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It Only Took A Global Depression To Reduce Gas Prices By 40 Cents

The Burning Platform -- mainstream media channels breathlessly announce that gas prices have dropped for the 24th day in a row and are now back to $3.55 a gallon.

never give the viewer or reader any historical context to judge the true impact of the price increase or decrease.

The EIA is now predicting further drops in prices. Two months ago they predicted steadily rising prices through the summer.

As you can see from the chart, gas prices tend to be volatile and unpredictable in the short term. You can also see that since 1998 the trend has been relentlessly higher. The average inflation adjusted price of gasoline in 1998 was $1.41 per gallon, versus $3.55 today, a 152% increase in fourteen years.
If we are swimming in oil, as the MSM pundits claim, why the tremendous surge in price? It must be those evil oil

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Submitted Jun 11, 2012 By: ccf_jeff

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honda0105 Champion Author Tallahassee Posts:18,599 Points:1,607,570 Joined:Nov 2008	Message Posted: Jun 15, 2012 5:57:58 AM Ignore honda0105 Report Abuse ccf: yes, demand in India and China has grown over the past few years, but it is slowing down there too. After all, there are worries about China's economy growing no longer in the double digits but slowing under 10%. And the novelty of creeping cars (you don't get to drive b/c there is always major congestion) is wearing off.
sparky808 Champion Author Honolulu Posts:2,993 Points:596,760 Joined:Sep 2011	Message Posted: Jun 12, 2012 1:31:07 PM Ignore sparky808 Report Abuse Thank you for posting.
ccf_jeff Champion Author St. Louis Posts:15,271 Points:2,562,625 Joined:Sep 2005	Message Posted: Jun 12, 2012 11:23:32 AM Ignore ccf_jeff Report Abuse To be fair to the refineries or whomever, Martinman, oil prices rose much faster than gas prices in the months leading up to the peak price. The ratio at the very peak between oil prices & gas prices was out of its historical norm. Not sure of exactly why that was the case, but I think it was mostly due to two factors. One was foreign demand for oil which wasn't dropping as fast in many countries as it was here. Prices were set by some of those governments and were subsidized. Prices on the world market were rising a lot faster than they were in their local economies so people weren't cutting back as much. I think demand had actually been growing in some places. I've read that the U.S. was also buying oil to continue filling the strategic petroleum reserve despite the very high and rising prices. Apparently our government was also buying into the peak oil theory and were trying to load up before the prices went even higher. I believe China was doing the same.
Martinman Champion Author Mississippi Posts:14,729 Points:2,091,880 Joined:Sep 2005	Message Posted: Jun 12, 2012 8:02:06 AM Ignore Martinman Report Abuse 60% of $147 = 88.40 (price of a barrel of crude oil) 60% of $4.117 = $2.4702 (price of a gallon of gasoline) $147 per barrel and $4.117 were the peak prices when crude went through the roof in 2008. With crude oil having been below $88 per barrel for quite some time now, there is no legitimate reason for the national average to be above $3-per-gallon, let alone at $3.55 - more than a dollar higher than it should be based upon the "cost" of crude on the spot market.
remay Champion Author Houston Posts:6,958 Points:2,115,665 Joined:May 2006	Message Posted: Jun 12, 2012 6:49:23 AM Ignore remay Report Abuse Really???
DrCashFlow Champion Author Massachusetts Posts:7,059 Points:1,625,275 Joined:Jun 2008	Message Posted: Jun 12, 2012 5:03:25 AM Ignore DrCashFlow Report Abuse Next recession will have officially started either 2q or 3q12
kgbellman Champion Author Ann Arbor Posts:2,703 Points:729,890 Joined:Mar 2011	Message Posted: Jun 12, 2012 1:46:06 AM Ignore kgbellman Report Abuse Wish we saw that
Bonito Champion Author Dayton Posts:15,740 Points:3,005,945 Joined:Jun 2004	Message Posted: Jun 12, 2012 12:09:33 AM Ignore Bonito Report Abuse HAVEN'T SEEN IT AT THE PUMP IN OHIO AND I DON'T THINK ANYTHING WILL EVER CHANGE TILL WE TAKE THE MONEY FROM THE RICH!
