Credit for lowered gas prices

PO1 Private RallyPoint Member — Tue, 06 Jan 2015 14:43:09 -0500

Whom would you give credit for decreasing gas prices?

Response by LTC Private RallyPoint Member made Jan 6 at 2015 2:51 PM

LTC Private RallyPoint Member — Tue, 06 Jan 2015 14:51:48 -0500

Too many factors to be the result of one thing.

Response by SSG Private RallyPoint Member made Jan 6 at 2015 3:07 PM

SSG Private RallyPoint Member — Tue, 06 Jan 2015 15:07:14 -0500

All of the above plus the natural ebb and flow of the market... when oil prices are high, there is a lot of incentive to increase supply, when prices are low there is less incentive to increase supply which means demand will eventually outstrip supply and drive the price back up. Sustained high oil prices over the past few years encouraged corporations to expend capital to gain access to more resources. Now that all those additional supplies are in the market, there is no scarcity of supply which means prices go down.

Response by SFC Private RallyPoint Member made Jan 6 at 2015 3:20 PM

SFC Private RallyPoint Member — Tue, 06 Jan 2015 15:20:47 -0500

PO1 Private RallyPoint Member, I feel that current pricing for a barrel of oil and in turn the price at the pumps cannot be so easily summarized without examining global politics and complex economic influence of the markets. Trying to give credit to any politician, political body, or corporate entity for what is essentially the result of a free market is akin to thanking those same persons/groups/organizations for sunny weather.

The uber-condensed version can be read here (or just about anywhere else on the internet)- http://www.vox.com/2015/1/5/7493799/oil-prices-chart

or here- http://www.bostonglobe.com/business/2015/01/06/what-happening-oil-prices/w9lU1qsPJnQaTInpr31TqJ/story.html

Why oil prices are still dropping — in one simple chart

It's all about supply and demand. Or rather, expected supply and demand.

Response by CPT Arch Nissel made Jan 6 at 2015 3:32 PM

CPT Arch Nissel — Tue, 06 Jan 2015 15:32:59 -0500

Market

Response by CW5 Private RallyPoint Member made Jan 6 at 2015 7:25 PM

CW5 Private RallyPoint Member — Tue, 06 Jan 2015 19:25:32 -0500

Supply and demand. Plain and simple.

Response by LTC Paul Heinlein made Jan 6 at 2015 7:33 PM

LTC Paul Heinlein — Tue, 06 Jan 2015 19:33:35 -0500

Saudi Arabia. They are increasing production and lowering prices so they can get their market share back that they lost due to other markets being able to produce more (such as the US...through Fracking drilling methods). So they are lower prices/increasing production to drive the competition out of business (such as the US Oil producers....price of gas has to be around $70 a barrel for them to break even and I think currently it is down to $40 to 50 dollars a barrel). Once they do that, you will see them jack the prices/ reduce production back up and there will be much less competition to help stabilize the price.

Response by LTC Paul Labrador made Jan 6 at 2015 7:40 PM

LTC Paul Labrador — Tue, 06 Jan 2015 19:40:24 -0500

Putin. Some of this was aimed at hurting the Russian economy over his involvement in the Ukraine.

Response by SSG Private RallyPoint Member made Jan 6 at 2015 7:49 PM

SSG Private RallyPoint Member — Tue, 06 Jan 2015 19:49:41 -0500

OPEC. Think about it. I'll give you a hint. What legislation is in the works right now?

Response by Capt Richard I P. made Jan 6 at 2015 7:56 PM

Capt Richard I P. — Tue, 06 Jan 2015 19:56:02 -0500

The inviolable law of supply and demand.

Response by SPC Stewart Smith made Jan 6 at 2015 8:39 PM

SPC Stewart Smith — Tue, 06 Jan 2015 20:39:24 -0500

Market.... simple economics

Response by SPC(P) Jay Heenan made Jan 6 at 2015 9:24 PM

SPC(P) Jay Heenan — Tue, 06 Jan 2015 21:24:36 -0500

Oil is a commodity, so if POTUS wanted to take credit, he would of had to either lower the gas tax. Can't be a government agency. I think the closest answer would be a private company because it is a commodity. Once all of the companies stop messing around with hedges, we will probably see OPEC lower its production and the prices start climbing again...but who knows.

Response by SSgt Private RallyPoint Member made Jan 6 at 2015 10:20 PM

SSgt Private RallyPoint Member — Tue, 06 Jan 2015 22:20:01 -0500

Market forces!

Response by CPT Private RallyPoint Member made Jan 7 at 2015 12:39 AM

CPT Private RallyPoint Member — Wed, 07 Jan 2015 00:39:39 -0500

Oil companies are spilling oil like crazy so that the demand for green energy/electric vehicles will go down.... Therefore increase our demand for gas consuming vehicles.

Response by TSgt Jackie Jones made Jan 7 at 2015 12:51 AM

TSgt Jackie Jones — Wed, 07 Jan 2015 00:51:31 -0500

Me. I wrote an email and sent it to everyone I know. It said if you don't forward this to everyone YOU know, gas prices will drop. BOOM!

Response by PFC Stephen Eric Serati made Jan 14 at 2015 12:18 PM

PFC Stephen Eric Serati — Wed, 14 Jan 2015 12:18:16 -0500

America is now the leading producer of oil and shale which gives us more leverage on the price of a barrel.The credit goes to the President.To me this is good,because once we've used all those resources we will be forced to switch to alternatives.The sooner the better.

Response by SPC Christopher Smith made Jan 15 at 2015 1:50 PM

SPC Christopher Smith — Thu, 15 Jan 2015 13:50:52 -0500

I don't have references to back this, but companies like Shell, BP, and other major oil producing companies are the reasons for lowered gas prices, production and supply are way up and they were unable to keep the prices artificially inflated without causing a slowdown in drilling and production. This is not a politically influenced drop because many states like Virginia just passed higher taxes on gasoline because they thought they could capitalize on the higher pump prices.

Response by 1SG Private RallyPoint Member made Jan 15 at 2015 8:53 PM

1SG Private RallyPoint Member — Thu, 15 Jan 2015 20:53:40 -0500

The First Economic Law: Supply and Demand.

Too much supply plus speculators sitting on inventory hoping the price will go up equals spectacular decline in oil (and other commodity) prices.

Sucks to be you, Iran, Russia, Venezuela...

Response by SSG (ret) William Martin made Jan 16 at 2015 2:02 AM

SSG (ret) William Martin — Fri, 16 Jan 2015 02:02:30 -0500

This is nothing to do with the President. Saudia Arabia has increased production of oil to push Iran out of the business. That's all I really know but it helps along with fracking in the US.

Response by MAJ(P) Private RallyPoint Member made Jan 16 at 2015 2:06 AM

MAJ(P) Private RallyPoint Member — Fri, 16 Jan 2015 02:06:18 -0500

OPEC.

Response by SSG Gerhard S. made Sep 5 at 2015 11:52 PM

SSG Gerhard S. — Sat, 05 Sep 2015 23:52:24 -0400

Crude oil is a global market, and is determined by the market, which includes supply and demand, Futures markets, and to a lesser degree, regional and global insecurities.