Gas Price Prophesy

[G-Papi]

I believe two things about the gas price swing ~
1. Prices were kept artificially high after Katrina to twist consumers' arms to encourage Alaskan Wildlife Preserve production. and
2. Prices are dropping to lull voters into a fat and happy satisfied mode prior to the November Election.

There's a direct-connect between gas prices and Bush approval ratings. Once the objective is accomplished (the election), it will be back to "screw the consumer as usual".

 

[sephiroth]

(omg) THAT WILL BE NICE!!!

it's already down to 1.95 regular here.

in any case, it's gone from us average of $3 per gallon to $2.40 in less than a month.

 

[G-Papi]

We're still getting shafted in central Virginia. 2.50 is the lowest premium I can find.

 

[ZoomZoomH]

2.25 premium last saturday

 

[Donas64]

I believe two things about the gas price swing ~
1. Prices were kept artificially high after Katrina to twist consumers' arms to encourage Alaskan Wildlife Preserve production. and
2. Prices are dropping to lull voters into a fat and happy satisfied mode prior to the November Election.

There's a direct-connect between gas prices and Bush approval ratings. Once the objective is accomplished (the election), it will be back to "screw the consumer as usual".

Yes its true that gas prices influence the Presidents approval ratings but

1. Bush does not control gas prices. Anyone who thinks he does knows nothing about economics and the principles of supply and demand.

2. Anyone who knows anything about this President knows that he does not give two farts about approval ratings or poll numbers.

There are things (the war, OPEC, lack of refining capacity, hurricanes) that impact the price of oil. The price of oil could go up after the elections, it could continue to drop. No one really knows

 

[singlemalt_18]

I believe two things about the gas price swing ~
1. Prices were kept artificially high after Katrina to twist consumers' arms to encourage Alaskan Wildlife Preserve production. and
2. Prices are dropping to lull voters into a fat and happy satisfied mode prior to the November Election.

There's a direct-connect between gas prices and Bush approval ratings. Once the objective is accomplished (the election), it will be back to "screw the consumer as usual".

G-Papi - While I can empathize, and understand your cynicism, I must agree with Donas64. Currently, it is the WORLD price of oil that has come down to ~$60/bll from near $80 some weeks ago. Major producers in the world supply include Russia & Venezuela, along with Iran & Nigeria - unfortunately we are dependent on these 3rd world countries for alot of the world supply. The oil companies just get it out of the ground & bring it to market.

Also, if you look at domestic gasoline prices over the past 20 years, you will find that they ALWAYS decline between september & november - simple supply & demand, along with the fact that the winter blends do not cost as much to refine.

As for the politics of it all, I think it is a case of "Live by the Sword; Die by the Sword" for the Dems. To the extent that they wanted to blame Bush for the rising prices, is the extent that he now gets some political benefit from prices going down. Politicians aren't the brightest bulbs in the room; if they were smart enough to understand financial markets, as well as historical trends... in other words - if they were even smart enough to know what they don't know - they might not always need to hope for things to go wrong to win elections.

One thing is for sure... gas prices have come down fast enough to make one dizzy. We are at about $2.35 for reg, and about $2.55 for 93 octane here in Pittsburgh.

 

[Donas64]

G-Papi - While I can empathize, and understand your cynicism, I must agree with Donas64. Currently, it is the WORLD price of oil that has come down to ~$60/bll from near $80 some weeks ago. Major producers in the world supply include Russia & Venezuela, along with Iran & Nigeria - unfortunately we are dependent on these 3rd world countries for alot of the world supply. The oil companies just get it out of the ground & bring it to market.

Also, if you look at domestic gasoline prices over the past 20 years, you will find that they ALWAYS decline between september & november - simple supply & demand, along with the fact that the winter blends do not cost as much to refine.

As for the politics of it all, I think it is a case of "Live by the Sword; Die by the Sword" for the Dems. To the extent that they wanted to blame Bush for the rising prices, is the extent that he now gets some political benefit from prices going down. Politicians aren't the brightest bulbs in the room; if they were smart enough to understand financial markets, as well as historical trends... in other words - if they were even smart enough to know what they don't know - they might not always need to hope for things to go wrong to win elections.

