Gas prices dropping sharply

They recently saw their biggest weekly drop since 2008, according to AAA.

By Kim Peterson Oct 24, 2012 6:11PM
The price of gas is plummeting and is likely to fall even lower by Thanksgiving, experts say.

The national average for a gallon of gas was $3.63 Wednesday, down 2 cents from the day before and 10 cents from a week earlier.

The more impressive drop came on Monday, when the price had fallen 12 cents in a week to $3.67. That was the biggest weekly drop since 2008, according to AAA's daily fuel gauge report.
President Barack Obama may find reason to celebrate. AAA thinks the average price per gallon will fall to between $3.40 and $3.50 when voters head to the polls on Nov. 6. By Thanksgiving, prices could fall even more, to between $3.25 and $3.40.

Is Obama pulling the strings behind the price drop? Probably not the Los Angeles Times writes. Crude oil is a global commodity, and the markets have much more influence on the price than the commander in chief. "Indeed, there seem to be very few tools in the presidential woodshed that can hammer down gas prices with any predictability or long-lasting effect," Ken Bensinger writes. "But presidents are almost always put on a very public hook when gas prices are judged to be high."Filling fuel tank - Corbis

So what's the reason for the price drop? Falling oil prices and more supply as refineries are coming back online. In addition, refiners are using cheaper winter blends, according to The Associated Press. And people are starting to drive less this time of year.

Still, the AP notes, gas remains very expensive, more so than it's ever been at this time of year. Last year, for example, gas was $3.46 per gallon at the same time.

And though we all may breathe a little easier at the pump, the falling price of gas is still alarming because it reflects broad concerns about the state of the world's economy.

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Tags: oil
712Comments
Oct 24, 2012 7:22PM
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Maybe folks are just driving less because they have another bad habit called eating.

Throw in supply side economics with refiners having to sit on unused product and naturally the price is going to come down. With big oil and gasoline having already bilked consumers with multi billion dollar profits for the last year or two, they can more than afford a drop in the prices.

But now that our economy has been raped to death it might be too little too late and big oil can now choke on it to the point of bankruptcy for all  I care. I guess they never thought about every consumer product being tied to the price of a gallon of fuel. Not to mention every other company looking for other ways to boost their net profits, like shipping jobs to China and using slave labor to keep their profit margins up. All at the expense of the American labor force.

So one must wonder how long it will be before Wall Street and the big Banksters see their dreams of Avarice come crashing down around their ears. Will they be able to face their disappointed families when they have to tell them no new cars this year for mommy and the teens, or no vacations to the Swiss Alps or Monaco. I say to those that hoard their millions in offshore accounts...

Does it help you in any way by not putting that money back into circulation? Or are so afraid that Joe Average is going to come calling at your country club looking to become a member that you would rather run him broke?

Oct 24, 2012 7:20PM
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  I wish people would quit talking about countries like Saudi Arabia and Venezuela only charging .25c a gallon. They are socialist countries that subsidize gasoline to far below what it's worth. The government here could give the oil companies $3.25 for every gallon sold to keep the prices at .25c but we aren't socialists. Don't bash Obama as a socialist then suggest a socialist program.
Oct 24, 2012 7:18PM
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We don't get our oil from the Middle East as they would like you to believe.  For this country, oil is produced in Alaska, North Dakota, and Canada.   Oh and by the way that Keystone Pipeline will not benefit anyone but the Koch Bros in Texas who will ship most of the oil overseas to the highest bidder.  Then like always, they will generate record profits tax free courtesy of the corrupt Congress who keeps giving them subsidies.   I've had enough of corporate greed!!!
Oct 24, 2012 7:15PM
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Where?  Still reg gas $3.799, disel $4.199 and propane $3.19.  Still over $1.25 than last years cost!!!!!
Oct 24, 2012 7:15PM
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So, why are these reporters stating the obvious.  Of course prices are dropping!  Duh.  Why don't they report on the scumbags controlling these prices?  Do they really expect us to believe that "it's the markets" dictating these prices, as if the markets were these self-running entities?  It's really annoying to hear that "gas is going up" or "gas is going down" as if we are too stupid to realize that.  Why don't they report something like this, "Petroleum company executives indicted for manipulating oil and gas markets".  One other point, why doesn't anyone ask why we Americans get charged world rates for gas that was created with petroleum drilled on American land?  Why are we getting screwed with our own product?  Why is the governemt allowing this?  And how is more drilling in the US going to bring prices down if the news and politicians claim that the "markets dictate the price of gas and oil"?  I can see how oil drilled in those terrorist countries cost so much, but own own oil?  Really?

 

Oh, and these petrol companies DO NOT NEED ANY governemnt subsidies WHATSOEVER.  Don't we get screwed enough by these basterds.

Oct 24, 2012 7:11PM
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Gas prices go down $.02 cents then go up $.20 cents or more, we are the only reason gas prices are so expensive there's no really need to continue WASTING our money in gasoline. If people would stop being so lazy and star walking and/or riding bycicles to do their local errands this gas prices increase will have no affect in our economy, instead of wasting money on gasoline you/we could use that money for more important things.

