Oil futures plunge and gas prices slip (Does the Tea Party get the credit?)

LA Times ^ | 8/9/2011 | By Ronald D. White

[tobyhill]

Oil prices tumbled to the lowest level in more than eight months and retail gasoline prices slipped amid concerns about a double-dip recession and Standard & Poor's downgrade last week of the U.S. credit rating.

The U.S. benchmark grade of crude, West Texas Intermediate, plunged $5.57 to close Monday at $81.31 a barrel on the New York Mercantile Exchange. That was its lowest close since Nov. 23.

The European trading benchmark, Brent North Sea crude, dropped $5.63 to settle at $103.74 a barrel on the ICE Futures Exchange in London.

Nationally, the average retail price for regular gasoline fell 3.7 cents to $3.674 a gallon Monday, after five weeks of price increases, according to the Energy Department's weekly survey of service stations. Last year at this time, the U.S. average was 89.1 cents lower, at $2.783.

[thackney]

At $4 you have had some drop in price.

[Smokin' Joe]

THe law requiring oxygenating additives in motor fuels goes back to the nasty old days of MTBE, which was the additive of choice for the oil companies. But there were problems with MTBE contaminating groundwater, and the stuff doesn't break down very well. In addition it is a wee bit bad for you and the Government mandated it or Ethanol as the additive. When the Government, in the midst of the disclosure that MTBE was evil, failed to legislative renew liability waivers associated with the chemical, the switch to Ethanol occurred.

After that, Ethanol has been touted as the 'fuel you can grow', and with substantial Government subsidies (our money thrown in) has been the only economically viable oxugenating additive and touted as a gasoline replacement as well.

The farmers are just along for the ride, although they are getting a premium on what they grow in the process through higher corn prices.

[liberalh8ter]

Good! Just in time for a DC road trip, LOL!

[q_an_a]

i don’t know about 300 oil but if you have been to Sam lately you will know that Folgers coffee is up 30% Bounty towels 20%, avacados 25%, socks 20% - how much inflation do you need? Gas is still 1.00 more than a year ago and double three years ago - even when the amount of gas in stock or sold show no realtion to “supply and demand”

[Iscool]

Here is Texas we have dropped about 7 cents in the last 3 days.

News says it dropped to 70 bucks a barrel...Gas should by about 2.50 a gallon at those prices...Any more than that and it's the refiners and suppliers robbing us...

[tobyhill]

It takes longer to go down than up.

[Iscool]

It takes longer to go down than up.

Sure it does but there's no other word for it than robbery...