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Why do these easily solvable mysteries always happen in election years?
Actually it doesn't. The two largest peaks did happen in election years, but mostly all the others did not. In other years it kept going up until it adversely affected the stock markets and came rolling down until the stock market reeled and started going back up again. Upwards of 2000 it was pretty stable hovering around $1.10. But the peak months thst it hit a ceiling and than tumbling down were:10/2000 @ 1.61, 5/2001 @ 1.82, 11/2002 @ 1.51, 4/2003 @ 1.84, 10/2004 @ 2.15, 9/2005 @ 3.14, 7/2006 @ 3.12, 5/2007 @ 3.16, 7/2008 @ 4.25, 5/2009 @ 2.78, 5/2010 @ 2.98. The Bush Admin had the highest national avg (w/o taxes) than any year under Obama.
I can remember complaining about Bill Clintons final months in office when gasoline as climbing to $ 2.00 a gallon. I can't think it should be more than about $ 2.25 a gallon right now, tops, considering demand and supply. Food prices keep climbing and they had gonbe up supposedly due to fuel costs. I don't see them coming down.
Enjoy the dip in gas prices even if it isn't near as big as what it should be. One hurricane in the gulf or any shooting in the middle east and it will go right back immediately even if supply isn't affected.
It's going to get much worse this summer with the heat and drought issues drastically reducing crop yields, leading to much higher commodity prices for corn, soybeans, wheat, and everything else. With temperatures between 100-115F for highs you can't crops very well at all.
Brent Crude is a major trading classification of sweet light crude oil comprising Brent Blend, Forties Blend, Oseberg and Ekofisk crudes.
West Texas Intermediate crude oil, which had been selling for $105 a barrel at the end of March, fell to $80 a barrel last week, while Brent has come from $125 down to near $90. These price declines will translate into substantial savings for U.S. consumers in the weeks ahead.
With Brent on Friday at $91.50 and an average retail gasoline price about $3.47, we'd thus expect gasoline prices to come down another 35 cents a gallon or so from where they were on Friday. Historically those adjustments usually come pretty quickly. For example, last December U.S. gasoline prices temporarily fell about 25 cents/gallon below the long-run relation, but by March they were right back on track.
So should we be celebrating? I'm afraid not. The primary reason that oil prices have come down is because of growing signs of weakness in the world economy.
The intercept (0.84) captures an average state and federal tax of 50 cents per gallon plus a bit over 30 cents in markups and other costs.
Heres a little bit of real information.
BTW, Buccees' in New Braunfels is at 2.99$
All of this is true but it's probably a necessary evil to recognize the effect of hedge betting in oil futures. Hedgers are typically producers and consumers of the physical commodity who use futures markets to offset price risk. By contrast,noncommercial traders seek profits by taking market positions to gain from changes in the commodity price, but are not involved in the physical receipt/delivery of the commodity. These financial players—generally referred to as “speculators”—have come to account for a significantly greater proportion of activity in the U.S. oil futures markets than physical players in
the oil industry in recent years.
That said, the peaks in Q1 2010 and Q1 2011 were largely precipitated through speculations run through London brokerages...yes, through banks hedging in partial oil future derivatives but also production side hedges and consumer speculators acting on the momentum of the hyperbolic media reports of various world events.
Just a guess but I'd say that prices will spike over July 4th, cool off to just above $3/gal nationally and drastically spike late August predicated on some bull**** military event because, as several have said, the host nations of oil companies aren't particularly fond of the President. On the other hand, if Middle east ever figures out that Americans have the perplexing habit of voting in a President of one party and a Congress of the other they might prefer President Obama retain his position in favor of a majority in the Legislature.
I can remember complaining about Bill Clintons final months in office when gasoline as climbing to $ 2.00 a gallon. I can't think it should be more than about $ 2.25 a gallon right now, tops, considering demand and supply. Food prices keep climbing and they had gonbe up supposedly due to fuel costs. I don't see them coming down.
Enjoy the dip in gas prices even if it isn't near as big as what it should be. One hurricane in the gulf or any shooting in the middle east and it will go right back immediately even if supply isn't affected.
If supply and demand were the only factors in this, then we probably would be looking at $2.25 or $2.50 per gallon gas. There is a glut of supply and weak demand out there worldwide. The problem is we now have market speculators out there- huge numbers of them- who have added almost another 50% to what we pay for gas at any given time. If we could get them out of the system I truly believe gas/oil prices would be much more stable, only spiking when true supply issues arise as was always the case before this regulation on speculation was removed in 2001.
after some time in the 2's, most of the stations here (started around the holiday, go figure) are back just over 3 per gallon now. Still better then other states, but damn really makes one wonder on the entire pricing structures that are used lol
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