Gasoline $2 a gallon?

ScottFJ40 · 08-30-2006, 08:03 AM

by Thanksgiving?

http://www.usatoday.com/money/indust...ice-usat_x.htm

Gasoline prices could keep falling
Updated 8/30/2006 9:05 AM ET
By James R. Healey, USA TODAY
Gasoline prices are falling fast and could keep dropping for months.

"The only place they have to go is down," says Fred Rozell, gasoline analyst at the Oil Price Information Service (OPIS). "We'll be closer to $2 than $3 come Thanksgiving."

Travel organization AAA foresees prices 10 cents a gallon lower by the end of next week. It reported a nationwide average of $2.84 Tuesday, the lowest since April 20.

It's good news for consumers and the economy. Continued lower prices "may act like a tax cut" and stimulate spending, says Richard DeKaser, chief economist at National City in Cleveland. He calculates that higher energy prices the first six months cut growth of consumer spending 1 percentage point.

The U.S. average for a gallon of regular peaked this year at $3.036 Aug. 10, according to OPIS/AAA daily surveys. That's slightly under the high of $3.057 Sept. 5, a week after Hurricane Katrina battered petroleum production in the Gulf of Mexico and caused fears of fuel shortages.

OPIS' Rozell figures prices will jump again next spring.

Behind the current drop:

•The end of summer. Driving slows, reducing demand for gasoline. And federal requirements for clean air, summer-blend gasoline end next month, making gasoline cheaper to refine and import.

•Sluggish demand. Gasoline use in the first eight months of the year is up 1% vs. a year ago, less than the 1.5% to 2% growth that's typical, says Michael Morris, analyst at the U.S. Energy Information Administration. "Wholesalers are trying to get rid of product. The growth in demand for gasoline has really tapered off," he says.

Wholesale prices are falling faster than retail gasoline prices, meaning stations are making more money than when prices were $3. Wholesale prices Tuesday ranged from $1.77 to $1.79 a gallon, well below the $2-plus prices typical until recently.

•Petroleum traders, worried that prices are too high to last, are selling their holdings. That pushes prices down. They also believe hurricanes won't disrupt Gulf of Mexico production, OPIS senior analyst Tom Kloza says.

Crude oil, which accounts for roughly half the price of gasoline, ended New York trading Tuesday down 90 cents, at $69.71 a barrel. That's the first time it's closed at less than $70 since May 4.

Contributing: Chris Woodyard, Barbara Hagenbaugh

SanDiegoCJ · 08-30-2006, 08:07 AM

I was seeing gas right near $3.00/gal on my trip from San Diego to Donner last
weekend, and the diesel was averaging about $3.20/gal. That's down about
$0.40/gal from a month ago. Made the fuel bill for the trip a bit easier to swallow.

ScottFJ40 · 08-30-2006, 08:07 AM

Quote:

Originally Posted by SanDiegoCJ

I was seeing gas right near $3.00/gal on my trip from San Diego to Donner last
weekend, and the diesel was averaging about $3.20/gal. That's down about
$0.40/gal from a month ago. Made the fuel bill for the trip a bit easier to swallow.

Let's hope this trend continues.

fullygruntled · 08-30-2006, 08:12 AM

Don't worry, some fly will fart on a freighter in the Straits of Hormuz and the fear will send crude prices rocketing skyward again.

FreakAccident · 08-30-2006, 08:14 AM

$2.56 for regular unleaded this morning on my way to work. Lowest in a very long time.

mantis · 08-30-2006, 08:14 AM

Hurricane season is finally swinging into full effect...

davidbrady · 08-30-2006, 08:16 AM

yep, filled up this morning at $2.58

davidbrady · 08-30-2006, 08:16 AM

yep, filled up this morning at $2.50, down about .30 from a month ago

misterfubar · 08-30-2006, 08:19 AM

So prices drop because of lower demand. Cheaper fuel causes a rise in SUV sales. We get more assholes driving 13 MPG SUV's as commuter cars. More SUV's on the road raises demand for gas. Higher demand for gas means prices start to go back up. Rising fuel costs means people start selling off the SUV's they just bought in favor of more fuel effecient econo boxs. The market gets flooded with used SUV's and I can buy a low mileage one for pretty cheap.

Sound about right?

FSJ Man · 08-30-2006, 08:23 AM

2.67 for supreme Saturday.

Hardcore4x4 · 08-30-2006, 08:23 AM

WTF?? Gas went up 5 cent here last week and is back up to $2.95 - $2.99 a gallon again.
Gas jumped to $2.99 here in Denver when BP shut down their pipeline and also the same time Isreal invaded Lebonon. It was $2.65 before then. It dropped 5 cents 2 weeks ago and then went right back up to $2.99 again last Friday. Barrel of oil has dropped back below $70 also. It maybe the Labor day weekend coming but I just don't see it falling below ~$2.55 this winter here in Colorado. Oil companies just want to keep making record profits cause they know the government will do nothing.

fullygruntled · 08-30-2006, 08:27 AM

Quote:

Originally Posted by Hardcore4x4

Oil companies just want to keep making record profits cause they know the government will do nothing.

uh... no, oil companies want to keep making record profits because they're a company in a capitalist economy.

