V8 Beast Posted October 29, 2008 Report Share Posted October 29, 2008 So how much of a hit do you think the little gas companies are taking... or do you think the lower prices are causing people to buy more gas? I really hope the big boys that used false reasons to try and rape our pockets are seeing some type of loss from this.. but probably not. Quote Link to comment Share on other sites More sharing options...
LJ Posted October 29, 2008 Report Share Posted October 29, 2008 I really hope the big boys that used false reasons to try and rape our pockets Explain, please. The oil companies were merely maintaining a profit margin over COGS. Exxon and the like didn't drive oil prices that high, hell Exxon doesn't even hedge with futures let alone trade contracts. are seeing some type of loss from this.. but probably not. Nope Quote Link to comment Share on other sites More sharing options...
V8 Beast Posted October 29, 2008 Report Share Posted October 29, 2008 Youre right they made their money from higher prices period. The local places are the ones that tried to use hurricanes and stuff as a reason to make a quick profit. Quote Link to comment Share on other sites More sharing options...
LJ Posted October 29, 2008 Report Share Posted October 29, 2008 Youre right they made their money from higher prices period. The local places are the ones that tried to use hurricanes and stuff as a reason to make a quick profit. Some places yes, but down south there really was a supply shortage. Price is a way of controlling supply and demand. Right now in the U.S., demand is way down and supply was pretty high, so the price of gas has lowered in order to sell off excess supply and hopefully raise demand. Quote Link to comment Share on other sites More sharing options...
Adam Posted October 29, 2008 Report Share Posted October 29, 2008 It'll never get back down to $2 per gallon now that the oil companies have gotten it all the way up to $3+. oops Quote Link to comment Share on other sites More sharing options...
gillbot Posted October 29, 2008 Report Share Posted October 29, 2008 I would love to be proven wrong, but I think this will be very short-lived and is in all probability being influenced by the election. I wouldn't be surprised to see "supply and demand" dictate an increase in costs after the election. But we'll enjoy it while we can. Oh don't get me wrong, I think it will shoot back up as well. Even if this is a "demand" based price drop, everyone will pull their giant SUV out of the garage and gass it up thus increasing demand and prices once again. Quote Link to comment Share on other sites More sharing options...
LJ Posted October 29, 2008 Report Share Posted October 29, 2008 Oh don't get me wrong, I think it will shoot back up as well. Even if this is a "demand" based price drop, everyone will pull their giant SUV out of the garage and gass it up thus increasing demand and prices once again. Why do you think analysts expected a rise in gasoline inventories of over 900,000 barrels and it actually FELL by over 1.5 million barrels? Quote Link to comment Share on other sites More sharing options...
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