Why is gas all of a sudden so cheap?

[ahsia]

Not that I am complaining, but it is crazy. Gas here in Los Angeles is $0.95 for 87, and only $1.15 for 92. Just like 6 months ago, it was like $1.60-$1.80. Can someone explain why the suddent drop in price?

 

[ava]

I do not know but i would LOVE to know as well and just pray that they keep it this low, my car loves me when i keep it full on gas!

Ava

 

[Ionizer86]

You guys in LA are lucky. In San Diego, prices are lower than before, but they're still around $1.15 for 87 fuel.

An editorial in the paper said that the price of fuel has little (if anything) to do with OPEC production. Instead, companies randomly mess with prices to get customers used to paying a certain amount for fuel, and they drop them to let customers get used to lower prices.

 

[aphex]

EDIT: Im an idiot, ignore me... 🙂

 

[woodly6]

Who cares buy it up while you can!😀

 

[Hamburgerpimp]

They are pumping the hell out of Siberia, now that it's started, they can't cut back because of the cold and other conditions.

 

[Brutuskend]

Yup. Thats right.
We are buying it from Russia.

Who would have believed THAT 20 years ago??

 

[Kadarin]

Much better to buy it from Russia and help support their efforts to build and maintain a stable democracy, as opposed to buying it from Saudi Arabia and helping to support Islamic fundamentalism.

-j

 

[MaxDepth]

you guys just caught the price break, now. i'm at my folks in KY and I just saw it jump from.96 to 1.29 overnight. geez, and now it is snowing. I hate drving in the snow; not really for myself but for those knuckleheads who believe their antilock brakes help them with snow/ice...

 

[Lucky]

gas is going up in price right now, is it not?

 

[VirusDub]

I found it for $1.05 by my house. Combined with my efficient car, I can drive over 160 miles on $6 worth of gas.

 

[Cheese78CA]

Yep, gas prices should be going up as OPEC will be cutting crude oil production by 6%.

 

[hans007]

OPEC wanted to cut crude production, but russia didnt want to cut back. also there is a new pipeline that opened coming out of russia or something.

 

[Jfur]

we here in the state of Hawaii are subsidizing the rest of the nation?

 

[Jerboy]

If the gas price goes down to fifty cents a gallon, people would just be buying SUV's that gets 9mpg

 

[thomsbrain]

i'm sure the recession has nothing to do with it. 😕:Q😕

 

[PsychoAndy]

Let's utilize what we learned in Econ.

Now, the demand was say, at 10 million barrels a day, for the US, and the supply was 10 million, and the cost was 1.50 a gallon. Then, 9-11 happens, oil demand decreases (planes on the ground, noone wants to go anywhere, etc, etc), and supply is still at 10 million barrels. Suddenly there's a surplus of oil, and the market clearing price (price where demand meets supply, previously at 1.50) drops lower and lower. Now, when supply is lowered along with demand, or if demand goes back up, the price rises. Simple as that.

 

[thomsbrain]

<< Let's utilize what we learned in Econ.

Now, the demand was say, at 10 million barrels a day, for the US, and the supply was 10 million, and the cost was 1.50 a gallon. Then, 9-11 happens, oil demand decreases (planes on the ground, noone wants to go anywhere, etc, etc), and supply is still at 10 million barrels. Suddenly there's a surplus of oil, and the market clearing price (price where demand meets supply, previously at 1.50) drops lower and lower. Now, when supply is lowered along with demand, or if demand goes back up, the price rises. Simple as that. >>



exactly!