What's up with gasoiline prices?

[fdcg27]

Ten days ago, on Wednesday October 17, gas in this area had fallen to $3.45 per gallon of regular, which seemed pretty good.
Gas prices have continued their decline, and we today filled two cars for $2.96 per gallon, and we saw gas elsewhere for as low as 2.93.
What's causing this rapid decline in the midwest, and are prices also falling elsewhere?
This seems to be as rapid a decline in gasoline prices as we saw in the autumn of 2008.
While the fall in pump prices is nice, the cause may not be anything nice.

 

[Cutehumor]

the Presidential election coming up. I don't want to sound political or anything

 

[matrass]

I would say the upcoming election. there was really no reason for it to be super high the last couple of months ( it usually goes down after Labor day but did not in my area ) right now we are paying $3.58 - $3.60 ... way to much for this time of year.

 

[LTVibe]

I hear prices are dropping fastest in the swing states.

 

[simple_gifts]

Quote:

there was really no reason for it to be super high the last couple of months


Plenty of documented reasons.

http://www.businessweek.com/news/2012-10...ot-s-dot-supply

 

[Dakota1820]

i agree the upcoming election lord knows obama doesn't want to be the next guy in the unemployment line! gas here was 3.06 but went back to 3.19 yesterday.

 

[OilNerd]

Prices have been falling here, but are still high. $3.849 (cash only) is the best in the area.

I'm waiting to hear if Hurricane Sandy takes out some pipeline or other excuse for prices to rise.

 

[HTSS_TR]

Gasoline price depends on supply and demand, it has nothing to do with election. The one that cause the price go up or down the most is the middleman/wholesaler who bid it up or down at mercantile exchange.

Gasoline price in California went up substantial 3-4 weeks ago because of supply problems with a fire at a refinery in No Cal, then power disruption at another refinery in So Cal, some station ran out of gas. That refinery went back to normal operation and supply is back to normal, therefore gas price went down steadily the last 10 days or so.

 

[The_Jeff]

The refinery issue sort of makes sense as the spread between a gallon of crude and a gallon of gas was way more than usual.

The flip side to "its election season" is that there are also always dark brooding types tugging on things to make gas more expensive, to draw your ire, and they ran out of excuses a week short!

 

[Warstud]

I brought up this same topic yesterday and mentioned the election being the cause and it was closed.

 

[mechtech2]

Originally Posted By: Cutehumor
the Presidential election coming up. I don't want to sound political or anything

This sure seems true. Lousier and lousier prices until a few weeks before a Pres election?

 

[xxch4osxx]

Originally Posted By: Warstud
I brought up this same topic yesterday and mentioned the election being the cause and it was closed.
Thats what happened to the thread. I was looking for it because I made a post in it and I couldn't find it today.

 

[fdcg27]

I might have been aware that we have a very tight looking presidential election coming in this country in a couple of weeks when I made the original post.
The problem with the argument that the upcoming election is bringing lower fuel prices is basic.
Cui bono?
I therefore don't see any sense in the argument that the election is causing producers and refiners, as well as other intermediaries to act in tacit collusion to bring lower gas prices.
Who has a more realistic line of reasoning?
Are we on the brink of yet another recession?
That's what brought the last major drop in prices in 2008.

 

[JHZR2]

I bought last night for 3.43 from a state with one of the lowest gas costs.

Interesting as I heard we might be in for a 50c drop.

 

[Trajan]

An election has nothing to do with gas prices. They've been up and down all year.

Too much tin foil hat stuff.

 

[friendly_jacek]

Isn't Ohio an undecided state?
Seriously, local gas prices went down lately, 20 cents or so in this very red state. Reasons: dollar spiked higher, oil spiked lowed. Oil production is high and we have 5 year record high oil storage. The gasoline should keep falling down all the way to the end of year (seasonality). When global recession hits USA in 2013, $2.50 gas is not out of question IMHO.

 

[AandPDan]

It's $3.81 a gallon in western MA for 87 octane.

 

[JavierG]

Originally Posted By: HTSS_TR
Gasoline price depends on supply and demand, it has nothing to do with election. The one that cause the price go up or down the most is the middleman/wholesaler who bid it up or down at mercantile exchange.

Gasoline price in California went up substantial 3-4 weeks ago because of supply problems with a fire at a refinery in No Cal, then power disruption at another refinery in So Cal, some station ran out of gas. That refinery went back to normal operation and supply is back to normal, therefore gas price went down steadily the last 10 days or so.

Plus we are now using the cheaper winter blend fuel a little earlier than usual.

 

[Vikas]

I distinctly remember that winter blend was used to justify higher gasoline prices at the pump in the past.

I am waiting until Nov 6th to fill up my tank. According to my tin-foil, gas will be $1.99 that day

anybody who really thinks that elections are causing the gas prices to drop is not playing with the full deck.

 

[Loobed]

Still about $4.20 here.