Gas sinks to 3-year low

[Murrican]

http://money.cnn.com/2008/10/29/news/economy/gas_prices/index.htm?cnn=yes

Now is not the time for people to relax about energy costs, it's time to drill, and ramp up efforts to bring geothermal, solar, natural gas and windpower to market sooner and faster by re-doubling tax write-off incentives and federal investments. Also, while I still remember 3 Mile Island when thinking of nuclear power, let's not go big, but go small and secure with nuclear reactor-based power sources for cities (using same technology on aircraft carriers and subs). And let's quickly grease the GM/Chrysler merger and include big bucks for guaranteed production of electrical vehicles. That will cut the oil demand, increase American jobs, etc.

Energy policy should have a dual focus: energy independence and job creation, maximizing both asap.

Gas sinks to 3-year low

Gasoline prices in 42-day, 37% decline, as oil prices and fuel consumption continue to fall.

By David Goldman, CNNMoney.com contributing writer
Last Updated: October 29, 2008: 10:55 AM ET

NEW YORK (CNNMoney.com) -- Gas prices fell for the 42nd-straight day Wednesday, according to a nationwide survey of credit card swipes at gasoline stations.

The average price of unleaded regular gas dropped 4 cents to $2.589 a gallon, according to the survey released by motorist group AAA.

Gas has fallen every day since Sept. 17, a few days after Hurricanes Gustav and Ike battered the Gulf coast. The last time gas was this low was Aug. 18, 2005.

Prices are now down 37.1%, or $1.485, from the record high price of $4.114 a gallon set on July 17. The average price dropped below $3 a gallon on Oct. 18 for the first time in nearly nine months.

Even with falling prices, demand for gas continues to drop. Americans are driving 5.6% less than last year, according to a recent U.S. Department of Energy report. And a weekly MasterCard survey of gas purchases showed motorists consumed 6.4% less gas in the past week compared to a year ago.

Retail gas prices have benefited from lower oil prices. Crude has been in a sharp decline since mid-July amid weakening demand; losing more than half of its value since it reached a record of near $150 just two months ago.

Three states reported gas prices above $3 a gallon in the AAA survey: Alaska, Hawaii and California. But 18 states had gas price averages under $2.50 a gallon.

[ConnieB]

This "recession" has put over $120.00 back into our pockets by decreasing the gas prices. (My hubby was paying 25.00 per day for gas, now he's down to 17.00). I hope it goes back to where it belongs...under $2.00 per gallon and stays there.

MI is now at $2.38 and decreasing by 4-5 cents every other day.

[db44]

You wanna call it recession? Go ahead.

This happens every year. We're seeing it go lower than for three years for two parts of the same reason: Presidential election year. It's important because they don't want oil to be an issue and because the Texas-Bush era is over. Keep it low, hopefully avoid the ire of whoever comes in next... 'Cause either candidate isn't going to protect or baby the industry the way Bush did.

[Incident]

You wanna call it recession? Go ahead.

This happens every year. We're seeing it go lower than for three years for two parts of the same reason: Presidential election year. It's important because they don't want oil to be an issue and because the Texas-Bush era is over. Keep it low, hopefully avoid the ire of whoever comes in next... 'Cause either candidate isn't going to protect or baby the industry the way Bush did.

You do know that oil is a world-wide commodity, right? You do know that it is world-wide commodity markets that set the oil price, right?

[db44]

I do know that it always works well to blame OPEC, yet we're always talking about what we're doing, and what our oil comapnies are doing to help/hurt us. It was the U.S. companies making the record profits this last year. Perfect screen if you ask me. And it always works well that prices rise just as soon as the election's over. Just how OPEC voted what, last week, to cut production? How convenient, by the time the prices start to go up should be the week after the election or so?

You don't think OPEC and Texas are happy with each other? That Texas has a say in what happens? I think OPEC takes U.S. Big Oil very seriously, and they all benefit from it.

[AlexzAficionado]

Gas used to cost $1.30 a gallon.

Until it's that low again the oil companies need to be hurting for money.

[Incident]

I do know that it always works well to blame OPEC, yet we're always talking about what we're doing, and what our oil comapnies are doing to help/hurt us. It was the U.S. companies making the record profits this last year. Perfect screen if you ask me. And it always works well that prices rise just as soon as the election's over. Just how OPEC voted what, last week, to cut production? How convenient, by the time the prices start to go up should be the week after the election or so?

You don't think OPEC and Texas are happy with each other? That Texas has a say in what happens? I think OPEC takes U.S. Big Oil very seriously, and they all benefit from it.


Did I blame OPEC, I don't think so? The oil markets set the oil price?

US Oil companies do not. Right? If you think they do please explain how US Oil Companies set the world oil price.

As for gas prices going up after the election, duh. What major travel holiday occurs shortly after every November election? Do gas prices go up this same time of year in non-election years?

[Murrican]

Yep, recession.

Lower demand for oil

So much lower even speculators can't pump it up

http://www.thestar.com/Business/article/527881

GDP signals U.S. recession

Oct 31, 2008 04:30 AM

JEANNINE AVERSA
Associated Press

WASHINGTON–Scared and out of money, Americans cut spending in the third quarter by the largest amount in 28 years, jolting the economy into what could be the most painful recession in decades.

The government yesterday reported U.S. gross domestic product declined at an annual rate of 0.3 per cent in the July-September period and consumers' disposable income took its biggest drop on record.

In simpler words, "The train went off the tracks," said Brian Bethune, economist at IHS global Insight.

But economists say tougher times are ahead. Believing consumers are cutting back even more right now, they predict a larger economic decline – anywhere from a 1 per cent to 2 per cent rate – during the current October-December period. That would meet a classic definition of a recession – two straight quarters of shrinking GDP.

Not that there's any real doubt now.

Clobbered by pink slips, shrinking nest eggs and falling home values – consumers are holding tight to their wallets as disposable income fell at an annual rate of 8.7 per cent in the quarter, the largest in records dating back to 1947.

More than in recent recessions, consumers are bearing the brunt of the country's housing, banking and other ailments. The third-quarter decline in their spending was the first in 17 years, and the 3.1 per cent annualized cutback was staggering – the most since the spring of 1980, when the country was in the grip of what some call the worst downturn since the Great Depression.

[WannaBreatheYou]

Gas used to cost $1.30 a gallon.

Until it's that low again the oil companies need to be hurting for money.

When I started driving in 1989, gas was under a buck a gallon.

How I miss spending $10 and filling my tank.

[ConnieB]

You wanna call it recession? Go ahead.

This happens every year. We're seeing it go lower than for three years for two parts of the same reason: Presidential election year. It's important because they don't want oil to be an issue and because the Texas-Bush era is over. Keep it low, hopefully avoid the ire of whoever comes in next... 'Cause either candidate isn't going to protect or baby the industry the way Bush did.Do you realize OTHER people have their hands deep in the oil business....Clinton's, Kennedy, Pelosi, Reid..just to name a few. So it's NOT just a Texas-Bush era. It's a Washington-congress era...which will NEVER be over unless we remove those "old folks: from office. You want REAL change...place term limits on congress.

By the way, as of today gas is 1.93 in my area...

[Murrican]

When I started driving in 1989, gas was under a buck a gallon.

How I miss spending $10 and filling my tank.

<sigh> ditto

I remember paying less than 20 cents a gallon in Washington, DC back in 1966 on a roadtrip. And the gas stations had all kinds of giveaways to get you to buy -- glasses, football helmets, tiger tails, etc.

That's how we got addicted...