The cause is two-fold, he said: the price of oil has fallen sharply recently due to over-production in Saudi Arabia and falling demand due to Europe’s economic slowdown is also a factor, said Verleger.I filled up yesterday at $3.36, down about 15% from $3.90 back in March. If it continues, it will boost the economy by freeing up money for discretionary spending. And it would be good news for someone's re-election bid...
“Saudia Arabia really runs the oil market ... and the Saudis right now have several reasons for essentially overproducing, or producing more than the market needs, and pushing prices down,” said Verleger.
25 June 2012
Gasoline prices could drop to $2.50/gallon
One man's opinion, as expressed by an energy analyst speaking on Bloomberg TV.
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I live in Oregon, which has some of the highest gas prices in the nation for some reason. Last week I filled up for $4.16/gallon, and yesterday the same gas at the same station was $4.06. If gasoline gets down to $2.50 here, you'll see people filling 55-gallon drums with gas to store in the garage.
ReplyDeleteI live in the UK. Yesterday I filled up at the cheapest place for 50 miles at £1.35/litre.
ReplyDeleteI believe this equals US$7.96/US gallon.
I would LOVE for fuel to be as cheap as you guys get it!
Gasoline prices are on the rise here in Brazil, even though the country produces through a state-owned company just enough to provide for internal consumption. Actually, we have the most expensive fuel prices in America. During the Rio +20 meeting, the best preocupation I saw in the national debate was not how to drop prices, but how to use the profits of said company to fund research and development for clean energy.
DeleteAnd I would love to live somewhere with the same sort of mass-transit systems you have in the UK and Europe!
DeleteWell we could and should have them in the U.S. if certain lobbies and politicians weren't holding us back from joining the rest of the first world.
DeleteJuly 7 2012 and here in Winnipeg Manitoba Canada the price of gas is 1.21/litre and we are being told that it will rise before it falls!
DeleteFunny how the same pundits who back in March were declaring the rising fuel prices to be a sign of Obama's failure aren't now singing his praises.
ReplyDeleteI'm curious as to what Obama has done to lower fuel prices.
DeleteNothing, just as rising prices were not his fault.
DeleteAnd incidentally, while the Republicans during the 2008 campaign chanted "Drill Baby, Drill", oil well drilling under Democrat Obama is HIGHER than under Republican Bush.
Another canard is that allowing new drilling projects to go ahead would lead to quickly lowered gas prices, and that they can just get off the ground running without years of work beforehand.
DeleteThen you have rampant speculation, and oil oligarchs doing stuff like mothballing supertankers of oil offshore. Google "contango"..
http://thinkprogress.org/climate/2011/09/15/317330/leaked-cftc-oil-speculation-data/?mobile=nc
How long do Gas prices have to stay down to be a true employment building boost to the economy? Gas under $3.00 a Gallon is still expensive for burger flippers and part-time store clerks struggling to pay the bills they generated when earning twice as much.
ReplyDeleteIt could be a boon to a certain someone in the Oval Office...if the price dip endures long enough to really matter. Maybe it'll make someone else look good who really did nothing.