U.S. gas prices 'crash'

Jiro said:
but we have price gorging law that would prevent such case in gas sales.
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It's gouging, and that is a consumer/seller issue not a futures issue. Jess was on the right track, Ambrosia as well although the effects reach much farther.
 
I look forward to 99 cents per gal, so I can travel across the US/Canada/Mexico with RV.
 
Right, hence law of supply and demand.

Its nothing new that whenever gas price climbs crazy, people are going to find alternatives. Perfect example, Diesel now is very expensive (sigh, I know) and these 18 wheelers are now looking into changing to LNG which is far cheaper, domestic, and renewable.

I don't mind going LNG (Not interested in CNG) if I have chance.

CrazyPaul said:
My point is that if gas price goes higher and higher, more people will buy hybrid or electric cars. That means gas stations could go out of business. In the future, I believe that there will be charging stations everywhere.

Tesla Motors | Premium Electric Vehicles
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diehardbiker said:
Right, hence law of supply and demand.

Its nothing new that whenever gas price climbs crazy, people are going to find alternatives. Perfect example, Diesel now is very expensive (sigh, I know) and these 18 wheelers are now looking into changing to LNG which is far cheaper, domestic, and renewable.

I don't mind going LNG (Not interested in CNG) if I have chance.
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The demand and supply has something with oil price.

More demand, less supply - oil price goes UP

More supply, less demand - oil price goes DOWN

The gas price is mostly based on oil price, beside of refineries, shipment, taxes, speculation, etc.

The oil companies like Shell, Chevron, BP and 76 are known as energy companies, when gas/oil goes unpopular so they happily to sell alternatives like charging stations, LNG stations, fuel cell stations, so they ability to create a station with different alternatives.
 
CrazyPaul said:
You will NEVER travel to those places with that gas price. :lol:
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It would be nice to see 99 cents per gallon in US.

One day I would like to travel from San Francisco to Cabo San Lucas, 1535 miles = 26 hours.

My 1535.0 mile (2470.3 km) road trip will cost me about 47.49 in fuel, based on an efficiency of 32.00 miles per gallon and a total fuel volume of 47.97 gallons. (My fuel cost per mile will be about 0.03.) so cheap! :cool2:

San Francisco, CA to Cabo San Lucas, Baja California Sur, Mexico - Google Maps
 
authentic said:
It would be nice to see 99 cents per gallon in US.

One day I would like to travel from San Francisco to Cabo San Lucas, 1535 miles = 26 hours.

My 1535.0 mile (2470.3 km) road trip will cost me about 47.49 in fuel, based on an efficiency of 32.00 miles per gallon and a total fuel volume of 47.97 gallons. (My fuel cost per mile will be about 0.03.) so cheap! :cool2:

San Francisco, CA to Cabo San Lucas, Baja California Sur, Mexico - Google Maps
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It will happen if you were in 1990.
 
That's explain why I see $2.94 here. So awesome. However, I'm sure it will go up on during holiday season. More people are on road than air.
 
Not only about supply and demand, but also price impact on War in Western world. If there's war going on in Saudi Arabia, for sure the gas price will skyrocket. Just like what happen recently with Iraq, gas spiked a little when war started there.
 
ambrosia said:
Because it's a good sign the stock market isn't doing well.
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Well, the stock market has not been doing poorly. I am no expert, but I see the lower prices as a possible way to stimulate job growth, since the cost of shipping materials will be lower. Wait and see.
 
So TX, would $10 a gallon prices signal an upswing in the economy? I fail to see the connection. Please explain for all of us idiots here. Thanks.
 
saywhatkid said:
Well, the stock market has not been doing poorly. I am no expert, but I see the lower prices as a possible way to stimulate job growth, since the cost of shipping materials will be lower. Wait and see.
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I haven't read the article yet, I should do that. But when I think gas pricing "crashing" I don't think about what we have been seeing. I haven't seen the gas prices lower around here to any significant degree. Gas prices flucuate by a few cents on a day to day basis reflecting what the price of oil per barrel is. That's why it changes everyday, depends on what companies have to pay for the gas they sell you. Obviously there are many things that influence what the price per barrel is, but a sudden crash, a deep drop in price would point towards economic problems, not the usual supply/demand influences.
 
ambrosia said:
I haven't read the article yet, I should do that. But when I think gas pricing "crashing" I don't think about what we have been seeing. I haven't seen the gas prices lower around here to any significant degree. Gas prices flucuate by a few cents on a day to day basis reflecting what the price of oil per barrel is. That's why it changes everyday, depends on what companies have to pay for the gas they sell you. Obviously there are many things that influence what the price per barrel is, but a sudden crash, a deep drop in price would point towards economic problems, not the usual supply/demand influences.
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well we're not really talking about suddenly changing from $4/gal to $2/gal. that's moot point. what if over time... it went from $4 to $2 at steady pace? is it good or bad?
 
Jiro said:
well we're not really talking about suddenly changing from $4/gal to $2/gal. that's moot point. what if over time... it went from $4 to $2 at steady pace? is it good or bad?
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yeah I just read the article, I think crash is a bad word for it though, seems more like a slide :lol:

Well, it's be good for me!! and good for businesses, but since I don't know what the reasons behind this hypothetical drop in price from $4 to $2 would be I can't really answer that. Obviously it would be a good thing for individuals, but could it be a bad thing overall? No idea.
 
ambrosia said:
yeah I just read the article, I think crash is a bad word for it though, seems more like a slide :lol:

Well, it's be good for me!! and good for businesses, but since I don't know what the reasons behind this hypothetical drop in price from $4 to $2 would be I can't really answer that. Obviously it would be a good thing for individuals, but could it be a bad thing overall? No idea.
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that's why I asked TXGolfer for an explanation. Apparently he refused so is it a red herring? I simply cannot see how is it a bad sign. :dunno:
 
This time of year gas prices traditionally go down.
 
saywhatkid said:
So TX, would $10 a gallon prices signal an upswing in the economy? I fail to see the connection. Please explain for all of us idiots here. Thanks.
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Too complex for this forum and more than I care to write. The problem here is focusing on the what (price) rather than the why (cause) and the timing.
 
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