Not Logged In Log In   Sign Up   Points Leaders
Follow Us    3:30 PM

GasBuddy News Article

50
votes
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.


Read the Full Article

Submitted Aug 29, 2008 By: JT
Category: Daily News Article Discussions > Topics Add to favorite topics   Post new topicPost New Topic
Author Topic: Gasoline's usual factors don't quite apply Topic is locked Back to Topics
REPLIES (newest first)
Profile Pic
mfeldstein Car icon
Champion Author Ottawa

Posts:2,868
Points:881,185
Joined:Feb 2007
Message Posted: Aug 30, 2008 9:42:14 PM

Not only the oil companies and OPEC; the refineries also control supply and pricing.
Profile Pic
JoeKR Car icon
Champion Author New Jersey

Posts:4,210
Points:994,470
Joined:Feb 2006
Message Posted: Aug 30, 2008 1:31:26 PM

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.
Profile Pic
weenerdog Car icon
Champion Author Detroit

Posts:4,055
Points:770,300
Joined:Jan 2008
Message Posted: Aug 30, 2008 1:13:39 PM

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.
Profile Pic
billy44bo Car icon
Champion Author Mobile

Posts:2,542
Points:473,845
Joined:Feb 2008
Message Posted: Aug 30, 2008 12:15:45 PM

they are going up on they gulf coast and some station are out of gas
Profile Pic
dabuzman Car icon
Champion Author Seattle

Posts:3,167
Points:864,080
Joined:Apr 2006
Message Posted: Aug 30, 2008 12:05:11 PM

Yap!
Profile Pic
letmathe Car icon
Champion Author Chicago

Posts:9,226
Points:2,132,370
Joined:May 2001
Message Posted: Aug 30, 2008 12:02:33 PM

ditto
Profile Pic
mrkel Car icon
Champion Author Cincinnati

Posts:3,867
Points:1,270,635
Joined:Apr 2006
Message Posted: Aug 30, 2008 11:58:24 AM

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.
Profile Pic
LeeFree Car icon
Champion Author Pittsburgh

Posts:3,536
Points:1,123,425
Joined:Jun 2005
Message Posted: Aug 30, 2008 11:55:33 AM

That's because gasoline prices were artificially high and still are.
Profile Pic
travelzonecente Car icon
Champion Author Riverside

Posts:1,793
Points:431,860
Joined:Jun 2008
Message Posted: Aug 30, 2008 11:50:58 AM

It will go back up as soon as the elections are over.
Profile Pic
REVLAW Car icon
Champion Author San Antonio

Posts:4,525
Points:860,250
Joined:Jul 2007
Message Posted: Aug 30, 2008 11:49:46 AM

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.
Profile Pic
woos777 Car icon
Champion Author Washington

Posts:2,611
Points:864,055
Joined:Sep 2006
Message Posted: Aug 30, 2008 11:46:51 AM

Whatever it takes. Keep them falling
Profile Pic
HawaiianGuy Car icon
Champion Author Idaho

Posts:3,728
Points:1,941,125
Joined:May 2003
Message Posted: Aug 30, 2008 11:40:38 AM

Supply and demand doesn't seem to work anymore, at least not around hereabouts.
Profile Pic
pricechecker08 Car icon
Champion Author Ohio

Posts:3,231
Points:663,490
Joined:Jan 2008
Message Posted: Aug 30, 2008 11:40:22 AM

I STILL SEE PRICES OVER 4 DOLLARS IN CALIFORNIA
Profile Pic
dreamweaver7050 Car icon
Champion Author Louisiana

Posts:1,174
Points:574,390
Joined:Sep 2006
Message Posted: Aug 30, 2008 11:37:58 AM

going up
Profile Pic
GasholeMI Car icon
Champion Author Lansing

Posts:4,400
Points:586,190
Joined:Jul 2008
Message Posted: Aug 30, 2008 11:34:47 AM

They went up here a tiny bit and they are dropping already.
Profile Pic
DerHahn Car icon
Champion Author Illinois

