Gasoline could drop 50 cents/gallon by spring

$2.21 here... getting close

 

Gas is $1.94 here even cheaper 30 miles south of here.

 

Got this the other day:

CHEAP now. I have to say, I never thought I would see gas under $2 again.

 

One problem with being a low-mileage (7,500/yr.) Prius driver -- I only fill up every 3-4 weeks.

My last fill-up was at $2.61, and I may not be due to re-fill for another week or two. Will the Shiek of Araby shut the tap by then?

 

The more they try to control the price through production cuts the more they're gonna drive down demand. The good news for them is that development and production from unconventional sources (tar/oil sands and hard-core offshore) will dry up very quickly has the price of light, sweet crude heads south. The Arab nations are going to shoot themselves in the foot.

 

Let me say something I never thought I'd be typing:

Malorn, you were right.

Gas hit $2.00 before it hit $5.00.

 

I saw it coming as well. I knew the economy was heading downward 4 months ago. Plus everybody is driving less and this is virtually the outcome. Even when the Arabs said they were gonna cut production gas fell even further in price. I hope it stays this way for a long time.

 

You never will again, the Saudi's are cutting back production to keep the price up.....and if it gets below $1.50 we will be seeing the return of the soup kitchens

 

Don't know what that means. But here is the latest, from today:

 

You hope a crippling global recession lasts a long time?

One thing already impacted by the drop in oil price is curtailment of domestic oil exploration and extraction. The Tar Sands in Alberta are now bleeding red

 

Malorn,
I hate to burst your bubble but you were wrong. The supply level and early recession predicted in this article forecasted a 50 cent drop of gas per gallon by the spring.
What we have here is a failure to communicate....
The market didn't see an early recession, the market, and all of us lambs (investors), experienced the virtual bankruptcy of the financial systems that occurred so rapidly that the term billion dollar bailouts is now part of the everyday news jargon. Financial institutions acted unethically and systematically. We never predicted the domino affect of failed so-called trusted institutions like AIG, Lehman, Merrill Lynch, Wachovia, just to name a few. And who can forget those sweethearts at Enron years earlier?
The Arab states controlling oil production didn't foresee this anymore than we did or the Asian and European marketplace. They probably just saw this as the american leaders allowing those nice corporations to gut us like fish. What we first viewed as an over-inflated real estate market was really the american public's first view of our lending institutions like Fannie May and Freddie Mac lending practices to over-inflate the real estate market and created money grabbing schemes and golden parachutes practices.
I did not see this in the article, BTW.
So Malorn, pat yourself for something else...like surviving this mess with the rest of us lambs. !

 

Is this official or just in some areas? It sure as hell hit $5 here after the $2 claim. And it hasn't hit $2 here by any means.

 

Let's not forget that when the American mortgage bubble completely burst, it not only wiped out ungodly amounts of investments here in North America, but around the world. Consider the panic in the UK over this, they are teetering on the edge

Considering how this collapse has barely even begun, I wouldn't be surprised if we have 50 cent a gallon gas in a years time. We could also have 40% unemployment, food riots, internecine warfare, etc etc

 

Well, at least I'm on the leading edge of something. Let me know if you see anyone hiring.

 

Thanks for the bit of wisdom, but in late 1982 I believe unemployment was almost 11% (maybe 10.8% ish) and there were no riots etc. I guess it's all in that last 4% eh?

 

I'm unemployed and I own a shotgun. Maybe I should start a riot? :madgrin: