How low can it go?

[zrath]

On October 25th 2008, I took this picture at my local cheap Arco gas station and posted it to LJ.



I was back at the same station tonight to get some gas.
This is what the prices were:



The price dropped 78 cents in 3 weeks and 4 days.
Gooooooooolly!!!

In the post from October 25th, somebody commented that prices would be "going to go back up soon".
I should have asked for a definition of the word "soon". :D

Comments

[paka.livejournal.com]

Originally I was all cynical and paranoid ("oh, it's just oil companies trying to make sure consumers vote the way they want") but the prices kept dropping. The only thing I can think that might be doing this is maybe a batch of Saudi oil hitting the market cheaper now that they have left OPEC. Would you know, or think, anything about this?

[zotcoon.livejournal.com]

The trading price of crude oil (per barrel) dictates the price of gas. The reason we saw crude go so high (up to $147 per barrel) is due to high worldwide demand and people flipping oil purchase contracts just like they were flipping houses (It was last ditch hail Mary attempt to make quick money after the housing market had collapsed).

Now that the oil purchase contract flipping scheme has burst and we are in a worldwide recession, demand gone WAY down WAY fast. Currently oil is trading at $55 per barrel.

OPEC will try to raise oil prices, but will fail for the time being because there is just not enough worldwide demand.

[zrath.livejournal.com]

Thanks for the input, I was wondering about that myself.

And nice icon, aziz. :)