10k Champion Author North Carolina Posts:21,240 Points:2,253,045 Joined:May 2006	Message Posted: Jun 12, 2012 12:07:45 AM Ignore 10k Report Abuse "..The average inflation adjusted price of gasoline in 1998 was $1.41 per gallon, versus $3.55 today, a 152% increase in fourteen years.".. does anybody who still has a job have an increase of 152% in their paycheck since bill clinton's last two years ??.. [Edited by: 10k at 6/12/2012 12:08:37 AM EST]
N5EXY Champion Author Austin Posts:5,487 Points:1,508,655 Joined:Jul 2004	Message Posted: Jun 12, 2012 12:06:22 AM Ignore N5EXY Report Abuse Bozama sez the private sector is doing fine. We need more gummint. I thought that was what the 800 billion spendulus was for 3 years ago.
Vitobug Champion Author El Paso Posts:1,955 Points:639,185 Joined:May 2011	Message Posted: Jun 12, 2012 12:05:13 AM Ignore Vitobug Report Abuse ok
mcmonsta Champion Author Honolulu Posts:3,222 Points:816,820 Joined:Sep 2009	Message Posted: Jun 12, 2012 12:05:03 AM Ignore mcmonsta Report Abuse so we cannot win either way?
cokezero All-Star Author Philadelphia Posts:830 Points:401,510 Joined:May 2009	Message Posted: Jun 12, 2012 12:03:58 AM Ignore cokezero Report Abuse ok
joel27nc Champion Author Raleigh Posts:10,527 Points:1,856,420 Joined:Mar 2008	Message Posted: Jun 12, 2012 12:03:56 AM Ignore joel27nc Report Abuse Needs to go another $2/gallon drop.
badspots Champion Author Houston Posts:2,079 Points:674,170 Joined:Feb 2011	Message Posted: Jun 12, 2012 12:02:59 AM Ignore badspots Report Abuse Ok.
gd83goldwinger Champion Author South Bend Posts:1,428 Points:503,480 Joined:May 2011	Message Posted: Jun 12, 2012 12:01:05 AM Ignore gd83goldwinger Report Abuse Everything gong up but the common man's pay stays the same.
jem069 Champion Author Detroit Posts:2,533 Points:686,105 Joined:Jan 2011	Message Posted: Jun 12, 2012 12:00:45 AM Ignore jem069 Report Abuse ok
CdnLynx Champion Author Ontario Posts:1,020 Points:523,005 Joined:May 2008	Message Posted: Jun 12, 2012 12:00:45 AM Ignore CdnLynx Report Abuse Finally using the proper name "Depression". Einsteins
southrob Champion Author Tucson Posts:3,590 Points:686,225 Joined:Mar 2011	Message Posted: Jun 12, 2012 12:00:37 AM Ignore southrob Report Abuse great article...
monarch57 Champion Author British Columbia Posts:1,625 Points:135,500 Joined:Nov 2008	Message Posted: Jun 11, 2012 11:57:05 PM Ignore monarch57 Report Abuse And a 0%wage increase since then.
carloco75 Champion Author Richmond Posts:3,711 Points:599,390 Joined:Oct 2010	Message Posted: Jun 11, 2012 11:54:57 PM Ignore carloco75 Report Abuse Only...
GSORIOS Sophomore Author California Posts:153 Points:8,030 Joined:Jun 2012	Message Posted: Jun 11, 2012 11:51:39 PM Ignore GSORIOS Report Abuse My My What will it take to reduce it by 1 dollar?
benjy Champion Author Chicago Posts:8,591 Points:1,786,800 Joined:Nov 2003	Message Posted: Jun 11, 2012 11:51:05 PM Ignore benjy Report Abuse really...
suzmar Champion Author Texas Posts:2,212 Points:871,115 Joined:Jun 2006	Message Posted: Jun 11, 2012 11:49:33 PM Ignore suzmar Report Abuse Prices are still high and we have a global depression, not great news for Mr. Obama's re-election hopes.
sillywagon Champion Author New York Posts:14,874 Points:1,440,145 Joined:Oct 2008	Message Posted: Jun 11, 2012 11:48:16 PM Ignore sillywagon Report Abuse "jobless recovery"
NemoIL Champion Author Illinois Posts:3,015 Points:1,311,170 Joined:Aug 2008	Message Posted: Jun 11, 2012 11:47:22 PM Ignore NemoIL Report Abuse This is exactly where our dear leader it taking us.
seeyardee Champion Author Sacramento Posts:9,091 Points:1,803,530 Joined:Apr 2008	Message Posted: Jun 11, 2012 11:43:18 PM Ignore seeyardee Report Abuse Why can't we just admit that we're not out of the recession/depression that started in 2008?
skyking19 Champion Author Little Rock Posts:1,996 Points:1,697,840 Joined:Jan 2007	Message Posted: Jun 11, 2012 11:43:14 PM Ignore skyking19 Report Abuse At some point supply and demand still has an effect.
BlueberryFocus All-Star Author Rochester Posts:553 Points:128,760 Joined:Feb 2012	Message Posted: Jun 11, 2012 11:40:49 PM Ignore BlueberryFocus Report Abuse Can we just get off of the oil bandwagon now please?
