Gas...they're practically giving it away!

[I.B. Washincars]

I paid $2.35 today in Lebanon, Ky. Whouda thunk?

What are you paying where you are?

 

[rph9168]

$2.55 in Atlanta. Two weeks ago it was over $4 when gas was scarce. It is still going down daily. Last week it was at $2.89.

We are still getting screwed. Just not as much as before.

 

[Fatboy769]

$2.59 in East TN. RPH is right, but at least now they're using some vaseoline.

 

[MEP001]

It's been $2.60-$2.70 here in central Texas for about two weeks now. Three weeks ago it was right at $4. Diesel is still around $4 a gallon, but it was around $4.70 at one point.

 

[soapy]

We are still at $3.15 per gallon but it is dropping. In the spring everyone was blaming high gas prices for the lack of business at carwashes. WIth this gas price drop is everyones business just going through the roof based on the lower prices? I am not seeing a big rebound in business.

 

[jfmoran]

Gas prices dropping has good and bad news associated with it. The first is that it means the dollar has gained some strength driving down the per barrel cost of oil, but the bad news is that less demand has also driven down the price, indicating that we are probably headed towards a worldwide recession. Which in the long run will not be great for our economy.

 

[Keith Baker]

I'd be glad to have last summer's gas prices back if I could have last summer's portfolio back. I've lost more money in the last 3 month's of investments than I've made in some years working.

 

[teamplex65]

$1.89 in des moines, IA today.

 

[rph9168]

Down to $2.07 in Atlanta. With gas prices down and favorable weather conditions in our area, volumes are still down from 15-30%. They just announced that Circuit City is closing all 17 locations in the area. Georgia is reported to have the largest loss of jobs outside of Michigan and Ohio. I guess the economy appears to have the greatest effect on car washing of those three factors.

 

[I.B. Washincars]

I filled up today for $1.97. Saw it at another station for $1.95.

 

[Kris Wolf]

I am seeing it as low as $1.99/gal here.

 

[MEP001]

We're also seeing gas around $2 a gallon. It was nice to be able to fill up my car for under $30 again. It figures though, I just got rid of my full size truck for a used S10 with a 4-cylinder.

 

[Ben's Car Wash]

bad sign. China's oil consumptions is at 1984 lows. A recession in full swing. First law of economics... suplly & demand. Demand has dropped globally dropping the price of gasoline. This is bad. Good for us to fill up... but overall a tell-tale sign of the economy.

 

[I.B. Washincars]

bad sign. China's oil consumptions is at 1984 lows. A recession in full swing. First law of economics... suplly & demand. Demand has dropped globally dropping the price of gasoline. This is bad. Good for us to fill up... but overall a tell-tale sign of the economy.

What does China's oil consumption have to do with us?

 

[Ben's Car Wash]

http://blogs.wsj.com/environmentalc...predicts-crude-at-60-due-to-chinese-slowdown/

From the Wall Street Journel!

{snip}
If oil has further to fall, look no further than China and its economic woes.

Downshifting (AP)
Dismal U.S. economic data—GDP contraction in the third quarter, cratering consumer and manufacturing confidence, Detroit’s terrible October—is keeping oil in the mid-$60s right now. But the wildcard in global oil markets is China—and a looming economic slowdown there threatens to send global oil consumption backward next year for the first time since 1982.

That’s the take from Credit Suisse, which just slashed its 2009 crude oil forecast for the second time in a month. The bank now expects $60 oil next year, down from its recent estimate of $75, and oil at just $80 a barrel in 2010. That’s because China’s economy—especially the workshops on the coast—is taking a beating from the global economic slowdown, and that will elminate any fresh Chinese demand for oil next year.




Read the rest.

 

[Ben's Car Wash]

http://www.bloomberg.com/apps/news?pid=20601091&sid=aGWybKoSH7BY&refer=india

Nov. 6 (Bloomberg) -- Crude oil fell for a second day, tracking equity prices, on signs that demand for fuel will be eroded as the global economy slumps.
Crude fell as much as 2.5 percent in New York as global stock markets dropped. The MSCI World Index lost 2.5 percent in London while Europe's Dow Jones Stoxx 600 Index declined 4.1 percent. Gasoline supplies in the U.S., the world's largest energy user, unexpectedly rose 1.12 million barrels to 196.1 million barrels last week, an Energy Department report showed.

