By Scott

November 11, 2008 11:46 AM | Link to this

The question should be will OPEC and the oil companies allow the prices to dip much lower? OPEC is already suggesting to cut their production.

By Ricky

November 11, 2008 11:51 AM | Link to this

OPEC is a joke. I think that we should put some blue collar Americans in OPEC so we could lay the smack down on them.

By Hungry Jack

November 11, 2008 11:53 AM | Link to this

The other question is; will we see prices dip at the grocery store, now that the cost of transporting food has dipped?

By Get Realistic

November 11, 2008 12:10 PM | Link to this

I think the funniest thing I’ve heard yet is “Obama has been in office only a few days and already gas prices are dropping!”. Hey, Einsteins…he’s not in office yet…not to mention the fact that the president does NOT control oil prices.

By FriendlyFreddie

November 11, 2008 12:11 PM | Link to this

I wont be satisfied until gas is FREE. As far as I am concerned, the price can continue to decline until it goes all the way down to zero. That would be fine with me. The gas station owners and the oil companies have cheated the american people out of their hard earned money. When Katrina first hit, I discovered that there were complaints on over 6000 gas stations that were reportedly gouging their prices for excess profits. Im sure the same thing happed with Hurricanes Gustuv and Ike. So as I said before, until the price for gas goes down to zero, I wont be satisfied.

By ChasingGhosts

November 11, 2008 12:12 PM | Link to this

I am content to watch the prices of gas slide.

The other shoe is now dropping. Gas shortage….everyone resets their habits and now drives less… Exxon has the nerve to report record profits…and now they cannot get rid of the gasoline.

Fine with me. Let them suffer. We sure did for many weeks.

By Century 21

November 11, 2008 12:16 PM | Link to this

Gas Prices Going Lower????? Who cares about gas prices?

What about the property values along Pennsylvania Avenue in Washington, DC going LOWER in late January?

DC will be the new “Clayton County” of national capitals.

That once-thriving real estate market will be RUINED.

By GasLover

November 11, 2008 12:18 PM | Link to this

I have been driving my Hummer H2 like crazy now! I have noticed that truck sales are improving too! Let’s start driving again! Yee-Haw!

By makeeazymoneytoday.com

November 11, 2008 12:21 PM | Link to this

Gas prices will continue to fall as of this morning oil is trading at $59 per barrel at that rate the price of gas for late December delivery will be in the mid $1.50 range. But the lesson for America is to not take our eye off the balls and think that is ok to going back to our old ways of energy inefficency. i hope president obama keeps energy reform at the forefront and not let something as important as energy independence slip by.

and only when we show the Iran’s and other regimes that we no longer will be held hostage by there oil production then we will see teh true price of oil fall altogether because OPEC will slowly become obsolete. and teh billions that we spend on energy consumption could be put to use by the current or future presidents to help pay down on this huge mountain of debt we are drowning in

makeeazymoneytoday.com

By native

November 11, 2008 12:33 PM | Link to this

Just goes to show you that the spike in the price of crude the past 18+ months has had nothing to do with OPEC and their production rates. This was caused by greedy speculators financed by Big Oil and they would buy the futures contracts and watch the price increase. OPEC would increase production and fuel prices would continue to rapidly rise.

The government needs to reign-in the oil speculators!

Oh, and the price of food/groceries won’t go down because the vendors know that we’ll continue to pay the inflated prices so there is no need to cut prices and hurt their profits!

By native

November 11, 2008 12:35 PM | Link to this

Just goes to show you that the spike in the price of crude the past 18+ months has had nothing to do with OPEC and their production rates. This was caused by greedy speculators financed by Big Oil and they would buy the futures contracts and watch the price increase. OPEC would increase production and fuel prices would continue to rapidly rise.

The government needs to reign-in the oil speculators!

Oh, and the price of food/groceries won’t go down because the vendors know that we’ll continue to pay the inflated prices so there is no need to cut prices and hurt their profits!

By Mike K.

