Yesterday after having a fun day out and about, we stopped to get gas. Surprisingly enough, the prices were quite low compared to just 3-weeks ago. Yes, $2.34 a gallon mid-range.
I told my husband 6-months ago that just before Election Day the prices would start dropping. And, yes they have! I've always felt the whole gas thing was rigged and crooked.
How low are your gas prices where you live? Do you feel the whole gas thing is rigged and crooked?
Lower gas prices, Um...Election trick?
November 3rd, 2008 at 11:51 am
November 3rd, 2008 at 02:07 pm 1225721245
Also, speculators and hedge funds have exited the market which has also reduced the price on oil. I have heard that $35 - $40 a barrel was speculation.
In fact, you hear OPEC cutting supply to try to raise price. Also, I am wondering about Canadian sand oil if we break $60. At a certain price point, Canada will stop producing sand oil and shale (sp?) oil in the US will not be profitable.
But good question.
November 3rd, 2008 at 03:43 pm 1225726993
To add, G.W. Bush was also hoarding oil to restore our strategic oil reserve at the cost of agitating the already high oil prices at the time. That was roughly 60 million barrels a day. But now that the oil reserve is near 100%, the hoarding has since stopped.
But the biggest thing is what merch mentioned: A combination of economic contraction and the loss of oil speculation.
I've been ranting for a while that the oil price was unsustainable, and that the bubble was going to burst any minute. That was a few months ago. (It was brought up because someone believed that oil was the key commodity to buy into at that time.)