rockin'robin

Memorial Day weekend kicks off the summer vacation season. Gas prices are trending lower, according to the AAA's Daily Fuel Gauge, but too great a demand will undoubtedly cause the price to rise. Economists note higher prices are generally a sign of a healthy economy even though the average citizen would like to see lower prices. The current lower prices might be short-lived and might not be indicative of the American economy.

CNN Money reported gas prices might be at the lowest, but that would depend on several factors. The Oil Price Information Service compiles the pump price averages for AAA. Chief oil analyst Tom Kloza noted the European economic situation and the "fear premium" on oil futures as having a hand in the decline of prices.

Austerity measures throughout the European Union and economic uncertainty has caused less demand for fuel among the member nations, resulting in a decrease in per barrel oil prices. An alteration in the uncertainty such as stabilization of the Spanish banking system and/or a return to normalcy in Greece might see an opposite effect.

A second factor is the wait-and-see attitude with regard to Iran. Constant fear of an imminent attack or a destabilizing war in the region that would alter oil production in Iran or its surrounding neighbors drives prices higher. While the economic sanctions and political rhetoric have cooled off with regard to Iran's plans for developing a nuclear energy capability, the "fear premium" remains low and contributes to the lower pricing of oil.

Volatile as the nature of politics in the Middle East continues to be, conditions could change at a moment's notice. Still, overall gas prices in the U.S. are trending lower -- not so much in the Western states and a little better than average on the East Coast -- and the national average shows a drop of 29 cents to $3.64 since it peaked in early April.

Although it might appear to be harmful on a smaller level, higher gas prices are indicative of a healthy and growing economy. Recession is when gas prices are seen to plunge to their lowest because of the general cutting back by people and companies on traveling and fuel costs. Less demand produces a larger supply. For oil companies to get rid of the excess supply, prices go down.

The prices also could be sending a mixed message about America's economy. Lowering gas prices could be an indication of an economic slowdown and not just a byproduct of world economic and geopolitical trends. If so, gas prices will continue to fall and that could become problematic for everyone as the U.S. remains the world's economic driver. Although those lower gas prices might sound great to the average person filling up their tank, it could spell a return to recession.
The Problem with Lower Gas Prices - Yahoo! News

Deafness

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Foxrac

$1.05 per gal in Los Angeles in summer 1991.

I miss those low gas price.

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TXgolfer

I paid $4.69 this week........ lower?

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Foxrac

The gas price is very expensive in SF bay area.

Same goes with Hawaii too.

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TXgolfer

I know....I was in Hawaii last week. It's much more expensive in liberal cities....they like to politicize their gas.

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Do not be overcome by evil, but overcome evil with good. - Romans 12:21


Sometimes at night, I see their faces. I feel the traces they've left on my soul

Foxrac

Why are you bring political issue about gas price? This thread isn't place for debate over gas price.

The gas price is much higher in some part of Alaska but they are not liberal place.

I disagree with you about politicize the gas price, though.

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Foxrac

In some cities, they have extra local tax in gas to fund for public transportation so that why gas price is higher in city limit than in suburb.

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TXgolfer

Sure it is.... And yes in places like California the price of gas is very much political. If you choose not to believe that, that is your choice. *shrug*

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Do not be overcome by evil, but overcome evil with good. - Romans 12:21


Sometimes at night, I see their faces. I feel the traces they've left on my soul

Foxrac

What about Alaska?

I don't think it is liberal or conservative issues.

In Florida, the gas price is expensive in Miami and some of them are over $4.

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TXgolfer

Imagine that.....

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Do not be overcome by evil, but overcome evil with good. - Romans 12:21


Sometimes at night, I see their faces. I feel the traces they've left on my soul

Foxrac

During Katrina era, the gas price was more expensive in southern states than in California.

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rockin'robin

Lowest I've seen near me was $3.65/gal., (regular)...and I filled up on it! Due to the weather, tho', not going out too much, so won't be driving any long distances.

Foxrac

Do you remember about Venezuela?

Their government is extreme left wing but gas price is super cheap.

I want drive F-350 truck on Venezuelan road and take advantage of cheap fuel.

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TXgolfer

Imagine that....

__________________
Do not be overcome by evil, but overcome evil with good. - Romans 12:21


Sometimes at night, I see their faces. I feel the traces they've left on my soul

TXgolfer

Be interesting to see what happens from here.

__________________
Do not be overcome by evil, but overcome evil with good. - Romans 12:21


Sometimes at night, I see their faces. I feel the traces they've left on my soul

TXgolfer

The politics of Venezuela and California are a tad different. as are their motives.

__________________
Do not be overcome by evil, but overcome evil with good. - Romans 12:21


Sometimes at night, I see their faces. I feel the traces they've left on my soul

Foxrac

Maybe we should trade Obama with Chavez as our president.

I can see massive reform - the gas price goes DOWN so loudly to 20 cents per gal but... the inflation for our currency (dollar) will SHOOT UP to 30% per year.

I can't find eggs, flour, bread, milk, etc at grocery store.

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TXgolfer

Meh, they are pretty much the same guy.... Just different agendas.

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Do not be overcome by evil, but overcome evil with good. - Romans 12:21


Sometimes at night, I see their faces. I feel the traces they've left on my soul

Foxrac

I'm just joking.

I don't agree about both of them are same guy, even Obama isn't socialist.

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TXgolfer

You are entitled to your opinion.....

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Do not be overcome by evil, but overcome evil with good. - Romans 12:21


Sometimes at night, I see their faces. I feel the traces they've left on my soul

Foxrac

That's not my opinion, it is fact about Obama isn't socialist.

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TXgolfer

That is not a fact....at least..... Not in my opinion.

__________________
Do not be overcome by evil, but overcome evil with good. - Romans 12:21


Sometimes at night, I see their faces. I feel the traces they've left on my soul

Foxrac

Whatever.

I'm not going argue with you about how make way like that.

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TXgolfer

Excellent

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Do not be overcome by evil, but overcome evil with good. - Romans 12:21


Sometimes at night, I see their faces. I feel the traces they've left on my soul

Foxrac

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KristinaB

Our gas prices in this area have been dropping slowly for a while. Surprising bit of info is that there are less people in our area buying gas. More and more people who can, are taking the bus, riding bikes and walking.

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