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The Godfather · Aug 31, 2006, 07:54 AM

"I'd say $2 to $2.50," said Tom Kloza, chief oil analyst at the Oil Price Information Service. "Once you get past Sept. 15, it's really a downhill game."

Gilman said retail gasoline prices of around $2 a gallon by Thanksgiving were certainly possible, although not likely.

Price of gallon of gasoline seen dropping - Aug. 30, 2006

Gas under $2? Don't hold your breath (Page 1 of 3)

If true, it could mean that house materials and labor will have the potential to go down sharply. It could also mean that hybrid cars will hit a sales slump, because of those sitting on the fence will lean to the compact car offers.

Could 6 years of gas price hikes be reversed in 1 year?
CNN.com - US - How did gas get to be $2 a gallon? - March 15, 2000

Do you believe these predictions?

Dakar · Aug 31, 2006, 07:57 AM

I don't see it going under $2 again. But otherwise, this is nice.

BTW, I still have trouble believing it was a few years ago (just before the Iraq war?) that oil was breaking records at $40 a barrel, and now we're excited it's under $70. Insane.

ebuddy · Aug 31, 2006, 08:42 AM

Originally Posted by Dakar

I don't see it going under $2 again. But otherwise, this is nice.

BTW, I still have trouble believing it was a few years ago (just before the Iraq war?) that oil was breaking records at $40 a barrel, and now we're excited it's under $70. Insane.

I'd add that my concern would be a bogus euphoria leading to additional SUV and truck sales only to be stuck in a year or two when gas prices sky-rocket again.

Personally, this is bait I'll not be biting on.

Sayf-Allah · Aug 31, 2006, 09:06 AM

Don't worry about it. Further conflict with Iran and continued Israeli aggression/defensive actions will drive the price up within 6 months.

The Godfather · Aug 31, 2006, 09:16 AM

Well, I hope so. I want oil to price itself out of the market, and alternative energy sources to flourish already.

Sayf-Allah · Aug 31, 2006, 09:26 AM

Originally Posted by The Godfather

Well, I hope so. I want oil to price itself out of the market, and alternative energy sources to flourish already.

That's not gonna happen until every possible oil field has been exploited. Unfortunately. The heads of the oil companies will make sure the US government calms down every now and then to get the price back to "normal". And at the same time pressure the US into trying to calm Israel.

That cycle will go on until one of two things happen.

1. The Muslim nations have enough and simply stop selling the US oil (but the puppets ruling in the Muslim world aren't likely to do that any time soon).

2. Oil fields are fully exploited.

So be prepared to see the oil price go up and then down for the next 10-20 years.

Landos Mustache · Aug 31, 2006, 10:07 AM

Isn't Canada the US's largest oil supplier? If so why does a war in Iraq bring the cost up so much?

Dr Reducto · Aug 31, 2006, 10:08 AM

Originally Posted by Sayf-Allah

Don't worry about it. Further conflict with Iran and continued Israeli aggression/defensive actions will drive the price up within 6 months.

How?

Only 3 of the top 15 petroleum suppliers for the US are in the middle east. Saudi Arabia (#3), Iraq (#7, behind Nigeria and Algeria), and Kuwait (#15, behind the Netherlands)

Dr Reducto · Aug 31, 2006, 10:09 AM

Originally Posted by Landos Mustache

Isn't Canada the US's largest oil supplier? If so why does a war in Iraq bring the cost up so much?

Yes. Canada is the largest US supplier. And I would assume the Iraq war mainly increased prices due to market speculation.

Sayf-Allah · Aug 31, 2006, 10:24 AM

Originally Posted by Landos Mustache

Isn't Canada the US's largest oil supplier? If so why does a war in Iraq bring the cost up so much?

Market speculation and decreased availability of oil on the market. Both drive the price up.

That and the fact that other producers use every excuse to sell their oil at a higher price.

Sayf-Allah · Aug 31, 2006, 10:33 AM

Originally Posted by Dr Reducto

How?

Only 3 of the top 15 petroleum suppliers for the US are in the middle east. Saudi Arabia (#3), Iraq (#7, behind Nigeria and Algeria), and Kuwait (#15, behind the Netherlands)

As mentioned above.

Muslim states provide about 30% of the oil the US uses IIRC. They therefore are able to influence the price as they wish.

Lateralus · Aug 31, 2006, 11:27 AM

The day I bought my car back in November of '05, gas was $1.89. It topped out at $2.99 a few weeks ago and now it's down to $2.55.

Here's to hoping for another visit to $1.89.

hickey · Aug 31, 2006, 11:31 AM

I'm not looking forward to driving again. that's one huge advantage of living in the city, you dont have to drive anywhere.

smacintush · Aug 31, 2006, 11:50 AM

Originally Posted by Landos Mustache

Isn't Canada the US's largest oil supplier? If so why does a war in Iraq bring the cost up so much?

Because the oil bidders are a bunch of scared little girls who freak out every time something happens in the ME.

Dakar · Aug 31, 2006, 11:56 AM

Originally Posted by smacintush

Because the oil bidders are a bunch of scared little girls who freak out every time something happens in the ME.

Ding ding ding

Landos Mustache · Aug 31, 2006, 12:26 PM

Originally Posted by smacintush

Because the oil bidders are a bunch of scared little girls who freak out every time something happens in the ME.

I don't think so. I think they know it is a great excuse to drive the price up and nobody can say anything.

smacintush · Aug 31, 2006, 02:03 PM

Originally Posted by Landos Mustache

I don't think so. I think they know it is a great excuse to drive the price up and nobody can say anything.

The price isn't determined by the seller, it's determined by the how much the buyers are willing to bid for it.

placebo1969 · Aug 31, 2006, 02:21 PM

Thank you, President Bush for the lower gas prices. I know that when they went up last year, many people blamed you, so now that they're going down again, it must be your influence. Thanks!

Kevin · Aug 31, 2006, 04:45 PM

Bush had nothing to do with it either way.

It's $2.37 up the road.

Apfhex · Aug 31, 2006, 04:58 PM

It hit $2.99 9/10 (

) here last week. No idea what it is today.

placebo1969 · Aug 31, 2006, 05:42 PM

Originally Posted by Kevin

Bush had nothing to do with it either way.

I know.

I was mocking those who blamed Bush.

NYCFarmboy · Aug 31, 2006, 05:57 PM

Originally Posted by smacintush

Because the oil bidders are a bunch of scared little girls who freak out every time something happens in the ME.

Orion27 · Aug 31, 2006, 06:59 PM

Here we go again, Friedman will start calling for gas a tax again. Hey, now the Democrats can revive that old campaign theme.

Landos Mustache · Sep 1, 2006, 10:54 AM

Originally Posted by smacintush

The price isn't determined by the seller, it's determined by the how much the buyers are willing to bid for it.

What choice do people have?

Orion27 · Sep 1, 2006, 11:32 AM

Originally Posted by Landos Mustache

What choice do people have?

Actually, not much. And it's not the fault of big oil. Nothing is more confusing to me thant the failure of American auto makers to deliver the goods. I nice sporty turbo diesel to compete with the Volkswagen Jetta at 44mpg.