Posted by MoparNorm on Sunday, September 10, 2006 at 4:53PM :
In Reply to: Re: Gas prices continue to decline (it's artificial, I think) posted by Glenn Reid in CA on Sunday, September 10, 2006 at 12:45PM :
How have you been?
Several factors, in addition to the normal election year bump, are the absence of any major hurricane activity in the Gulf this year, high prices have mitigated vacation travel and more fuel efficient vehicles are being sold. A slowing economy adds up to decreased demand which is increasing supply.
Prices will stay low until colder weather hits. Supply and demand is only part of the equasion these days, speculators buying up futures create price pressure, right now the price per barrel is down because there has not been the normal amount of hurricanes that the speculators were counting on to drive down the supply. One bad day of nuke testing and saber rattling by Iran and you'll see the price shoot up.
MN
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