Obama waves hand, gas prices fall

[Galen Sevinne]

The guy is amazing. Gas here in town was $4.01 a gallon last week. I watched a speech by Obama and he spoke about gas speculation and waved his hand like J.C. would over a crippled man and wala..gas is now $3.89 a gallon. Reports are that it will drop another 5-10 cents next week.

Amazing, huh?

[AirFlacco]

SARCASM - RIGHT GALEN? NOT EVEN YOU COULD BELIEVE THAT. IF NOT:



“Here is some good news for the U.S. consumer for a change,” said Tom Porcelli, chief U.S. economist at RBC Capital Markets, noting that supply and demand for gas are in better balance these days, giving less ground for speculators who drove the price of gas higher earlier this year but are starting to retreat amid declining demand in the U.S., China and Europe.

But even before the White House announcement, gasoline futures prices started to drop precipitously in the past week on the New York Mercantile Exchange amid reports of a major economic slowdown in China and declining demand for gas in the U.S.


And there's a possibility prices could still reverse themselves. Hurricanes in the Gulf of Mexico, inflamed Middle East tensions or fighting in a major oil-producing country like Iran or Nigeria could reduce supplies. A surge in world economic growth could increase demand.

[StingerNLG]

Since I just paid $4 yesterday that miracle must not have lasted long, LOL

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[wickedsolo]

Weird that in an election year the gas prices will start dropping...

[wickedsolo]

SARCASM - RIGHT GALEN? NOT EVEN YOU COULD BELIEVE THAT. IF NOT:



“Here is some good news for the U.S. consumer for a change,” said Tom Porcelli, chief U.S. economist at RBC Capital Markets, noting that supply and demand for gas are in better balance these days, giving less ground for speculators who drove the price of gas higher earlier this year but are starting to retreat amid declining demand in the U.S., China and Europe.

But even before the White House announcement, gasoline futures prices started to drop precipitously in the past week on the New York Mercantile Exchange amid reports of a major economic slowdown in China and declining demand for gas in the U.S.


And there's a possibility prices could still reverse themselves. Hurricanes in the Gulf of Mexico, inflamed Middle East tensions or fighting in a major oil-producing country like Iran or Nigeria could reduce supplies. A surge in world economic growth could increase demand.

I actually just read something - and possibly we've discussed this before as well - that there have been a record number of trade in's (vehicle wise) from trucks and SUV's to cars and crossover's.

[AirFlacco]

According to this link they are, at least in Portland, OR.

Buyers are looking for more fuel efficient cars rather than SUVs and trucks.

They did last time the gov't sponsored their clunkers trade-ins and whenver
gas goes up to $4. Then they go back to the clunkers when gas prices
drop.

_____________________________________
Ed Tonkin, who runs 17 dealerships in the Portland, Ore., area, says he's seeing more people trading in trucks and SUVs for gas sippers. Buyers are assuming pump prices will stay high.

"We're getting a lot more interest in higher-gas-mileage vehicles," Tonkin says.



http://www.usatoday.com/USCP/PNI/Bus...-cars_ST_U.htm

[wickedsolo]

I traded in my Chevy Tahoe for a Volvo. There are other factors involved in that decision, but a big one was going from a big gas hog SUV to a car that gets 30+ on the highway.

I literally filled up my truck on a Monday ($96.00) and by Wednesday half of it was gone. That Wednesday I got the Volvo, haha.

[AirFlacco]

Yea, my friend says it costs almost $100 to fill her van. It goes down pretty quick because she has a business cleaning houses. I said you'll have to pass the costs on to us and she said no way. That's what the truckers are doing to the stores and they've already threatened not to run them at all if the gas goes up to $8 where the DEMs want it.

I have a 2010 Malibu LTZ. It costs $44 to fill. It was $34 when I bought it.

I'm getting great mileage around town and on a trip but the oil change is a killer.

[Galen Sevinne]

Jetta TDI. Small but 40-50 mpg...oil change every 10,000 miles. All the car 95% of us need. I fill up every three weeks or so. Gas prices mean little to me.

