Gas may be headed back near $2: Industry analyst sees prices between $2 and $2.50 by Thanksgiving
Hey, don’t get me wrong; I have no problem with the idea of paying lower prices for gasoline. Less is better, no? Unfortunately, I’m just cynical enough to think that perhaps the coincidence here is just a wee bit too much to ignore. There’s been some speculation about the possibility of an “October Surprise” prior to the election, and while I don’t know that the gradual decrease in the price of gasoline might fit the bill, you can bet the Our Glorious and Benevolent Leader will milk a significant price drop for any possible political advantage that might be gleaned from it. As if anything he has done or will do will have any impact at all on the price at the pump.
Hey, if they’ll lie to use about WMDs in Iraq, and if they’ll propagandize the American sheeple into thinking that Iraq was involved in 9.11, is it really a stretch to think that they’ll take credit for a drop in the price of gasoline? If you think it is, you might want to consider removing your anterior from your posterior.
How would "they" go about rigging the price of gasoline? What sort of integrated computer system would it take to coordinate price variances at thousands of gas stations all across the country, each with it's own market peculiarities? And how many conspiratorial employees-- none of whom would rat out to the Feds for a RICO damages reward?
And who are "they" anyway? The oil companies? Hey, the price of crude oil has gone up fivefold since the late 1990s, while gasoline has barely tripled.
If there is a conspiracy to drive up gasoline prices, it sure is an ineffective one.
Besides which, given that increased prices tend to beckon increased supply, it should come as no surprise that domestic crude oil inventories are pretty much at an all time high. So, with all that oil on hand, what might explain the high crude prices?
Well, maybe it is political uncertainty in the Middle East. So, "speculators" buy up oil and store it, thinking supplies from the Persian Gulf might be interrupted. Then, a cease fire breaks out in Lebanon, and crude supplies are not interrupted and thus prices drop.
And note, gasoline prices have dropped precipitously since the announcement of the Lebanon cease-fire. That, coupled with the seasonal drop in gasoline consumption mean the price of gasoline is likely to drop even further.
No magic, just free markets.
But don't let logic and facts interrupt your conspiracy theory. Enjoy your smoke.
Conspiracy theory? Nah...just the experience of the past five-plus years, thank you very much. Yes, I understand free market theory, but I also understand that there is little this Administration will not do to propagandize the American sheeple and inoculate them from the truth. If you can't see that, there's nothing I'm going to be able to do that will change your mind.
Thanks for your two cents....
Well, while it's not *that* crazy to think that this failed oilman preznit and his has-been daddy could pursuade/pay some oil cronies to throw an(other) election, I'll go as far as to agree that it's not even an incipient consipiracy until gasoline prices actually go down in the next two months--which is sure not guaranteed. There's no point in crying Conspiracy based merely on someone's wild-hair guess about gas prices.
Agreed it's just silly to pretend that oil and gas markets are free markets--they never have been free markets. It's where the word 'cartel' got popularized, for heaven's sakes. Can you say "depletion allowance"? "Federal leases"? Billy Sol Estes? Teapot Dome? UN Oil-for food? And let's remember Enron didn't steal their billions while trading baked goods. Oil has always been a filthy business, may always be.
But even so--Jack, you did kind of step in it. Let's don't cherry-pick random passages that support our position--that's the Bible-folks' approach.
If prices do continue to drop you can bet the republicans will use it to their advantage, just as the democrats used the high prices to theirs. So in this regard, Jack is spot on.
Neither argument has factual basis, but hey, they're politicians -- Turning truth into propaganda is what they do best.
Conspiracy or not, American oil companies have made record profits in recent months. Why that profit couldn't have been reduced by just a teeny-weensy bit to lower pump prices is the part I don't get. Oh - it's because companies like BP were putting so much money into maintenance - like the line in Alaska they hadn't sent a pig through in what, 8 or ten years? And oh yes, wasn't it just a few short weeks ago analysts were predicting $4 gallon gas as a result of the decrease in supply caused by BP's mismanagement? What happened to that decrease in supply and its effect on the market? They think we all have short memories. Hell yes, I believe in conspiracies.
Oil Co. profits are about a dime a gallon. Federal taxes are 18.4 cents. States tack on another 15-25 cents per gallon (31 cents in New York and Pennsylvania.)
Bob - you are a smarter man than to believe that. I've read sources, probably as good as the ones you apparently read, suggesting that the price of crude, refining and distribution accounts for less than one half of the pump price. That would amount, today, to about $1.30 per gal. Even if taxes are 43 cents or so that still leaves a hefty sum being returned to the oil companies. What else could possibly explain such huge increases in their profits? Did they suddenly have a burst in personal productivity?