Author Topic: Can someone explain? (Read 2054 times)

oldandslow · « **on:** October 07, 2008, 03:07:26 AM »

Why the price of oil has decline so much in the last few weeks?

As the price of oil climbed this year I read a tremendous amount of posts on this forum and others about those greedy old oil companies that just raise the price of oil whenever they want more money. Now that the price of oil has dropped roughly $51 a barrel does anyone care to give reasons why those greedy oil companies would volantarily lower the price of oil?

Just curious what eveyone has to say.

magooch · « **Reply #1 on:** October 07, 2008, 04:18:22 AM »

Well, the price of oil has dropped by about 40%; the price of gasoline has dropped about 20%. Seems like the profit margin is doing pretty well. These figures don't tell the whole story about who and how the profits are spread around, but it does show that the down-side isn't quite the same as the up-side on the price of a barrel of oil.

As a side-note--I think it was Dale who asked if anyone thought that the price of gasoline would ever drop below $3.00 per gallon. I just heard that the price in Springfield, Mo. is $2.89.

Heather · « **Reply #2 on:** October 07, 2008, 07:46:44 AM »

Wow! It's still over $4 a gal here. We are still experiencing a shortage as well though.

Heather

ms · « **Reply #3 on:** October 07, 2008, 08:16:34 AM »

Well I heard this preacher on the radio. Saying that oil will go down to 50 to 55 a barrel. The new world order is going to destroy the middle east and America money . There going to build up Russia this was three weeks ago. Gas here is 3.29.

Heavy C · « **Reply #4 on:** October 07, 2008, 12:32:16 PM »

Gas here is down to $3.31

The dollar is gaining strength against other currencies and oil is priced based on the dollar. Now you have a global economic slowdown which has cut back demand.

oldandslow · « **Reply #5 on:** October 07, 2008, 12:51:36 PM »

The question was tongue in cheek. What I was getting at was if the oil companies could just raise the price of the oil they sell when ever they wanted to the price wouldn't ever drop. They are subject to the same market forces as a lot of other products.

Graybeard · « **Reply #6 on:** October 07, 2008, 01:29:17 PM »

Down here the price of gas HAS NOT DROPPED and is still at or over $4 a gallon and most stations still don't have gas to pump.

Mike Britton · « **Reply #7 on:** October 07, 2008, 01:38:53 PM »

Quote from: Graybeard on October 07, 2008, 01:29:17 PM

Down here the price of gas HAS NOT DROPPED and is still at or over $4 a gallon and most stations still don't have gas to pump.

Paid $3.33 yesterday, and a couple of stations not far from my neighborhood near north Dallas are having a gas war at $2.89.

DalesCarpentry · « **Reply #8 on:** October 07, 2008, 02:01:15 PM »

I am happy to report that gas is now $3.29 a gallon here. I think in a little more time it will be under $3.00 here again. What I really don't get though is when a barrel of oil went way up in price the gas prices also went up over night. Now oil is way down and we are still not near the price before the big jump. Dale

magooch · « **Reply #9 on:** October 08, 2008, 03:09:00 AM »

Dale, I know you know what's going on; it's called bidness. As long as people will pay the price, you make your profit while you can. Is it gouging? Hell yes, but it probably isn't actionable as far as the guvmint is concerned. Still, with all its ups and downs, I would rather have a free-market system than some kind of government controlled market. And I'm certainly not inferring that the energy business is anywhere close to being free-market.

It sure makes ya feel a little cozier, though, when the price of gas is going down every day instead of up. All we can do is enjoy it--brief as it might be.

SHOOTALL · « **Reply #10 on:** October 08, 2008, 03:24:59 AM »

ansewer this - pirce of crude goes up pump gas goes up that day ! crude goes down and its weeks before pump price goes down .
at least the gas company hasn't had to be bailed out YET !

45-70.gov · « **Reply #11 on:** October 08, 2008, 05:10:29 AM »

stop the gouging and make those evil gas companies sell cheap gas to poor people
then big government can rob the evil rich to bail out the gas companies
or even socialized gas.....to each according to his needs
and from each according to his means
until every one decides to quit working and bum off of others
what others

SHOOTALL · « **Reply #12 on:** October 08, 2008, 07:20:36 AM »

It's like pro base ball they get big pay cause we pay it !

Mike Britton · « **Reply #13 on:** October 08, 2008, 12:59:20 PM »

Quote from: SHOOTALL on October 08, 2008, 07:20:36 AM

It's like pro base ball they get big pay cause we pay it !