``There still seems to be a high correlation with equities, which seem to be a clear indicator for the state of the economy, and the crude price,'' said Andy Sommer, an analyst with HSH Nordbank in Hamburg. ``It looks like we are sticking in the range of $60 to $70 a barrel.''

Crude oil for December delivery declined as much as $2.05 cents, or 3.1 percent, to $63.25 a barrel on the New York Mercantile Exchange. It was at $63.57 a barrel at 12:35 p.m. London time.

Crude also fell as the dollar rallied in response to an interest rate cut announced by the Bank of England. A strengthening dollar has tended to coincide with falling oil prices, as commodities lose their appeal to investors as an inflation hedge.

Oil prices, which have tumbled 56 percent since reaching a record $147.27 on July 11, are down 34 percent from a year ago. Yesterday, futures plunged 7.4 percent, the biggest drop since Oct. 10.

Financial Crisis

The worst financial crisis since the Great Depression has curbed demand, dampened commodities prices and led to a 13 percent decline in the Reuters/Jefferies CRB Index of 19 raw materials in the past month

 

[Ben's Car Wash]

this is what China has to do with it. Our Economic slow down has caused people to buy and drive less. This has caused a global recession including China to 1982 consumption lows. this is "supply & demand". While it is good to see price of gas low.... it is a sign of a SICK ECONOMY! Higher prices would mean 2 things.... people have cash (which they don't) to spend and that oil is in balance globally (not falling as winter demand aproaches). Higher oil/gas prices would also stimulate new investment in "alternative" fuels faster, with prices low, consumers will be "lulled back" into thinking that "cheep gas is forever"! It's transient.... even if the economy stays slow for 2 years oil will go back up in 6 -12 months as nations seek comodities (again) for safety. To stabilize gas and keep it "reasonable, we need a steady "alternative" source and a mix of vehicles to lessen our dependance on fossil fuels.

"giving it away" is a tactic for marketing.... not a long term strategic policy!

 

[I.B. Washincars]

Won't dropping oil prices free up more $$$ for the average Joe to spend elsewhere, thus stimulating the economy?

 

[Ben's Car Wash]

And it looks even WORSE.

http://ap.google.com/article/ALeqM5i5TtajgUpSm7KY5jf-lCJGHBB-tAD948R6I82

The slowdown, which was sparked by a credit crisis that began in the U.S. last year, shows signs of spreading across the world. Credit Suisse on Monday cut its forecast for growth in China's oil demand next year to nearly zero from 4 percent on the back of lower economic growth forecasts.

"There are two forces working on the oil price," Moore said. "One is fear of weaker consumption and the other is OPEC cutting output to wind back surpluses in the market."

The Organization of Petroleum Exporting Countries said last month it would cut output quotas by 1.5 million barrels a day along with a 520,000 barrel cut announced earlier. Venezuelan Oil Minister Rafael Ramirez has said OPEC, which controls about 40 percent of world crude oil production, may slash production by at least 1 million barrels daily when it meets next in December.

"It's not yet clear that OPEC is disciplined in cutting production," Moore said. "Compliance will be a key issue going forward."

But JBC Energy in a market note cited reports of some OPEC cuts being enacted.

"The (Saudi) kingdom has reportedly notified refiners that November crude shipments will be around 900,000 ... (barrels a day) ... lower than August volumes," said the Vienna-based JBC. "Similar reports were also recently heard from Venezuela, Algeria, Qatar, and the UAE."

Oil prices have fallen by about 55 percent since peaking at $147.27 a barrel in mid-July.

 

[Ben's Car Wash]

Won't dropping oil prices free up more $$$ for the average Joe to spend elsewhere, thus stimulating the economy?

They have to have the money to spend... even on cheap gas! Since the prices are droping, driving and consumer confidence has not risen. Neither has new car sales! What you are seeing is a reaction to a recession in it's inital stages (like us discounting car washes to attract new customers) it will eventually led to price increases, inflation and stag-flation.

You can't print more money or lower interest rates without defering INFLATION..... it's impossible. Debt is the problem.... we have too much of it and consumers can't spend their way out.

Global demand for gas must stabilize while GROWING GDP.... how can you do that on a finite source of fossil fuels? Prices are dropping because GLOBAL GDP's are falling, trade is falling, banking is stalled in a credit crisis. The US must led on this or we fall the way of Rome, Greece, France, Spain and other former super-powers that once control then "global" economies. When we do emerge from this, I'd hate to see DUBI, INDIA, KUWAIT or CHINA come out ahead of US!