We should realize that oil/gas prices are manipulated by a bunch of greedy people that the only thing they care about is how to make more moeny every day. For them there is no “rational markets” or “law of supply and demand”. They manipulate the prices at will. Look what the OPEC is doing by reducing the daily production. Why do they do this? the answer is simple…more money into their pockets. Why do you think Russia wants to form a similar organization for Gas?

I think we’re all so jazzed to see gas this low combined with being so stressed about the economy in general that no one is thinking about oil price accountability.

I think the price of gas was about $1.86 or less, the last time it was around or below $57

Bing,

If you look at this blog, and scroll to the prices in late Jan 06 through Apr 06, you’ll notice that the prices of a barrel of crude were similar to what they are today, and they prices for gas are similar as well (not identical, but similar).

Also, take a look at this site. For “Area 1″ select USA Average, and nothing for Area 2 and Area 3, and use a time period of 2 years, and click on the checkbox for “Show Crude Oil Price”. The resulting chart will show you that there is some correlation between the price of crude and gasoline. The two obviously don’t move in lock-step with each other, so the correlation isn’t perfect, but it does show up.

There are many charts and graphs on the correlation between crude and gasoline prices. The two move very closely together and by the way, I saw regular unleaded for $1.99 a gallon here in Texas this weekend.

Maybe the recent drop in gasoline prices was indeed a matter of supply and demand in crude. We were told that production was going at full capacity then the demand dropped. Storage of crude is expensive and dangerous.

When gas prices jump up each time there is a holiday or a hurricane makes it into the gulf, I always tend to see that as backroom price inflation. Maybe it has been pure supply and demand all along.

If you believe that, I’ll tell you another one.

Coming in to work today I saw $1.89 p/gal in a few places. I think we get most of the gas from Canada though. I don’t know if that makes a difference or not.

With our current leadership in government and free enterprise entrepreneural organizations, it’s easy to understand why widespread econmic price fluctuations from commodities to retail occcur.

The education cow’s teats nourish the likes of Mark Cuban, Martha Stewart, and Leona Helmsley.

We can fo back a little farther and mention Boesky, Livine, and even Nixon.

A little more subtle entrepreneur would John Gotti.

Would it be fair to call these individual “MARKET FORCES”?

Is there any correlation between the price of gas and your little reply icon being on horseback?

http://www.sawyerspeaks.wordpress.com

I do not care how scientific and rational the “geniuses” CEO’s and Wall Streeters want to make it look, but this is pure M A N I P U L A T I O N, and the force behind is GREED!, nothing else, nothing more, and, it is not new, it been here forever! the only problem is that we, humans, have a very short memory and attention span, but look back at history, there is nothing new under the sun, no “new” order or “new” economy,,,,,just shut up and ride the wave.

I just paid an absurd price for an airplane ticket. What is the justification for airlines to jack up ticket prices around holidays?

It certainly isn’t because gas prices spike at Christmas.

Since all the airlines (which effectively constitute a monopoly of sorts) do this, does the word “collusion” come into play?

Our complaints are short-lived, and THEY know it. We have no mechanism to fight back.

its my birthday! really it is!

yuck…i share my birthday with ted stevens

Coming in to work today I saw $1.89 p/gal in a few places. I think we get most of the gas from Canada though. I don’t know if that makes a difference or not.

Posted By Jessica, St. Cloud MN

I doubt it Jessica, we are paying around 88 cents/litre that works out to $3.33/us gal. Of course most of that is TAX used for stupid things like road repair and universal healthcare and who knows what other public benefit.

Funny thing is; not to many Canucks Yoick/whine at paying that price, perhaps we have been hit over the head so many times we enjoy the musical beat from it.

Bing,
I’ll be sure to send you a tinfoil helmet for the holidays.

The real truth is far scarier. The truth is that no one is in charge. Save yourself! No else is going to do it for you – certainly not the central planners in the government.

In Oct 2005, Oil was at about $55 a gallon and gasoline averaged about $2.89. In Jan 2006, $55 / $2.36. Apr 2006, $56 / $2.63.

Price data is available at the Department of Energy website at:

http://www.eia.doe.gov/oil_gas/petroleum/data_publications/wrgp/mogas_history.html

http://www.eia.doe.gov/oil_gas/petroleum/info_glance/petroleum.html

Oil and gasoline have different price elasticities, so although there will be correlations between movements in prices, you wll not find that they move in lock-step. There are seasonal demand factors that impact pricing, and not all crude oil is made into gasoline. Additionally, the price ratio between the two will be impacted by refining costs; low crude prices drive lower quality crude off the market, but high prices bring poor quality crude into the market, increasing refining costs, which are passed on to end products.

(Lower quality crude contains more impurities, such as higher sulfer content, which increases the cost of making gasoline from crude … this recent bubble never brought that price factor to the pump, as crude prices did not stay high long enough … instead, refiners took it on the chin).

Gasoline is indeed cheaper than is typical for oil being at $55 a barrel, but we’re in a period of declining oil prices, not rising ones. The present price ratio is more in line with $25/barrel oil … so one would conclude that gasoline prices will rebound (as winter fuel demands increase), or oil prices will continue downward … place your bets in the commodities market if you are so inclined …

One could also toss the conspiracy theory on the table and suggest that the spike in oil prices was orchestrated in a successful attempt to influence the outcome of the US presidential election.