Invest in oil stocks and share in the wealth.

Bubba Ray Boudreaux · 08-30-2006, 08:31 AM

I saw a drop of $ 0.14 at a station yesterday from the time I went to work to the time I was coming home about 10 hours later..................

PTSchram · 08-30-2006, 08:31 AM

Quote:

Originally Posted by fullygruntled

Invest in oil stocks and share in the wealth.

Halliburton!!!

fullygruntled · 08-30-2006, 08:33 AM

Quote:

Originally Posted by PTSchram

Halliburton!!!

unfortunately, they aren't an oil company.

at least that's what they'd like us to believe.

61scout80 · 08-30-2006, 08:36 AM

what do you think is a fair price for fuel? I'd like to think between $1.50-$2.00 a gallon is fair, how about you?

Bones · 08-30-2006, 08:36 AM

I am going to fill up tonight for the weeknd road trip just incase it goes skyward like the locals are saying. $2.58 here now I think. $2 would be fantastic.

Bubba Ray Boudreaux · 08-30-2006, 08:39 AM

Quote:

Originally Posted by 61scout80

what do you think is a fair price for fuel? I'd like to think between $1.50-$2.00 a gallon is fair, how about you?

$ 0.999 a gallon.......................

xj4life · 08-30-2006, 08:41 AM

I just want to know when diesel is coming down

fullygruntled · 08-30-2006, 08:43 AM

Quote:

Originally Posted by 61scout80

what do you think is a fair price for fuel? I'd like to think between $1.50-$2.00 a gallon is fair, how about you?

I think it would be fair of you to sell me all your stuff for $76.24. Any higher would be an outrageous crime of greed and avarice worthy of a public flogging and pillory.

fullygruntled · 08-30-2006, 08:44 AM

Quote:

Originally Posted by xj4life

I just want to know when diesel is coming down

Is Diesel tripping on the shrooms again?

Give him another three days or so to sober up.

Spawn_X · 08-30-2006, 08:48 AM

Quote:

Originally Posted by fullygruntled

Is Diesel tripping on the shrooms again?

Give him another three days or so to sober up.

PTSchram · 08-30-2006, 08:54 AM

Quote:

Originally Posted by fullygruntled

unfortunately, they aren't an oil company.

at least that's what they'd like us to believe.

No, but they are the largest oil exploration, logistics and well development company. Can't just invest in the main companies, just as much to be made in ancillary support companies.

61scout80 · 08-30-2006, 08:55 AM

Quote:

Originally Posted by fullygruntled

I think it would be fair of you to sell me all your stuff for $76.24. Any higher would be an outrageous crime of greed and avarice worthy of a public flogging and pillory.

What are you getting at?

fullygruntled · 08-30-2006, 08:55 AM

Quote:

Originally Posted by 61scout80

What are you getting at?

I need a dollar.

08-30-2006, 08:03 AM	#1
ScottFJ40 Zeus of the Sluice Join Date: Apr 2002 Member # 11268 Location: Planet Earth Posts: 2,916	Gasoline $2 a gallon? by Thanksgiving? http://www.usatoday.com/money/indust...ice-usat_x.htm Gasoline prices could keep falling Updated 8/30/2006 9:05 AM ET By James R. Healey, USA TODAY Gasoline prices are falling fast and could keep dropping for months. "The only place they have to go is down," says Fred Rozell, gasoline analyst at the Oil Price Information Service (OPIS). "We'll be closer to $2 than $3 come Thanksgiving." Travel organization AAA foresees prices 10 cents a gallon lower by the end of next week. It reported a nationwide average of $2.84 Tuesday, the lowest since April 20. It's good news for consumers and the economy. Continued lower prices "may act like a tax cut" and stimulate spending, says Richard DeKaser, chief economist at National City in Cleveland. He calculates that higher energy prices the first six months cut growth of consumer spending 1 percentage point. The U.S. average for a gallon of regular peaked this year at $3.036 Aug. 10, according to OPIS/AAA daily surveys. That's slightly under the high of $3.057 Sept. 5, a week after Hurricane Katrina battered petroleum production in the Gulf of Mexico and caused fears of fuel shortages. OPIS' Rozell figures prices will jump again next spring. Behind the current drop: •The end of summer. Driving slows, reducing demand for gasoline. And federal requirements for clean air, summer-blend gasoline end next month, making gasoline cheaper to refine and import. •Sluggish demand. Gasoline use in the first eight months of the year is up 1% vs. a year ago, less than the 1.5% to 2% growth that's typical, says Michael Morris, analyst at the U.S. Energy Information Administration. "Wholesalers are trying to get rid of product. The growth in demand for gasoline has really tapered off," he says. Wholesale prices are falling faster than retail gasoline prices, meaning stations are making more money than when prices were $3. Wholesale prices Tuesday ranged from $1.77 to $1.79 a gallon, well below the $2-plus prices typical until recently. •Petroleum traders, worried that prices are too high to last, are selling their holdings. That pushes prices down. They also believe hurricanes won't disrupt Gulf of Mexico production, OPIS senior analyst Tom Kloza says. Crude oil, which accounts for roughly half the price of gasoline, ended New York trading Tuesday down 90 cents, at $69.71 a barrel. That's the first time it's closed at less than $70 since May 4. Contributing: Chris Woodyard, Barbara Hagenbaugh __________________ "What do you mean, I ain't kind? I'm just not your kind." Help Mason! Help Zach and Alec!