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[NCRAVEN]

Next thing you know we'll see a Whitehouse task force to investigate car dealerships for driving up the price of gas to get people to buy more fuel efficient cars.

[wickedsolo]

Jetta TDI. Small but 40-50 mpg...oil change every 10,000 miles. All the car 95% of us need. I fill up every three weeks or so. Gas prices mean little to me.

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The Jetta TDI is a great vehicle. Those Turbo-Diesel engines are really built well.


However, that doesn't mean that the dramatic increase in fuel prices won't impact your daily living and it doesn't make it ok.

Oil Prices go up = gas prices go up = tire prices go up = public transit fees go up = goods & services go up due to travel costs, etc , etc, etc.

This is really stupid, but I remember when I was in college (early 2000's) and the cost for a keg of beer at one point was like $30 and when gas prices started going up the price per keg went up like 30% because of the increased cost for shipping due to gas/oil prices going up.

So, gas prices may mean "little" to you, but other things may not and those increased prices at the pump will undoubtedly impact other areas of the market as well.

[wickedsolo]

Next thing you know we'll see a Whitehouse task force to investigate car dealerships for driving up the price of gas to get people to buy more fuel efficient cars.

Haha, I'm all for Americans (as a whole) downsizing their vehicles. Fuel efficiency should be a big selling point on a vehicle and there are vehicles out there that still give 4x4/AWD/SUV options so it's not like everyone has to feel like they need to buy one of those 2-seater go-carts they call "smart" cars.

Sure there will still be a market for trucks and whatnot because of the construction/farming/contracting industry, but does a stay at home mom with 2 kids REALLY need a full sized Chevy Suburban? Probably not.

[NCRAVEN]

Probably doesn't need it, but if she wants it, go for it.

[wickedsolo]

Probably doesn't need it, but if she wants it, go for it.

Isn't that part of the mentality that got Americans into so much trouble with mortgages?

[NCRAVEN]

Isn't that part of the mentality that got Americans into so much trouble with mortgages?

Apples and Oranges.

[Galen Sevinne]

Next thing you know we'll see a Whitehouse task force to investigate car dealerships for driving up the price of gas to get people to buy more fuel efficient cars.

I think you have that backwards as in this scenario it would be the connies investigating since there would appear to be the incentivising of energy efficiency. Connies want the "liberty" to buy their carbon-whoring, ego-inflating Super Useless Vehicles.


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[Galen Sevinne]

Isn't that part of the mentality that got Americans into so much trouble with mortgages?

Exactly

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[Galen Sevinne]

The Jetta TDI is a great vehicle. Those Turbo-Diesel engines are really built well.


However, that doesn't mean that the dramatic increase in fuel prices won't impact your daily living and it doesn't make it ok.

Oil Prices go up = gas prices go up = tire prices go up = public transit fees go up = goods & services go up due to travel costs, etc , etc, etc.

This is really stupid, but I remember when I was in college (early 2000's) and the cost for a keg of beer at one point was like $30 and when gas prices started going up the price per keg went up like 30% because of the increased cost for shipping due to gas/oil prices going up.

So, gas prices may mean "little" to you, but other things may not and those increased prices at the pump will undoubtedly impact other areas of the market as well.

This is true. Six packs of beer have gone up about 50 cents in the past 6 months. I guess my point was more just at the pump. I only burn about 20 gallons of fuel a month with my TDI so even a dollar a gallon only means 20 bucks a month which is certainly money but not losing sleep over it.

By the way, Smart Cars are probably the dumbest cars on the market unless you live in a large city and park on the street. Even then, there would be better choices. As small as they are they still only get about 25 mpg i think.

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[NCRAVEN]

I think you have that backwards as in this scenario it would be the connies investigating since there would appear to be the incentivising of energy efficiency. Connies want the "liberty" to buy their carbon-whoring, ego-inflating Super Useless Vehicles.

Really, this is your comeback?

[wickedsolo]

Apples and Oranges.

Not really.

A stretch, perhaps, but not completely out of the realm of comparisons to be made.


BTW - I don't disagree with you that it's everyone's right to drive and purchase what they want.