Irrational Behavior Drives Gas Prices?

[celtic_crippler]

With the price of a barrel of oil down to $94 why are we still paying over $4 a gallon?

Experts say it isn't Ike's fault.

With gasoline, scarcity is a false perception, Unnava said. There is ample gas in the United States, even after Ike delivered 110-mph winds to Galveston and Houston, an area that's home to a significant portion of the nation's oil refineries.

The whole story -> http://www.cnn.com/2008/US/09/15/ike.gas/index.html

 

[Kreth]

I heard a piece on NPR a while back that said futures trading had a lot to do with high gas prices, by creating artificial demand.

 

[Bob Hubbard]

Price is high, less people drive. Cheap gas = more people driving.

 

[MA-Caver]

I think it's because the American public is still stupid enough to keep paying whatever is on the boards. We did pretty good NOT driving when gas prices were rising prior to Hurricane season but somehow slacked off when gas prices started dropping, almost as if we were relaxing our grip on a hold on the industry and they broke away and started running with it.

 

[tshadowchaser]

If you have to travel to get to work, buy food, etc. then you will pay what is being asked. Staying home more and walking or riding a bike when you do not have to go great distances is a good way to cut down on spending but most of America would rather drive a hundred yards than walk it

 

[celtic_crippler]

Lower gas prices = a serious boom in the economy! Something we could really use right now.

A lot of people, especially in more rural areas, do not have any choice but to drive their vehicles to get to work. There is no public transportation and walking or riding a bike those distances just isn't feasible.

So they cut out "other" driving...like going shopping. That is, even if they could afford to shop....which only further negatively impacts the economy.

What do you think will happen when gas prices are the same as the minimum wage?

 

[arnisador]

I heard a piece on NPR a while back that said futures trading had a lot to do with high gas prices, by creating artificial demand.

I don't buy it! Speculation is good for the market.

 

[Archangel M]

I cant understand how the DOD can allow such a vital strategic infrastructure as refineries to be concentrated in one area. Or allow so much refining to be concentarted in so few refineries.

In the "old days" there were more refineries; so when storms threatened it didnt affect gas prices so much. In the spirit of doing more with less, the Oil companies knocked down a bunch of them and expanded the ones they had left, which leaves us with a huge chunk of refining capacity confined to a few spots that are always in the path of potential hurricanes.

Its a stupid move. Im as big a "free market" supporter as you can find, but such a vital resource as fuel needs some gvt oversight IMO. Simply from a national defense standpoint.

 

[celtic_crippler]

There's no that many refinaries down in Texes! Especially compared to the number shut down by Katrina.

There's no doubt about it....we're the victims of price gouging and nobody is doing anyting about it.