Naw.....quit going after the strike.

no guns here · « **Reply #14 on:** October 09, 2008, 02:13:08 AM »

Paying $3.84 here in Germany. The Germans are still at $9.00 per gallon equivalent. Our gas prices only change on Friday night at midnight... it's going down again this weekend. Not sure how many cents but I'll wait until at least Saturday to fill up. Two weeks ago it was over $4.00, I think it was $4.04. Then down to $3.92 then to $3.84. I'm really hoping for about a dime off tomorrow night.

ngh

SHOOTALL · « **Reply #15 on:** October 09, 2008, 02:41:20 AM »

in Va it is under 3 bucks a galon at some outlets and no shortages .
diesel on the other hand is 3.60 - 3.80 depending on station you go to !

Singleshotsam · « **Reply #16 on:** October 09, 2008, 03:39:33 AM »

Gas is still high b/c of supply and demand. Oil maybe 50 bucks a bbl, but like GB stated, some places still don't have any to sell. When things catch up the price will reflect the cost...

Heather · « **Reply #17 on:** October 10, 2008, 06:56:40 AM »

WOW!!!! Got gas today for $3.53 a gal and there wasn't a limit! ;

Maybe our shortage is over for now.

Heather

SHOOTALL · « **Reply #18 on:** October 10, 2008, 07:56:48 AM »

hit the 2.39 at one station and 2.69 at several others . but 2.89 seems the price most places

DalesCarpentry · « **Reply #19 on:** October 10, 2008, 11:03:36 AM »

It was $3.29 this morning on the way to work. On the way home it was down to $3.19. Did you guys hear that since demand is down that OPEC is talking about cutting back on production. Could mean the price may go back up. Dale

Troyboy · « **Reply #20 on:** October 10, 2008, 02:50:25 PM »

Anybody that thinks big oil is not screwing us needs to pay attention. When so few control so much greed does become a problem. Every other industry is in the tank while they post record profits. Do the math

Troy

billy_56081 · « **Reply #21 on:** October 10, 2008, 03:45:54 PM »

2.86 here in southern MN. Still not near low enough for me.

bubba · « **Reply #22 on:** October 10, 2008, 04:14:09 PM »

I paid 3.25 tonight. It cost me 11 bucks to fill up. But of course that was my motorcycle. Fuel oil tank was filled thos week. It was still 4.05 a gallin. Go figure.

Graybeard · « **Reply #23 on:** October 11, 2008, 01:24:21 AM »

Quote from: billy_56081 on October 10, 2008, 03:45:54 PM

2.86 here in southern MN. Still not near low enough for me.

You're kidding aren't you? Has it really dropped to that level there?

I'd sure like to think it's gonna come back down to that but am having a hard time believing as it seems to never drop back to where it was before when crude oil was at a given level on the way up as it drops back down.

I have noticed prices beginning to drop here and it does seem stations are having it in stock more often now. I was told at Wal-Mart it was $3.499 yesterday and at one Chevron station I passed just up the road from me it was $3.549 I believe. That's still higher than it was before it went up I think.

mjbgalt · « **Reply #24 on:** October 11, 2008, 01:36:04 AM »

i paid $2.83 yesterday and heard of a station miles away at $2.56, not sure if that was true, it was on the radio.

we were up to $4.29 at one point, so this is a nice change.

-Matt

ms · « **Reply #25 on:** October 11, 2008, 01:44:16 AM »

299 in plymouth michigan.

RaySendero · « **Reply #26 on:** October 11, 2008, 01:51:09 AM »

Quote from: mjbgalt on October 11, 2008, 01:36:04 AM

i paid $2.83 yesterday and heard of a station miles away at $2.56, not sure if that was true, it was on the radio.

we were up to $4.29 at one point, so this is a nice change.

-Matt

It's amazing how one's perspective can change so fast!

Less than 8 yrs ago I paid $0.72 per gallon!

Yesterday = $3.15 - And I felt good about that price!

kevthebassman · « **Reply #27 on:** October 11, 2008, 02:38:43 AM »

It's 2.99 here SW of STL. I'm hearing that 2.59 is the going rate down in Springfield, MO. I filled my new Dodge truck up (35 gallon tank) for less then $100 for the first time ever.

Mike Britton · « **Reply #28 on:** October 11, 2008, 03:56:28 AM »

Quote from: kevthebassman on October 11, 2008, 02:38:43 AM

It's 2.99 here SW of STL. I'm hearing that 2.59 is the going rate down in Springfield, MO. I filled my new Dodge truck up (35 gallon tank) for less then $100 for the first time ever.

Boy I heard that !! Bought a new Suburban in January, and 25,000 miles later , I'm yet to get a full tank in before the automatic limit shuts me off.

SHOOTALL · « **Reply #29 on:** October 13, 2008, 02:09:26 AM »

hit 2.49 at a few stations over the weekend in Va.