November 11, 2008 12:38 PM | Link to this

makeeazymoneytoday.com is correct-we need to continue our energy conservation. I would also add that the other reason why oil prices have dropped is due to China and India needing less oil than expected due to the financial situation.

Hungry Jack: We will see prices lowered at the grocery store eventually. Don’t forget that they didn’t pass all the price increase onto the consumers either when gas was over $4 per gallon.

By Nixon710

November 11, 2008 12:45 PM | Link to this

Some people just don’t get it.

The oil companies did not MAKE the record profits. The INVESTORS made the profits. Those who bought into the company made the money.

So before you spout off that the companies made too much money and need to give it back, go talk to the investors who rode it out.

By Nixon710

November 11, 2008 12:45 PM | Link to this

Some people just don’t get it.

The oil companies did not MAKE the record profits. The INVESTORS made the profits. Those who bought into the company made the money.

So before you spout off that the companies made too much money and need to give it back, go talk to the investors who rode it out.

By Anthony Campbell

November 11, 2008 12:54 PM | Link to this

With the way the economy is going, it looks reasonable to see gas at maybe $1.50, maybe even $1.00.

Of course if we have that, there will be likely massive unemployment, thousands of bankruptcies and the terrorist attacks will start again because all the OPEC nations will be broke.

It is obvious that the economic bailout is not working, and the same for the first and likely additional “economic stimulus packages.

Time for Mr. Obama to declare the US government bankrupt in its entirety, and lets start a new. We will never dig ourselves out of this mess.

By Dan

November 11, 2008 1:15 PM | Link to this

Of course the bailouts and stimulus packages aren’t working. They are simply politicians throwing candy to the ignorant masses. The federal government has little to do with the economy, in general their impact is whether or not they harm it more or less, and that is highly correlated to their level of involvement. They compel lenders to make bad loans, and poof housing crisis, they inhibit the ability for nuclear power and domestic drilling and poof oil dependence. This country has and is the economic power (yes it still is in virtually every measurable category) because the gov does not interfere as much as in other industrialized nations.

By Anonymous Coward

November 11, 2008 1:17 PM | Link to this

Hey FriendlyFreddy, if gas stations were allowed to charge what the market would bear instead of stupid price gouging controls that are in place we wouldn’t have had the gas shortages we’ve had recently. Think about it. Oh wait…

By demwit

November 11, 2008 1:21 PM | Link to this

Of course they are…, not that supply and demand have anything to do with it.

By Fred

November 11, 2008 1:23 PM | Link to this

Wholesale oil prices started dropping the day after Bush lifted the executive ban on offshore oil drilling. It accelerated after Congress let their ban expire. Just the possibility of increased supply sent the speculators elsewhere. That’s the way commodities work.

If Obama and the Dems reverse either of those decisions, watch prices climb again.

By MotherTeresa

November 11, 2008 2:00 PM | Link to this

Whats amazing about the gas prices falling is that the airlines have still not lowered their high ticket prices as well as their extra costs to check bags in or carry bags onto airlines. These additional charges were added when the fuel costs were high. Now that the fuel prices have dropped back to reasonable levels, you would think the airlines would be honest enough to reduce their ticket prices back to where they were when gas was 1.98 per gallon. Also you would have thought the airlines would also waive the additional charges for each additional bag, but they wont lower prices because they are enjoying record profits and since they have gouged and cheated people out of their money, they will continue to do so until federal authorities, congress or the president has to step in and stop their dishonesty.

By Gary

November 11, 2008 2:11 PM | Link to this

Another reason that the oil prices are falling is because the dollar is getting stronger. Oil is purchased overseas on the wholesale market. If the dollar is strong against other currencies, then the price will go down because other nations are buying with the U.S. dollar as opposed to the Euro.

