Gas Prices - Do you think?

**DonnainME** · 11-10-2008, 12:30 PM

Do you think gas prices will go back up? If so, how high do you expect?

I'm in Western Maine and was able to get gas for $2.29 per gallon. I'm thrilled but worried they may go back up after Obama gets in office in Jan.

What do you think?

**MomToTwoBoys** · 11-10-2008, 12:32 PM

Obama's presidency will not determine how much our gas prices will be. I'm pretty happy with it being this low because it hasn't been this low since Clinton was in office.

**monkeywrangler71** · 11-10-2008, 12:37 PM

Originally Posted by DonnainME

Do you think gas prices will go back up? If so, how high do you expect?

I'm in Western Maine and was able to get gas for $2.29 per gallon. I'm thrilled but worried they may go back up after Obama gets in office in Jan.

What do you think?

Yes, of course they will go back up. It's not going to have anything to do with Obama taking office though, the US government does not control the price of oil. Oil is traded on the commodities market, it's price depends on supply, demand, and speculation. The US consumer controls the demand (currently low), OPEC countries control the supply (currently high), speculators set the price they are willing to pay based on their assessment of the two (currently bearish).

The price of oil has dropped in half, the demand for oil has not. The market has over corrected and it will go up again. As to when and how far it will go up, that is a matter for the crystal ball.

**JanieD** · 11-10-2008, 01:57 PM

I think it will go up after the first of the year. I noticed gas prices fell in November & December last year too. I have a few thoughts why this is haven't, but no research to back them up.

**DonnainME** · 11-10-2008, 02:15 PM

Originally Posted by JanieD

I have a few thoughts why this is haven't, but no research to back them up.

OK Janie - what are your thoughts?

**IntlMom** · 11-10-2008, 02:21 PM

My husband is convinced that they will go back up when he takes office.......
me? I don;t really care about Obama at all......I'm just glad that gas prices are down for now

**Non-Conformist** · 11-10-2008, 02:47 PM

I hope they don't go back up.

Who is with me in hoping for $1.65 a gallon?

**JanieD** · 11-10-2008, 03:00 PM

I honestly can't get my head around how the oil market works. So, I'm out on a limb here with my chain saw...

I do have a tough time believing the US government isn't "in with" the oil companies. I follow what moneywrangler71 in saying to a point, but I really feel our government has a lot to do with it (no research/proof to back up anything). I do believe prices are lowered to encourage holiday spending. Then come January the prices will climb due to demand or whatever convenient reason they give. I could go on & on with why I feel the government would care to do this type of thing, but I think I've giving ya'll enough rope.

**Contrary Housewife** · 11-10-2008, 03:57 PM

Originally Posted by Non-Conformist

I hope they don't go back up.

Who is with me in hoping for $1.65 a gallon?

I filled up our car Saturday for $1.64 a gallon here in Kansas City. It's as low as $1.61 in some areas today.

http://www.kcgasprices.com/

I'm expecting it to start creeping up sometime soon. Enjoying it while we can.

**fixer** · 11-10-2008, 04:07 PM

There is an old saying that goes "The cure for high oil prices is high oil prices." Oil reached a price level that was not sustainable. The global economy slowed down due to it and a host of other things. When it reaches a certain point, people cut back driving, industries start finding alternatives and so on. I think if the world is serious about alternative energy, you will see an increase in supply from OPEC thus lowering prices. The cheaper oil is the more expensive alternatives become.

**DonnainME** · 11-10-2008, 04:23 PM

Originally Posted by fixer

There is an old saying that goes "The cure for high oil prices is high oil prices." Oil reached a price level that was not sustainable. The global economy slowed down due to it and a host of other things. When it reaches a certain point, people cut back driving, industries start finding alternatives and so on. I think if the world is serious about alternative energy, you will see an increase in supply from OPEC thus lowering prices. The cheaper oil is the more expensive alternatives become.

I agree that OPEC should increase supply but they are only "in it for the money" and will try to keep the costs as high as they can - my 2cents worth.

**monkeywrangler71** · 11-10-2008, 05:21 PM

Of course they are in it for the money. OPEC's coalition exists to protect the interests of oil exporting countries. I don't think it is fair for anyone to expect that other countries should sacrifice their main source of revenue in order to insure that Americans have cheap gasoline. Oil is a limited resource, when it's gone that's it, there's no more. Why would any country want to unload a valuable limited resource at firesale prices, especially when it is the backbone of their economy?

Oil is the largest component of the Canadian economy. For us, these prices mean job losses, reduced services, higher taxes, and federal debt. There is certainly not going to be any action here to bring the prices even lower.

**fixer** · 11-10-2008, 05:35 PM

I did not mean they should reduce prices. I meant they would reduce prices as a way to keep the world from developing alternatives. At $150 oil you can spend a lot of money to replace it. OPEC should and will do what is in their best interest.

**The Muse** · 11-10-2008, 05:54 PM

I think prices will go up around Christmas, but I'm not sure how high.

I think we will see $4+/gallon gas again. I'm not sure when, but I don't see what a new President has to do with it.

**BlessedMomof2** · 11-10-2008, 07:39 PM

I really hope the price of gas does not go up, but I think it's eventually going to. I personally don't think gas prices have anything to do with who's in the presidential office.

Gas prices today in my area were $1.99 this morning!!! They can keep going down for all I care.