Not that I am at all complaining, but the gas prices around my home have dropped almost 75 cents a gallon in the past couple of weeks. Considering the economy is in such a state of distress, why are gas prices dropping so drastically?
by 
Cyndi Ninja
ANSWERS: 15
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Without doing any research, I'd say that our economic crisis is lowering the amount of money that people are willing or able to spend on gas so that the supply may already be greater than the demand.
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The prices were overinflated before. They are moving to a more reasonable level.
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oil prices have also surprisingly dropped. because of our recent downfall on wall street, the dollar is worth less and less. so other countries are trying to work with us to help stabilize.
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That's because the Arab countries that destroyed our economy realize that too much greed gets you nothing. When 2/3 of our country is homeless, there will finally be enough crude produced in our country for everyone.
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The oil companies who are in bed with the GOP drop prices near the election to get voters to think the Republicans are doing some good. After the election they will surely rise again.
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They finally realized that with the economy people are going to consume less at such high prices. Lowering the prices = more consumption. Their plan to squeeze us till it hurt worked, but now it's backfiring.
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I've noticed the same thing around where I live, and here, it is typical this time of year. People travel more in the summer, so people charge more for gas. Once summer is over, the prices go back down. I don't know if that's how it works where you live, but I am not surprised when I see it.
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My theory is they finally figured out that if they keep robbing us at the previous rate we would go totally broke, collaspe, die and be no use to them as future cash cows.
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I think it's the change in season. Prices go up in the summer time, just like they do on Fridays for the weekend. Now that it's fall, they're dropping. But .75 cents? That is a big drop. It's actually dropped about .85 cents by my place.
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Its the beginning of the recession, sorry to say. Inflation slows down because nobody's buying, then the price wars start and food and other essentials get cheaper, but big companies make internal cuts to finance this and small companies just go under and loads of people end up unemployed. At least that's what my BBC TV Breakfast program just said.
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The price of oil has dropped drastically. Last I heard it was well under $90/barrel. A few months ago we were flirting with $150/barrel. As the economy tanks, everything drops, except gold, which seems to be doing well. Happy Friday! :) Also, people are buying less because they can't afford it..they have no jobs. Many are using alternate forms of transportation..they are cutting back.
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We have had oil/fuel issues in the past which has hit the economy in such a manner (only not as bad as this time). during the end of presidential term does it seem to decline. I predict a slow but steady decline while the economy tries to come back. I honestly feel that we are on our way back up.
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I asked a few coworkers this exact question today after seeing the gas prices drop twenty cents in 4 hours. It is good to know that I am not alone in wondering. I first thought that it was a supply/demand issue, but I really have no idea!
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Some reasons I think it is dropping: 1) Less consumption of oil. I think many are rethinking how much they drive their cars. Also, the peak summer driving season is over. 2) There is more movement on domestic drilling. Congress let the ban on off shore drilling expire recently. Most americans favor more domestic production of energy in all forms--oil, solar, wind, nuclear, etc. 3) Brazil just discovered 4 billion barrels of light sweet crude just off of their coast. They are beginning to drill now. In all, more supply, less demand=lower prices.
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oil is traded on the stock market, which is tanking. What confuses me is diesel price have dropped from $5 per gal to $3.50 or so, but fuel oil is going through the roof?
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