By Dan

November 11, 2008 2:13 PM | Link to this

Mother T Why in the world would you trust a politician to help you??? (not they have the constitutional authority to do so anyway) At least business has competition to keep them honest If airlines charge too much people won’t use them and they will lower the price or go out of business. And actually airlines are struggling, not enjoying record profits. It is this kind of economic ignorance that astounds me, and quite frankly that politicians exploit

By DJ

November 11, 2008 2:50 PM | Link to this

i believe about half the “gas price issue” is related to market forces and half to “shenanigans” on the part of the oil industry. with “friendlies” in the white house for eight years, those companies knew they would not be subject to much scrutiny or regulation. with the reigning cabal on their way out, those same companies have to shape up, just a little.

Does anyone (besides the right-wing apologists) actually believe the steady decline in gas prices during the run up to the 2004 AND 2008 elections were just coincidental market moves? PU-LEEZE….

By Wow

November 11, 2008 3:05 PM | Link to this

NOTE - THERE’S NO SUCH THING AS PRICE GOUGING. If a gas station tries to charge $30 a gallon, some people will yell “PRICE GOUGING!!” Other people will alternative travel arrangements. It’s called supply and demand people. If you have tickets to a concert that is sold out and decide not to go, you sell them, right? If this concert is sold out and thousands of people still want to go - you can sell those tickets for WAY above their value, right? Supply and demand. If you asked $10 million for those tickets - no one would pay it. You have to find that equilibrium where consumers will pay your price.

Same with gas. At $4.09, people started carpooling, riding buses, MARTA, actually walking. Demand goes back down - prices go back down.

IT’S NOT PRICE GOUGING. If you don’t like the prices - don’t pay them. SPEAK with your dollars.

By TinkerBell

November 11, 2008 3:10 PM | Link to this

The Airlines have continued to put the S-Q-U-E-E-Z-E on the american peoples pocketbooks.THERE IS NO REASON ON EARTH WHY AIRLINE PRICES SHOULD REMAIN HIGH. Quite frankly, the Airlines are taking advantage of the american people and are some of the prime culprets as to why the economy is so bad. If the Airlines would lower prices and charge fair prices now that gas prices have fallen, then many american families would NOT be losing their homes.

By Dan

November 11, 2008 3:37 PM | Link to this

Psst tinker bell most of the famlies that are losing their homes are doing so because they didn’t get rid of their $35K car not because they paid an extra $100 for a plane ticket. Course even given the level of economic awareness on this blog that post has to be a joke right, please tell me it was tongue in cheek please

By Kevin

November 11, 2008 3:44 PM | Link to this

I agree with Wow. This is all about supply and demand.

I personally made a commitment to myself after the $4.50 a gallon point to change my habits. I’m sick of paying more and more money to terrorit nations that hate us and oil companies whose execs wipe their butts with $20 bills.

So I drive less. I work from home two days a week and I group my errands together. Quite literally- I purchase about 60% of the amount of gas per month that I used to. It’s a start. If everyone made little changes like this, we would cut our addiction to oil.

By cnote

November 11, 2008 4:14 PM | Link to this

Since they took a great bit of the blame, I think you’ve got to give credit to George Bush and Cheney for bringing gas prices down.

By Chaz

November 11, 2008 4:29 PM | Link to this

Yes, now it can be told. George W. Bush raised gas prices to $4.50 a gallon and arranged for gas shortages all over to make sure the Republicans were even more popular than they already were in this election year.

Conspiracy looneys. It’s like this: use less gas + make more oil = lower prices. Also, independence from foreign despots.

By Zach, MD

November 11, 2008 4:47 PM | Link to this

I have GAS

By Glen

November 11, 2008 4:51 PM | Link to this

The wife and I cut back on our driving, where we could, when prices spiked back in 2005 and have kept the miles to a minimum since.

As for the prices dropping before elections, it has more to do with the supply and demand for fuel.

The summer drive season ends, demand for electricity goes down as people run A/Cs less, so the the demand for fuel goes down. If the winter starts out harsh, and people up in snow country need more heat, you can bet the fuel prices will go up with the demand for heating oil.

