The price at the pump should eventually fall back to the typical relationship with the price of a barrel of crude. That does mean the prices at the pump will drop less quickly than the price of crude.
Posted on 08/15/2008 12:26:06 PM PDT by pissant
NEW YORK (AP) — Oil prices fell to the $111 level Friday, reaching their lowest point in more than three months after the dollar muscled higher and OPEC predicted world demand for energy will keep falling.
(Excerpt) Read more at ap.google.com ...
So you'd think we'd be paying a little over $3.00 a gallon, or 24 percent below what we were paying on July 11. We've seen more like a 10% drop over what we were paying at its highest.
Word up!
It can’t be instant.
The gas we burn now was refined when?
Doesn’t quite work like that. There’s another commodity involved in the price of gasoline, *hint* Gasoline.
If we bought less foreign oil, even if the world price inexplicably remained the same, the US Dollar would recover against foreign currencies and we would be paying less US$ per barrel.
At least a third of the run-up in the cost of crude can be attributed to the falling dollar.
I was a bit critical of the rate of decline of prices, but lately they’ve dropped significantly here in the Philly burbs. They’ve gone from $4.13 to $3.45.
The media has discovered the dollar in the past week or so. Dollar strength is much faster at dropping prices than drilling, oil alternatives, or conservation.
Gas at the corner here in MI is 3.95 a gallon.
Huh?
Gasoline is still trading at 285.35 cents per gallon which should come out to be about $3.71 per gallon at the pump before taxes.
I believe the $111 spot price is for September delivery.
If America opens up offshore drilling(and other energy issues) expect that to happen..
New Nuke plants, new refinerys, Shale oil production.. etc..
Down? Must be the work of “evil speculators” and “greedy oil companies”.
As the Sheik of Araby likes to say: “Praise Allah for Nancy Peolosi”. Then under his breath says: “How can any one woman be so stupid”?
Yep. We can also stop the dollar’s decline by not printing more of them.
Well, yes... But they how would we pay for the oil?
Nuclear (or as some like to say “nukular”), new refineries, oil shale, off shore drilling, ANWR, coal, coal-to-oil, natural gas... we’ve got tons of energy that doesn’t require new technology (except oil shale, but that can be worked on). I’m sick of people peddling wind and solar as viable alternatives. And ethanol, oh God.
Let oil companies drill here so we wouldn’t have to pay. Or cut spending. Or both.
The price at the pump should eventually fall back to the typical relationship with the price of a barrel of crude. That does mean the prices at the pump will drop less quickly than the price of crude.
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