Oct 24, 2012 7:06PM
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What I would like to know is why any bad news, causes the price to rise overnight. But good news takes them a month to fall.  Way is diesel so much more then gas. To make diesel all they have to do is let crude oil settle out and skim it off the top, but to make Gas they need 100 million dollar refineries with cracking towers. Basically they are charging more for something that cost a quarter as much to make. What a ripe off. 
Oct 24, 2012 7:06PM
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  If the oil companies could manipulate prices don't you think they'd raise them to get the man who promsed to open up federal lands for drilling and ending environmental restrictions elected? They'd have them at $6 a gallon if they could.
Oct 24, 2012 7:05PM
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Not in Pennsylvania......average more like 3.75 to 3.80!!
Oct 24, 2012 7:04PM
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Please, Gas was nearly 4 dollars when Bush was in office. Get a damn clue!!

 

Oct 24, 2012 7:03PM
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Crude oil is a global commodity and not one is more easily manipulated by investors and oil companies.  Someone farts in Iran and the price of crude shoots up.  The fact that this is a commodity that is allowed to be priced on the futures market where speculators can drive up the price at will is tantamount to fraud.  This is one commodity that should be prohibited  from being bought and solt on the futures market.  The futures market has no bearing on current supply and demand.  And no president has the ability to do a damn thing about it. So no president can take credit for gas prices coming down nor should they be blamed for prices going up.  They have zero to do with it.
Oct 24, 2012 7:03PM
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high gas jprices are falling because of the new oil wells in MINOT & BISMARK NORTH DAKOTA.. THE ONE WELL NAMED BRAKKEN PRODUCES MORE OIL TODAY THAN ALL OF SAUDI ARABIA... Mobil Oil just purchased the well for over 50 BILLION... you can go to the LEADER TELEGRAM NEWSPAPER IN EAU CLAIRE, WI ON 10/22-2012 for the full story..

Saudia Arabia pays less than .25 per gallon.. where is our drop i AM NOT TALKING ABOUT A FEW CENTS i AM TALKING ABOUT DOLLARS.....

Look up the BRAKKEN OIL IN MINOT.. It is time to put a stop to the HIGH gas prices..

We are mining sand for the wells... They are putting in railroad tracks all over WISCONSIN to haul the sand to drill.

They are paying well over 100.00 per hour for the workers at the well. 

CHECK THIS OUT AMERICA THIS IS FOR REAL....

LET ME TELL YOU THIS HAS NOTHING TO DO WITH THE PRESIDENT, this well has already  being sent to the west coast, they have lines already built direct to the west coast.

.

Oct 24, 2012 7:03PM
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Who write these ridiculous articles? Prices plummeting? Our prices are down a few cents and are still way high compared to the price of oil...What does the news media  stand for anymore but just a bunch of Liberal bunk!
Oct 24, 2012 7:02PM
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 Gas prices always go down in the fall because of the winter blended fuel. Then in April they will shoot back up.
Oct 24, 2012 7:02PM
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Don't worry the prices will be go up again.  They are just playing with us.  The oil companies made record profits so it's time to show some charity to the common folk by lowering prices.  Big oil runs a a crooked monopoly, they are allowed to manipulate prices, supply and ship most of it overseas.  The economists tells us that their is record oil production occuring in this country.  If that is the case, then why isn't gas dropping below $2.00 a gallon?  Big oil has this nation with a rope around it's neck.  Anytime they want to jerk us around they just pull on that rope!

Oct 24, 2012 7:01PM
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You mean we dont have to go into Mexico to buy Gas anymore?

 

This has been going on since I was a Kid Gas dropping right before election time.. If you think the President doesnt have some kind of influence on this, I have some money trees to sell you.

Oct 24, 2012 7:00PM
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When in Tulsa on 10/20/12, noticed that gas prices for regular in most stations was 3.09 and some were lower and some higher.  Seems that most of the county is getting ripped off..

Oct 24, 2012 6:59PM
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...and right after the election they will be right back where they were last week if Obama get's re-elected.  Gas prices will never go down to what they were when he took office. He has pretty much said that energy prices will be going up. He wants them to go up. He didn't approve the entire Keystone pipeline, coal plants are being regulated out of business. He has said these things out loud! When will people start believing him?  He does NOT have Americans best interest at heart.  We need to show him exactly what we think of him in 2 weeks by voting him out! Besides who wants a president when Hugo Chavez, Fidel Castro and Putin of Russia are backing him. Doesn't that tell you everything you need to know?

Oct 24, 2012 6:58PM
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Getting really tired of the Obummer spin on MSNBC, can't wait to have a new president.
Oct 24, 2012 6:56PM
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Wow, that big of a drop? Whew, thanks for warning us, otherwise no one would have noticed. I guess no one was selling lemonaid today and this story made it to the headlines.

Are you people at MSN kidding me? in the begining of 2009 and late in 2008 the national price of gas was $1.84 per gallon.

Tell the real story of why a 100% jump in gasoline price is reasonable when refining costs stayed the same and the inflation adjusted price of oil is less now in 2012 than late 2008 early 2009.

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