Anyone who thinks the “steady decline in gas prices during the run up to the 2004 AND 2008 elections” was anything other than natural market forces is truly ignorant of macroeconomics.

As to the comment about food prices going up because of fuel driving up transportation costs but not coming down, most stores sell tons of 20 oz bottles of Coke for $1.30 - $1.49 while a 2 liter is available for $1.50 or less. Prices never go higher than what the market is willing to pay.

As other smart folks have said…voter with your feet and wallet!

By Donna P.

November 11, 2008 5:47 PM | Link to this

I was so excited to see the $1.94/gallon at Murphy Oil near the Wal-mart in Suwanee. I couldn’t believe it was below $2.00!! Yippee!!! I don’t know what I will do if it goes to $1.50. Will hell be freezing over soon?

By Gary

November 11, 2008 6:42 PM | Link to this

I told my wife a little over a year ago the by the day of the presidential election the gas prices would have dropped down to what they were almost 3 years ago (2005). She actually goes around quoting me telling everyone that I stated that fact. The reason it’s dropping is that the oil companies have had their ride. They know they’ve been raping the public for awhile, hence the recent report that Exxon reported an all time company high Profit! I think they also had a hunch about the way the election was going to go. The prices are dropping back to what they should be because they don’t want any ramifications by the time January 20th rolls around, ya know that crazy stuff like price freezes and senate investigations and inquiries etc… Plus they really want us to put the alternative energy issue aside and keep using their product. Because once a great alternate energy source is generated and we start using it they lose their financial foothold and well being that they have enjoyed for all of these years. Greed like everything else drives the world and they are still in the drivers seat.

By Flirt and Squirt

November 11, 2008 7:19 PM | Link to this

I am so sick of those OPEC-kers I could just puke.

By S Rhodes

November 11, 2008 9:01 PM | Link to this

Of course it will come down. As soon as enough people loose their resolve for conserving and forget about alternative fuels, wheee! back past where we were after Ike. People have short memories for this sort of thing ususally. High prices and a cooling economy showed what cutting consumption can do- and how relatively quickly. The ususal suspects still are “poo-pooing” conservation measures. The US has got to develop a comprehensive environmentally sound energy plan for our own political and economic security.

By chuck

November 11, 2008 9:17 PM | Link to this

FWIW, gas prices go down every fall (not just election years) when the summer driving season ends and they switch off the low-sulphur summer blend gasoline.

By seriously?

November 11, 2008 11:28 PM | Link to this

Blogs like this make me want to buy an island. Where the sky is blue and market is free not only in name but actual practice.

By gman

November 12, 2008 5:09 AM | Link to this

Enjoy it while you can, one of the first acts of Obama mania will be to reimpose any new off shore drilling as well as drilling in anwar and Utah. So couple this with another 1 million barrel a day cut by OPEC by the end of this year, there’;s but one way for oil and gas prices to go, Up, should be $3 by summer and pushing $4 within 2 years. We have abvery narrow window to ramp up our domesttic production and go full speed ahead with alternative fuel R&D.

By catlady

November 12, 2008 6:07 AM | Link to this

Gas w ill go sharply higher in Januaary so that it can be blamed on Obama. Bush’s friends are very good at manipulating prices to “prove” their point, Such as when it suddenlhy went down when off shore drilling was authorized. No drilling would happen for years, but to show how much it was “meeded” they maniulated the prices. When Obama won the nomination, they went up sharply. Wake up, people!

By Bill

November 12, 2008 7:06 AM | Link to this

Ok, so we are going to go through the whole cycle again. How about if we add a per gallon tax equal to however much the price falls below $2.50. That is still a pretty reasonable price, but high enough to make people think about how much they drive. The revenue can go to public transportation and alternative energy. We can never go back to the way it was. It doesn’t matter how badly we might want that.

By When?

November 12, 2008 7:41 AM | Link to this

Try this on for size….We are spending billions in Iraq each month to rebuild the country, yet we are still BUYING oil from them. Why are we not making them pay back some of those billions in oil??????? Just a thought.