08-30-2006, 08:12 AM	#4
fullygruntled Registered User Join Date: Jan 2002 Member # 9614 Location: Charlottesville, VA Posts: 932	Don't worry, some fly will fart on a freighter in the Straits of Hormuz and the fear will send crude prices rocketing skyward again. __________________ [url="http://www.pirate4x4.com/forum/showthread.php?p=10154905#post10154905"]Trading stuff[/url]

08-30-2006, 08:14 AM	#6
mantis Registered User Join Date: Aug 2002 Member # 13322 Location: Sugar Land, TX Posts: 1,523	Hurricane season is finally swinging into full effect... __________________ [URL="http://www.wunderground.com/swf/Rapid_Fire.swf?units=both&station=KTXSUGAR4"]My back yard weather[/URL] :cookie:

08-30-2006, 08:23 AM	#10
FSJ Man Registered User Join Date: Nov 2003 Member # 24027 Location: San Angelo, Tx Posts: 93	2.67 for supreme Saturday. __________________ [COLOR="Lime"][SIZE="4"]Greater love hath no man than this, that a man lay down his life for his friends. John 15:13[/SIZE][/COLOR] [COLOR="Red"][SIZE="4"]R.I.P. 951 [/SIZE][/COLOR]

08-30-2006, 08:23 AM	#11
Hardcore4x4 Registered User Join Date: Dec 2003 Member # 24910 Location: Denver, Colorado Posts: 85	WTF?? Gas went up 5 cent here last week and is back up to $2.95 - $2.99 a gallon again. Gas jumped to $2.99 here in Denver when BP shut down their pipeline and also the same time Isreal invaded Lebonon. It was $2.65 before then. It dropped 5 cents 2 weeks ago and then went right back up to $2.99 again last Friday. Barrel of oil has dropped back below $70 also. It maybe the Labor day weekend coming but I just don't see it falling below ~$2.55 this winter here in Colorado. Oil companies just want to keep making record profits cause they know the government will do nothing. __________________ [b][COLOR=Red]I made my comments and more comments to your comments and this comment to your last comment. If you have any more comments to make about this comment that I made on all your comments including the last comment about the previous comments then don’t bother cos the only thing left to say is no comment[/COLOR][/b]

08-30-2006, 08:14 AM	#5
FreakAccident Registered User Join Date: Mar 2001 Member # 3553 Location: Indianapolis, IN USA Posts: 1,090	$2.56 for regular unleaded this morning on my way to work. Lowest in a very long time.

08-30-2006, 08:16 AM	#7
davidbrady Registered User Join Date: May 2004 Member # 31397 Location: Detroit Posts: 9	yep, filled up this morning at $2.58

08-30-2006, 08:19 AM	#9
misterfubar Mazungo Join Date: Jan 2006 Member # 65026 Location: WIMY Posts: 1,866 Blog Entries: 1	So prices drop because of lower demand. Cheaper fuel causes a rise in SUV sales. We get more assholes driving 13 MPG SUV's as commuter cars. More SUV's on the road raises demand for gas. Higher demand for gas means prices start to go back up. Rising fuel costs means people start selling off the SUV's they just bought in favor of more fuel effecient econo boxs. The market gets flooded with used SUV's and I can buy a low mileage one for pretty cheap. Sound about right?

08-30-2006, 08:36 AM	#16
61scout80 something witty! Join Date: Jan 2003 Member # 16722 Location: Maricopa, AZ (PHX) Posts: 965	what do you think is a fair price for fuel? I'd like to think between $1.50-$2.00 a gallon is fair, how about you?

08-30-2006, 08:36 AM	#17
Bones Registered User Join Date: Jan 2001 Member # 3007 Location: Cedar Rapids, Ia Posts: 8,419	I am going to fill up tonight for the weeknd road trip just incase it goes skyward like the locals are saying. $2.58 here now I think. $2 would be fantastic.

08-30-2006, 08:41 AM	#19
xj4life Wheeler Join Date: Nov 2004 Member # 38564 Location: Laporte, IN Posts: 165	I just want to know when diesel is coming down __________________ *BLACK BOX FABRICATION: OFFROAD BUMPERS AND MUCH MORE JEEPERZ CREEPERZ*: COMPLETE LINE OF OFF ROAD PARTS AND ACCESSORIES FOR YOUR VEHICLE

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