star Author Indiana Posts:875 Points:188,645 Joined:Aug 2007	Message Posted: Aug 30, 2008 10:46:26 AM Ignore WestsideGuyIN Report Abuse Where did this person get her degree? This is one of the most poorly written articles I've ever read. Where's the flow and continuity leading to the conclusion? In the end, usual factors do apply. Gas is expensive, people stop buying it. When companies artificially depress supply, people get angry and purchase even less. At some point, somethings gotta give. I for one believe the consumer will ultimately win.
bbreff Champion Author Atlanta Posts:4,307 Points:1,467,945 Joined:Jun 2005	Message Posted: Aug 30, 2008 10:46:11 AM Ignore bbreff Report Abuse OK
Lengas Champion Author Gary Posts:7,424 Points:1,566,255 Joined:Nov 2004	Message Posted: Aug 30, 2008 10:44:25 AM Ignore Lengas Report Abuse Its 25 to 30 cents a gloon cheaper in PA than at home.
cantonbill All-Star Author Atlanta Posts:532 Points:130,525 Joined:Mar 2008	Message Posted: Aug 30, 2008 10:43:19 AM Ignore cantonbill Report Abuse I've always wondered why people will go to more expensive gas station when cheaper gas is right next door.
rjb21760 Champion Author Chicago Posts:2,097 Points:668,360 Joined:Oct 2006	Message Posted: Aug 30, 2008 10:42:41 AM Ignore rjb21760 Report Abuse How do you factor in greed from speculators?
EXTREMESNOW Champion Author Oregon Posts:3,640 Points:781,585 Joined:Jul 2006	Message Posted: Aug 30, 2008 10:41:47 AM Ignore EXTREMESNOW Report Abuse THEY HAVE CUT BACK ON PRODUCTION TO KEEP PRICES FROM PLUMMETING AT THE SAME RATE AS OIL.
bluebird1 Champion Author Toronto Posts:9,819 Points:1,971,725 Joined:May 2004	Message Posted: Aug 30, 2008 10:40:56 AM Ignore bluebird1 Report Abuse Well cantonbill, I guess your prices haven't hit hard enough there then. You don't see that happening much anymore up here (except in case on discount cards) but we are at $5.85 /gal Cdn....and no our prices haven't been falling consistently at all & only 6-7 cents a Liter from the summer highs (high of 1.36/L, currenty 1.297/L).
TTPDX Sophomore Author Portland Posts:231 Points:42,795 Joined:Jan 2008	Message Posted: Aug 30, 2008 10:38:59 AM Ignore TTPDX Report Abuse Since when was the 'free' market really free? The oil industry has been dominated by oligarchy since the 19th century-- whether in the West or the Middle East.
mwhals Champion Author Charleston Posts:7,679 Points:1,295,810 Joined:Jun 2006	Message Posted: Aug 30, 2008 10:37:22 AM Ignore mwhals Report Abuse There is no real rhyme or reason as to how gas prices are calculated any more.
cantonbill All-Star Author Atlanta Posts:532 Points:130,525 Joined:Mar 2008	Message Posted: Aug 30, 2008 10:34:20 AM Ignore cantonbill Report Abuse People are stupid about buying the cheapest gas. We had a $.13/gallon differential in price between a name brand and a discount brand right next to one another and people were still filling up at the more expensive name brand station.
cantonbill All-Star Author Atlanta Posts:532 Points:130,525 Joined:Mar 2008	Message Posted: Aug 30, 2008 10:31:56 AM Ignore cantonbill Report Abuse Why have supplies been falling if demand is down? This strikes me as an attempt to create artificial shortage and keep prices high.
GasaHawg All-Star Author Texas Posts:620 Points:127,570 Joined:Nov 2005	Message Posted: Aug 30, 2008 10:31:43 AM Ignore GasaHawg Report Abuse And why are the gas supplies dropping with less demand. So much for a free market.