Comments about ‘Oil prices drop; will gas follow?’

This is a huge boost to low income families, far better than even a tax cut becuase it makes impact today. To a family with an monthly take home of 2,000 a month, having an extra 20 to 30 dollars a week has real impact.

Lets hope it sticks.

Hopefully the decrease in the cost of oil will continue to drop making gas prices even lower However it is frightening to think that it could all change and we would be back into another recession.

Nope. The oil and gas markets are not free markets.

Two weeks ago I filled up at Costco in Bountiful. I paid $3.71 a gallon for premium. Today I put gas in at Costco in Murray. I paid $3.91 per gallon. This 20 cent per gallon increase is indefensible on any and all fronts. During the same time, both oil and gas futures continued to fall and inventories for both oil and gas increased.

There is no reason for gas to be as high as it is. I have been driving for over 40 years and it always amazes me that gas prices go up for holidays. They immediately go up when future markets indicate an increase, even though the future price is 3-4 weeks away, but when the futures market declines, the prices don't immediately go down. Go figure.

Fitz, I am nto one to defend the oil industry even though they are some of my biggest clients, but you need to understand that the oil Costco is pumping was ordered up to month ago on contract. It will take a little time for the net average price they paid has worked its way through the system so that the fuel at the pump reflects the new price the dealer paid. This is a very valid reason for the slow decreasing cost.

What is not explained by this though is the rapid rise in cost, because the same rules apply. When prices are going up, the fuel the dealer is pumping was contracted for up to month before, and their wholesale cost will rise later as the more expensive crude makes its way through the system. The net average costing will impact price faster than waiting for that actual crude to make its way to the pump, but it is nothing like what we see happening at the curb.

Why would gas prices decrease? It's not in the interest of the obama regime to have lower gas prices. If that were to happen then the economy would pick up and millions of people wouldn't have a need for government welfare and be able to function on their own.

I'm pretty sure obama will do what it takes to make sure all of his friends in the "green" business make their money on the backs of taxpayers. Since some of his biggest donors are "green" companies that are failing, yet obama keeps pumping billions into a failing worthless industry.

When oil prices dropped before Bush's election the Dems accused him of campaign manipulation. There must be different standards now.

It is 3.12/g in GA outside of Atlanta and 3.22/g in metro Atlanta.