Posts:7,110
Points:974,760
Joined:May 2004
Message Posted: Aug 30, 2008 11:34:20 AM

what does apply when it comes to gas? demand has dropped drastically yet prices have only "slipped" from the highs they reached.
Profile Pic
patbob56 Car icon
Champion Author Colorado Springs

Posts:2,890
Points:588,385
Joined:Apr 2006
Message Posted: Aug 30, 2008 11:33:43 AM

prices are rising here
Profile Pic
ironbox_sara Car icon
Champion Author Albany

Posts:3,839
Points:1,125,295
Joined:Mar 2006
Message Posted: Aug 30, 2008 11:33:16 AM

Keep dropping.
Profile Pic
qwikss Car icon
Veteran Author Phoenix

Posts:253
Points:82,745
Joined:May 2006
Message Posted: Aug 30, 2008 11:24:34 AM

Old story
Profile Pic
Cuzilla Car icon
Champion Author Indianapolis

Posts:7,971
Points:1,393,535
Joined:Sep 2005
Message Posted: Aug 30, 2008 11:23:26 AM

Drop, drop, drop!!!

Drill, drill, drill!!!

Drill here, drill now, pay less!!!
Profile Pic
rbrowdersr Car icon
Champion Author Detroit

Posts:2,412
Points:836,150
Joined:Aug 2006
Message Posted: Aug 30, 2008 11:23:25 AM

Gas prices will rise by whatever means.
Profile Pic
coke_kid Car icon
Champion Author Chicago

Posts:1,032
Points:254,740
Joined:Nov 2005
Message Posted: Aug 30, 2008 11:18:43 AM

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..
Profile Pic
kevski Car icon
Champion Author Oregon

Posts:4,156
Points:659,095
Joined:Feb 2008
Message Posted: Aug 30, 2008 11:16:22 AM

big oil will find a way to jack prices
Profile Pic
murdershewrote Car icon
Champion Author Riverside

Posts:3,758
Points:1,459,585
Joined:Mar 2005
Message Posted: Aug 30, 2008 11:15:44 AM

lets see what happens now with ol' gustav...say he's a howling
Profile Pic
baddog58 Car icon
All-Star Author Texas

Posts:871
Points:318,400
Joined:May 2007
Message Posted: Aug 30, 2008 11:14:48 AM

Labor Day weekend + start of school year will reverse the falling of prices...at least temporarily.
Profile Pic
duriarte Car icon
All-Star Author Utah

Posts:899
Points:407,255
Joined:May 2008
Message Posted: Aug 30, 2008 11:10:46 AM

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]
Profile Pic
RdHogg Car icon
Champion Author Houston

Posts:13,562
Points:1,762,625
Joined:Jun 2004
Message Posted: Aug 30, 2008 11:08:19 AM

OK?
Profile Pic
Razzincain Car icon
Champion Author Kansas

Posts:1,341
Points:667,420
Joined:Aug 2005
Message Posted: Aug 30, 2008 11:05:07 AM

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.
Profile Pic
Wolfwings Car icon
Champion Author Delaware

Posts:3,052
Points:650,580
Joined:May 2004
Message Posted: Aug 30, 2008 11:03:59 AM

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!
Profile Pic
evasilion Car icon
All-Star Author Virginia Beach

Posts:701
Points:132,320
Joined:Mar 2008
Message Posted: Aug 30, 2008 11:03:58 AM

What?
Profile Pic
DTape Car icon
Rookie Author Houston

Posts:98
Points:519,540
Joined:Dec 2005
Message Posted: Aug 30, 2008 10:59:57 AM

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.
Profile Pic
Prodaddy Car icon
Champion Author Houston

Posts:3,401
Points:837,490
Joined:May 2007
Message Posted: Aug 30, 2008 10:59:35 AM

maakes sense
Profile Pic
HEBster Car icon
Champion Author Kentucky

Posts:3,118
Points:1,238,110
Joined:May 2006
Message Posted: Aug 30, 2008 10:58:30 AM

