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With all eyes focused on the stock market and the presidential candidates and federal bailouts and whatnot, the cratering price of gas is getting lost in the fug of financial ruin. Anyone remember how much gnashing and wailing accompanied its rise? Anyway, Reuters reports that “The national average price for self-serve, regular unleaded gas fell 35.03 cents to $3.3079 a gallon on October 10 from $3.6582 two weeks earlier.” Trilby Lundberg (a.k.a. the “Prophet of the Pumps”) says plummeting oil prices and caving gasoline demand have “combined to bring the biggest retail gasoline price cut in the history of the market. We’ve been doing this 58 years. This is truly the biggest price drop.” Lundberg is predicting sub-$3.00 gas by December. Similarly, a recent MasterCard report carried by CNBC reveals that the U.S.’ most recent four-week average of gasoline consumption amounted to 8.921 million bpd, down 6.2 percent from a year ago.” Demand, down. Prices, down. So much for the China Effect.
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When I stuck the nozzle into the filler neck this morning, the price on the pump was 2.999. When I removed it, it was $2.959….. That’s rapid price movement!
I’m going to sound like a broken record (I’m going to sound like a broken record), but let’s see those short memories in action and watch those SUVs get snatched up with all that cash on the hood and “cheap” gas now …
I know, I sound like a broken record.
It’s $2.8x here. My husband and I will continue carpooling to and from work, but I’m sure glad to see the price go down.
I saw $2.649 today while driving through Fort Smith, Arkansas. Nice to see the price falling, and I hope that this improves consumer confidence at least a little bit.
$2.49 in Springfield, Missouri this morning.
We have gas in Asheville NC again.
I could care less what the price is!!!!!!!!!!
An important lesson apparently had to be learned yet again: When too much is charged for a given product, people will purchase less of it. As John pointed out: So much for the China effect. Yes, it’s true: The really cheap oil is gone and the broader trend in prices will continue to be upward until there is no oil left. But can there be any doubt about the role of speculators in the oil market this year?
Steve Biro:
But can there be any doubt about the role of speculators in the oil market this year?
Yup.
Speculation was rampant in the oil market, and the housing market, and the auto market, and the steel/copper/platinum markets…
Lotsa people wanted to play TheDonald. Those lotsa people now have major financial headaches.
So much for the China effect?
A closer look would reveal that China’s economy has both feet on the brakes, pretty much since the Olympics ended. They are still growing, but in low, single digit numbers. The economies of Brazil, China and India have all slowed dramatically, which has reduced worldwide demand. Prices here have helped to reduce demand as well. Americans are driving less.
the absolute CHEAPEST I’ve seen it in Chicago is at $3.53. not much of a drop from $4.19. Not that it bothered me that much anyhow.
I’d be surprised if gas was generally available here @ $3/gal in december. There might be a few places but I bet the vast majority stay over $3.
I still see $3.65-$3.90 not far from work in downtown Evanston.
Gas is still hovering around $3.50 or so here in Seattle. Then again, we have relatively large gas tax rates here.
The best local price I’ve seen for regular is $3.49 in Northern California, but we have become accustomed to paying more here for just about everything :(. What is really strange is that I filled up my TSX recent and rejoiced that the cost was way under $50 for the tank (premium fuel, natch).
2.99 or a little less a gallon here in NE Florida. That means Southern Georgia is 10 to 15 cents cheaper because they have less gas tax than FL. I have to check with my relatives in South Jersey to see what it’s doing there. They have lower gas taxes too with some of the lowest gas prices in the country (about the only thing that is cheap in NJ).
@windswords: In northern NJ, you can find gas at $2.89 right now.
Popping into the local SuperAmerica this morning to get my cup of coffee (on my way to the Park n’ Ride…..), gas was $2.839 here in Minneapolis. Over the weekend I saw it around $2.69 in the northern suburbs. I haven’t been to the station where I get the non-oxy 91 octane stuff for the old car, but I suspect it is now probably in the $3.25 range judging from the other prices.
However, since I put around 4,000 miles/year on the Firebird and she puts about 9,000 miles/year on the Rainier, gas prices haven’t really been an issue in our budget. We haven’t cut into the outings in the classic either, and we have been averaging about 2,000 miles/year in it (at 12mpg …. 383/4brl and a heavy foot …..).
I’m sure that the environmentalists are the only ones upset about gas prices going down. But don’t worry you tree huggers, prices are bound to go back up.
a- its not cheap, its just less expensive. remember that in 1999 it was about a buck a gallon, as i recall.
b- markets do not respond that quickly. It is likely that the reduction in price that we are seeing now are for contracts that were negotiated at lease a few months ago.
c – i believe, tho i have no way to prove it, that alot of speculators got out of the commodity when the talk of public executions got heated.
d-Airhen – i thought environmentalists and tree huggers were the same.
Will everyone who posted that $80 oil was not ever going to happen again please own your remarks or risk complete loss of credibility?
For the record, I am still waiting for diesel to return to sub premium prices, so my petro predictions have still not all come true.
Oh, and if you conspiracy guys could explain how this happened in your reality, that would be cool too.