Prices falling

[Whitlock]

I have noticed that the prices of a lot of goods are falling gas is at 2.99 were 4 days ago it was 3.59.
Will oil companies  cut production soon to bring up the price?
Food prices are going down
Is this not a good thing?
I here China is having problems from the US not importing there goods.

[benevolance]

bought gas for $2.39 on Monday...I suspect it will go down a good bit by the week end as the price of oil has fallen  almost 10 bucks in the last week...By monday it might even be at $60 a barrel

[muldoon]

For oil production, it is divided up something like 85% nationals, 12% majors, 3% minors. 
The majors are Shell, Exxon, BP, and the like.
The minors are the million little oil companies like Constellation, Marathon and such
The nationals are Saudi Arabia, Mexico, USSR, Iran, Veneuzuela, and others. 

OPEC is about a dozen of the largest nationals and thus represent a large part of international oil production. 

I read that OPEC is expected to cut production quotas later this month to try exactly that.  I am not sure it will do much, as I understand it nearly every single one of the 13 countries in OPEC are in bad financial shape and I dont think turning off the pumps is quite as easy for them as some may indicate.  They need that money and must sell even if conditions are "low".  Keep in mind that most of them were pumping quite happily back in 98 when oil was 20 a barrel. 

For oil companies, I have not heard that production numbers are being cut. 

China has not imported gasoline for 2 straight months, they hit the wall the same time as everyone else.  I believe that's huge and it is a contributing factor. Some of the hedge funds that drove oil up earlier in the year have been destroyed - and literally sold contracts as they went bankrupted now forcing prices down.  Some companies have been served papers by CFTC for investigations of price manipulation and are now being ultra conservative.  Then theres the deflation argument to explain it too. 

[desdawg]

$2.89 here for gas now. As prices drop my depression lifts. We took quite a beating this past summer season. Grocery prices rose as the cost of transporting to the stores was up. I have seen stores that maintained the higher pricing even after their transportation costs should have been going down. I chose to shop elsewhere so Kroger lost some business from me at least with that tactic. And I suspect I am not alone in that.  Now it seems to be coming back into line somewhat. Once prices go up for whatever reason we are slow to see them come back down. I will be glad when this is over and we know what to depend on although I am sure it will be more expensive than it ever was in the past.

[Homegrown Tomatoes]

It is $2.27 around here nowdays.  It is nice not to have the pump automatically cut off at $75 for a change... I've only been filling up every 2-3 weeks, though.  My last tank of gas was at $2.49 a gallon.  Today I'll fill up again if the kids and I go meet DH for lunch.

[desdawg]

We seem to be in a time frame where the longer you can delay filling up the better for the pocket book. What seems like a good price today will be high tomorrow. That will end somewhere. For a while there is was better to fill up sooner before the next spike.

[MountainDon]

I don't have the time to investigate thoroughly, but here's a thought...

Over the course of a year, filling your tank every week or two, what difference does it really make?

[desdawg]

Maybe it does average out. I guess it depends on what you have in your pocket the day you are doing the filling and how much of it you want to part with that day. Or if you are using plastic how large a bill you want that particular month. No doubt I will use the same number of gallons but if I can pay less for them I want to do that.

[ScottA]

I'm saving about 12 bucks on a fill up from less than a month ago.

[glenn kangiser]

No matter what it is wise to keep your tank near full not only to cut condensation, but in case of emergency you are more prepared and mine has a squirrelly fuel gage so I set the trip meter at each fill up also and calculate where I should make it to.  In general the top half of the tank doesn't cost more to fill than the bottom half.

[muldoon]

I read that OPEC is expected to cut production quotas later this month to try exactly that.  I am not sure it will do much, as I understand it nearly every single one of the 13 countries in OPEC are in bad financial shape and I dont think turning off the pumps is quite as easy for them as some may indicate.  They need that money and must sell even if conditions are "low".  Keep in mind that most of them were pumping quite happily back in 98 when oil was 20 a barrel. 

http://www.independent.ie/business/world/russia-wont-join-in-opec-cuts-despite-chavez-pleas-1531055.html

No one can afford to slow the pumping of crude in any significant way.  The fear of selling today at low price is dwarfed by the fear of selling tomorrow for even lower.  And with the credit crises in full swing and each countries having to deal with insolvent institutions, high unemployment and shortages, they they need those FRNs today.. 

[Redoverfarm]

In general the top half of the tank doesn't cost more to fill than the bottom half.

Reminds me Glenn of people saying "Oh yes I get good mileage because I drove a half a tank and got X number of miles".  Not a realistic way to calaulate your MPG.  Mileage verses gallons is the only true way.  Deisel has me stumped though.  Gas dropping at a fast rate and deisel only pennies at a time.  But it has gone down maybe not at the rate of gas but groceries are still up.  They can't use the high prices as an excuse now.  Will have to come up with a new one that everybody will swallow.

[desdawg]

In general the top half of the tank doesn't cost more to fill than the bottom half.

That may depend on how quick you are to fill it with the price going down. We are now at $2.28 here and have been for a few days now. It costs more in the more populated areas like Phoenix and Casa Grande. Don't ask me why, I am just a simple country boy.

[Homegrown Tomatoes]

saw gas today for $1.78 gallon!

[apaknad]

$1.94/gal. this afternoon in so. central mi.

[glenn kangiser]

saw gas today for $1.78 gallon!

Is it pre-mixed, Homey?   I need some.

[MountainDon]

  

[glenn kangiser]

It was bad but I couldn't resist...

[lonelytree]

$4.29 per gallon for diesel in Anchorage yesterday........

[Erin]

saw gas today for $1.78 gallon!

Time to build some more SUVs!!
http://www.wpxi.com/automotive/17945476/detail.html

[desdawg]

$4.29 per gallon for diesel in Anchorage yesterday........

Better have a talk with Sarah. She has time for Alaska now.