What else is new???
Profile Pic
Parif Car icon
Champion Author Virginia

Posts:1,123
Points:205,015
Joined:May 2008
Message Posted: Aug 30, 2008 10:57:34 AM

everyone says this
Profile Pic
chas_commuter Car icon
All-Star Author South Carolina

Posts:830
Points:226,085
Joined:Mar 2008
Message Posted: Aug 30, 2008 10:56:50 AM

Blah blah blah, this is old news
Profile Pic
C4U Car icon
Champion Author Salt Lake City

Posts:3,369
Points:643,540
Joined:May 2008
Message Posted: Aug 30, 2008 10:56:46 AM

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.
Profile Pic
ardmoretoday Car icon
Champion Author Oklahoma

Posts:1,424
Points:569,265
Joined:May 2007
Message Posted: Aug 30, 2008 10:48:38 AM

Old news
Profile Pic
Don20 Car icon
Champion Author Oklahoma City

Posts:3,862
Points:1,473,190
Joined:Mar 2005
Message Posted: Aug 30, 2008 10:46:46 AM

If demand is down, so should the price.??
Profile Pic
WestsideGuyIN Car icon
All-Star Author Indiana

Posts:875
Points:188,645
Joined:Aug 2007
Message Posted: Aug 30, 2008 10:46:26 AM

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.
Profile Pic
bbreff Car icon
Champion Author Atlanta

Posts:4,307
Points:1,467,945
Joined:Jun 2005
Message Posted: Aug 30, 2008 10:46:11 AM


OK
Profile Pic
Lengas Car icon
Champion Author Gary

Posts:7,424
Points:1,566,255
Joined:Nov 2004
Message Posted: Aug 30, 2008 10:44:25 AM

Its 25 to 30 cents a gloon cheaper in PA than at home.
Profile Pic
cantonbill Car icon
All-Star Author Atlanta

Posts:532
Points:130,525
Joined:Mar 2008
Message Posted: Aug 30, 2008 10:43:19 AM

I've always wondered why people will go to more expensive gas station when cheaper gas is right next door.
Profile Pic
rjb21760 Car icon
Champion Author Chicago

Posts:2,097
Points:668,360
Joined:Oct 2006
Message Posted: Aug 30, 2008 10:42:41 AM

How do you factor in greed from speculators?
Profile Pic
EXTREMESNOW Car icon
Champion Author Oregon

Posts:3,640
Points:781,585
Joined:Jul 2006
Message Posted: Aug 30, 2008 10:41:47 AM

THEY HAVE CUT BACK ON PRODUCTION TO KEEP PRICES FROM PLUMMETING AT THE SAME RATE AS OIL.
Profile Pic
bluebird1 Car icon
Champion Author Toronto

Posts:9,819
Points:1,971,725
Joined:May 2004
Message Posted: Aug 30, 2008 10:40:56 AM

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).
Profile Pic
TTPDX Car icon
Sophomore Author Portland

Posts:231
Points:42,795
Joined:Jan 2008
Message Posted: Aug 30, 2008 10:38:59 AM

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.
Profile Pic
mwhals Car icon
Champion Author Charleston

Posts:7,679
Points:1,295,810
Joined:Jun 2006
Message Posted: Aug 30, 2008 10:37:22 AM

There is no real rhyme or reason as to how gas prices are calculated any more.
Profile Pic
cantonbill Car icon
All-Star Author Atlanta

Posts:532
Points:130,525
Joined:Mar 2008
Message Posted: Aug 30, 2008 10:34:20 AM

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.
Profile Pic
cantonbill Car icon
All-Star Author Atlanta

Posts:532
Points:130,525
Joined:Mar 2008
Message Posted: Aug 30, 2008 10:31:56 AM

Why have supplies been falling if demand is down? This strikes me as an attempt to create artificial shortage and keep prices high.
Profile Pic
GasaHawg Car icon
All-Star Author Texas

Posts:620
Points:127,570
Joined:Nov 2005
Message Posted: Aug 30, 2008 10:31:43 AM

And why are the gas supplies dropping with less demand. So much for a free market.
Topic is locked Back to Topics