serrog Champion Author Nova Scotia Posts:5,554 Points:1,510,180 Joined:Oct 2008	Message Posted: Jun 11, 2012 11:39:49 PM Ignore serrog Report Abuse Law of the economic jungle
Eugenian Champion Author Oregon Posts:1,852 Points:360,305 Joined:Oct 2009	Message Posted: Jun 11, 2012 11:38:07 PM Ignore Eugenian Report Abuse How depressing.
iamforiu Champion Author Indiana Posts:3,565 Points:709,690 Joined:May 2011	Message Posted: Jun 11, 2012 11:37:32 PM Ignore iamforiu Report Abuse ok
rippertoo Champion Author Tacoma Posts:5,745 Points:1,139,885 Joined:Jan 2010	Message Posted: Jun 11, 2012 11:37:28 PM Ignore rippertoo Report Abuse The never ending story.
abcdMA Champion Author Worcester Posts:7,917 Points:1,574,005 Joined:Nov 2008	Message Posted: Jun 11, 2012 11:36:34 PM Ignore abcdMA Report Abuse double dip recession on its way!! Summer of Recover, take 3--another failure
tidalwave3 Champion Author Tallahassee Posts:1,299 Points:1,461,900 Joined:Jun 2008	Message Posted: Jun 11, 2012 11:35:27 PM Ignore tidalwave3 Report Abuse clermont40miles is partial correct... Notice the Dollar Index has risen 20 within the year and gov't regulations are being exposed :)
Blue48 Champion Author Illinois Posts:7,300 Points:1,636,970 Joined:Feb 2007	Message Posted: Jun 11, 2012 11:27:37 PM Ignore Blue48 Report Abuse WHATEVER!
pgerassi Champion Author Milwaukee Posts:10,891 Points:2,130,630 Joined:Apr 2007	Message Posted: Jun 11, 2012 11:24:30 PM Ignore pgerassi Report Abuse Keep dropping!
carinthuist Champion Author San Francisco Posts:2,238 Points:328,285 Joined:Mar 2012	Message Posted: Jun 11, 2012 11:18:30 PM Ignore carinthuist Report Abuse great about time.
clermont40miles Champion Author Cincinnati Posts:10,562 Points:1,770,920 Joined:Apr 2008	Message Posted: Jun 11, 2012 11:18:12 PM Ignore clermont40miles Report Abuse It's difficult to believe there are those who think the prices are controlled by supply and demand. There has been little connection between the two since May 2009. And it has been less connected by far since February, 2011. Speculation and refineries combine to keep prices artificially bloated to the benefit of all but the retail buyers. The fleecing continues apace.
esquared Champion Author Oklahoma City Posts:8,057 Points:1,968,160 Joined:Jan 2006	Message Posted: Jun 11, 2012 11:17:16 PM Ignore esquared Report Abuse "...designed to keep the average American sedated...." Yawn....
feistyfella All-Star Author Georgia Posts:881 Points:192,495 Joined:Jun 2010	Message Posted: Jun 11, 2012 11:14:00 PM Ignore feistyfella Report Abuse Burning
NedW Champion Author Indianapolis Posts:5,609 Points:1,141,270 Joined:Mar 2008	Message Posted: Jun 11, 2012 11:09:49 PM Ignore NedW Report Abuse It's difficult to believe there's still those that think high fuel prices are caused by those "meeanie" ol' speculators.
clermont40miles Champion Author Cincinnati Posts:10,562 Points:1,770,920 Joined:Apr 2008	Message Posted: Jun 11, 2012 11:08:08 PM Ignore clermont40miles Report Abuse GREEDway spiked today to 3.79. This is not helping!
DEG Champion Author Las Vegas Posts:17,615 Points:3,493,730 Joined:Jul 2003	Message Posted: Jun 11, 2012 11:06:59 PM Ignore DEG Report Abuse Gas prices should be around $2.50/gallon instead of $3.75/gallon.
blazerbob91 Champion Author Milwaukee Posts:6,135 Points:1,881,720 Joined:Aug 2005	Message Posted: Jun 11, 2012 11:06:39 PM Ignore blazerbob91 Report Abuse Still not low enough
jerej829 Champion Author Memphis Posts:2,846 Points:692,615 Joined:May 2011	Message Posted: Jun 11, 2012 11:06:29 PM Ignore jerej829 Report Abuse Whatever it takes.
wayoung56 Champion Author Alabama Posts:2,795 Points:817,360 Joined:Oct 2006	Message Posted: Jun 11, 2012 11:05:25 PM Ignore wayoung56 Report Abuse I'm still hoping for $2.49 gas...
bell05 Champion Author Atlanta Posts:9,245 Points:1,874,660 Joined:Jun 2005	Message Posted: Jun 11, 2012 11:04:26 PM Ignore bell05 Report Abuse We need ti disband the EIA.
drz614 Champion Author Harrisburg Posts:2,294 Points:596,645 Joined:Aug 2011	Message Posted: Jun 11, 2012 11:02:00 PM Ignore drz614 Report Abuse can't count on elected officials to give a crap about us anymore. no to e15
Holly123 Champion Author Charlotte Posts:3,192 Points:788,260 Joined:Dec 2010	Message Posted: Jun 11, 2012 11:01:25 PM Ignore Holly123 Report Abuse No big difference in price here either.