On comparing recent drops in the price of oil to expected drops in gas prices

Submitted by persondem on Sat, 08/13/2011 - 12:45pm

So the most recent peak price of oil was $110 a barrel with a peak national average price for gasoline at the pump right at $4.00 per gallon. The price of oil recently dropped below $80/barrel and has been trading this past week in the mid 80's. 110 to 85 is a 23% drop. Oil is bought a month or two ahead of time so that means that gas should eventually drop about 23% as well, right? That would mean that the price of gas at the pump should be about $3.15 a gallon just in time for all those Labor Day vacations.
Who thinks that will really happen? Place your bets and take your chances, but remember you are playing against the House .... of Big Oil. Somebody care to remind me just why the oil industry still needs those billions in federal subsidies every year?

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Yeah, so much for "free enterprise" or "reacting to the market".

Submitted by denno on Sun, 08/14/2011 - 6:07am.

And I haven't seen too many , or any, expose' shows on our rigged system. And as usual, Eric Holder's DOJ is too busy chasing those Calif. potsmokers! I'm sure Fox news will have something on their network one of these days!

So oil is still trading in the mid $80's and

Submitted by persondem on Wed, 09/07/2011 - 9:24pm.

gasoline only dropped about half as much in percentage. Of course I am not the only one who has noticed this. Lots of dollars are heading offshore and Exxon-Mobile will likely have another disgustingly great year.

Environmental Defense Fund

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