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Old 05-13-2013, 11:05 AM
 
Location: From the Middle East of the USA
1,082 posts, read 797,147 times
Reputation: 1168

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As of today, gas prices has dropped somewhat. I heard that the economy in China has slowed, and economists are predicting a slow down for the next quarter. Would lower gas prices be bad or have an adverse affect on the economy if they could dip below a $2.50 dollar average?

I forget to think "globally" sometimes when I see a price for something I want to purchase. However, I do miss cheap gas, but would not want to be without a job in the meantime.
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Old 05-13-2013, 02:54 PM
 
532 posts, read 954,879 times
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Gas prices..."has"? I'm not sure Asia has much affect on gas prices; I think that's more a function of the Middle East, Saudi especially.
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Old 05-13-2013, 03:30 PM
 
Location: Waterworld
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I do think that right now with gas prices the way they are, even though people complain they are high, that we are at a sweet spot. If it drops below $2.50, I think that it will cause a slow down in the O&G industry and you could see some layoffs which will spread to other industries.

But that is just my opinion.
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Old 05-13-2013, 08:38 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
33,270 posts, read 60,487,335 times
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Huh? Our prices went up 10 cents a gallon today, to $4.04. If gas did drop, and the other fuels, people would go back to taking road trips, longer shopping trips, and airfares could come down. It would help the economy. The oil companies will be making their profit one way or another, so yes, they might have some layoffs but everyone else would be better off.
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Old 05-17-2013, 07:28 AM
 
28,900 posts, read 48,778,953 times
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Well, gas prices are relatively cheap when compared to inflation, and certainly cheaper than what you'll find elsewhere in the world.

That being said, I think that China will have next to no affect on U.S. gas prices, given how domestic energy production is surging. The only thing that's really keep gas prices at the current level in this country is refinery capacity.
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Old 05-17-2013, 07:37 AM
 
13,471 posts, read 18,537,695 times
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Quote:
Originally Posted by hickoryfan View Post
As of today, gas prices has dropped somewhat. I heard that the economy in China has slowed, and economists are predicting a slow down for the next quarter. Would lower gas prices be bad or have an adverse affect on the economy if they could dip below a $2.50 dollar average?

I forget to think "globally" sometimes when I see a price for something I want to purchase. However, I do miss cheap gas, but would not want to be without a job in the meantime.

Just another pointless thread. Has no consequence what WE think. What THEY do - yes.
If price of gas not so long ago was 6 cents a gallon in Venezuela, all the $4 pricing in oil rich country like USA is nothing but gauging.

Be well. Keep doing idle discussions.
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Old 05-17-2013, 07:58 AM
 
28,900 posts, read 48,778,953 times
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Quote:
Originally Posted by ukrkoz View Post
Just another pointless thread. Has no consequence what WE think. What THEY do - yes.
If price of gas not so long ago was 6 cents a gallon in Venezuela, all the $4 pricing in oil rich country like USA is nothing but gauging.

Be well. Keep doing idle discussions.
Well, Venezuela keeps gas prices there well below what it actually costs to produce the gasoline, so that has zero bearing on actual pricing here in the United States. Second, 40% of all oil we use is imported (Mercifully, this number should be changing over the next several years) so we really don't have control over the costs of materials. Third, until we loosen regulations enough to allow a substantial increase in refining capacity, there will be enough scarcity to drive up costs. Fourth, EPA and local dictates regarding formulation can vary substantially from region to region. Finally, both Federal and State governments add roughly fifty cents to the price of every gallon.

Here's an interesting web site that explains why costs can vary so much from region to region: http://blog.gasbuddy.com/posts/Midwe...0279-1791.aspx
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Old 05-17-2013, 12:00 PM
 
Location: From the Middle East of the USA
1,082 posts, read 797,147 times
Reputation: 1168
Quote:
Originally Posted by cpg35223 View Post
Well, Venezuela keeps gas prices there well below what it actually costs to produce the gasoline, so that has zero bearing on actual pricing here in the United States. Second, 40% of all oil we use is imported (Mercifully, this number should be changing over the next several years) so we really don't have control over the costs of materials. Third, until we loosen regulations enough to allow a substantial increase in refining capacity, there will be enough scarcity to drive up costs. Fourth, EPA and local dictates regarding formulation can vary substantially from region to region. Finally, both Federal and State governments add roughly fifty cents to the price of every gallon.

Here's an interesting web site that explains why costs can vary so much from region to region: Midwest getting pummeled with price spikes, Minnesota sets records - Gasbuddy Gas Prices
Well said
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