One thing is for sure... gas prices have come down fast enough to make one dizzy. We are at about $2.35 for reg, and about $2.55 for 93 octane here in Pittsburgh.

Very good post. Anyone who drives a car that takes premium gas should be jumping for joy right now. Get out your jerri cans and start stockpiling that stuff!

 

[Kansei]

i don't know who's gonna win come november, however i just filled up my 8 w/ premium at $2.19 a gallon, that's prices i haven't seen in years

I hate you.. I just filled up my P5 yesterday at 3.06 a gallon.

 

[G-Papi]

Premium here at 2.40 today.

 

[G-Papi]

Yes its true that gas prices influence the Presidents approval ratings but

1. Bush does not control gas prices. Anyone who thinks he does knows nothing about economics and the principles of supply and demand.

2. Anyone who knows anything about this President knows that he does not give two farts about approval ratings or poll numbers.

There are things (the war, OPEC, lack of refining capacity, hurricanes) that impact the price of oil. The price of oil could go up after the elections, it could continue to drop. No one really knows

If this is a market economy, then what has happened since August 17, 2006 to bring premium gas prices from an average $3.24 down to an average $2.61 on September 25th?

The war(s) have not gotten anything but worse; there have been no storm impacts, and none predicted; the Alaska pipeline is still an issue.

The only major incident is the approaching political confrontation brought about by the mid-term elections.

I know that, even though he is an "oil guy", Bush can't arbitrarily adjust oil prices. But somebody can. Those somebodies are usually in the form of producers and speculators.

Don't you get the feeling that those somebodies envision more republican losses if approval ratings stayed at the levels of a month ago. Perhaps they envisioned losses of republican and conservative seats in Congress. If they could manipulate the prices to ease some dissatisfaction in the short term, perhaps they could increase their profits in the long term. These guys aren't stupid. To them, profit is the bottom line.

 

[G-Papi]

Have prices bottomed out?

 

[Donas64]

This Just In: For those that think "George Bush" controls gas prices, here is further proof that he has little or no influence over them:

There are rumblings that OPEC is considering slowing production by about 4% to drive prices up again. If you want to blame someone for gas prices you can start with them.

I think that it's kinda funny that when prices are high GW gets the heat and no one talks about OPEC. I wonder if they will get some attention now.

http://www.theglobeandmail.com/servlet/story/RTGAM.20061005.wopec1005/BNStory/Business/home

Heck just google "Opec to cut oil production and read the news stories for yourself.

BUSH DOES NOT CONTROL GAS PRICES

The UAE, OPEC, HUGO CHAVEZ e.t.c have MUCH more of an Impact than G-DUB

 

[Donas64]

Gas here in VA is down to $1.99

 

[cruzdreamer]

In Illinois it's down to $2.23-$2.39 regular. My 2nd fill up was similiar to first with 20.5 mpg city.

 

[Kansei]

Gas here in VA is down to $1.99

duuuuude. I paid 3.09 a day or two ago here (.90 for regular). I need to go back to getting my gas in the hood instead of the glitzy suburb where my office is

 

[Donas64]

duuuuude. I paid 3.09 a day or two ago here (.90 for regular). I need to go back to getting my gas in the hood instead of the glitzy suburb where my office is

You sure do! Kroger has gas here in my town for $1.99

 

[G-Papi]

Still slowly going down here

 

[G-Papi]

First phase of prophesy fulfilled. In today's news conference, G.W. Bush, in speaking of why Republicans should be reelected, said, ". . . gas prices are down . . ".

He certainly can't control them, but he doesn't mind taking credit for them when they decrease.

The pricing is political to him.

 

[Donas64]

First phase of prophesy fulfilled. In today's news conference, G.W. Bush, in speaking of why Republicans should be reelected, said, ". . . gas prices are down . . ".

He certainly can't control them, but he doesn't mind taking credit for them when they decrease.

The pricing is political to him.

Hey the media and the Dems are quick to bash him and toss him under the bus when the prices rise sky high. You think it's not political to them?

He'd be a fool not to take some credit when the prices come down.

He takes a beating when they go up, he takes the credit when they come down.

 

[Kansei]

just because he doesn't dserve the "beating", doesn't mean he should be taking any credit when prices come down.

He has created quite a bit of unrest in the middle east.. and with unrest comes higher prices, so yeah that's kinda a problem.