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PD Moderator	Message Posted: Dec 3, 2010 1:19:33 PM Ignore PD Report Abuse An interesting graph for you to look at- obviously demand plays a big role in where gasoline prices go. As demand rises, prices ten to follow. After demand began to drop in late 2007, prices eventually followed in 2008. With the economy in recovery mode, we're again seeing demand for gasoline rise, and that means rising gasoline prices. While demand has barely recovered vs. the second half of 2008, prices have already begun to move higher, mostly in anticipation that demand will come back sharply. This week the major stories have been positive manufacturing reports, but today we also saw an unexpected rise in unemployment, which surprisingly didn't lead to a fall in wholesale gasoline prices- at least yet. Wholesale... Visit GasBuddy Blog for full article

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Message Posted: Dec 3, 2010 1:19:33 PM

Ignore PD Report Abuse

An interesting graph for you to look at- obviously demand plays a big role in where gasoline prices go. As demand rises, prices ten to follow. After demand began to drop in late 2007, prices eventually followed in 2008.

With the economy in recovery mode, we're again seeing demand for gasoline rise, and that means rising gasoline prices. While demand has barely recovered vs. the second half of 2008, prices have already begun to move higher, mostly in anticipation that demand will come back sharply.

This week the major stories have been positive manufacturing reports, but today we also saw an unexpected rise in unemployment, which surprisingly didn't lead to a fall in wholesale gasoline prices- at least yet.

Wholesale...

Visit GasBuddy Blog for full article

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wally52 Champion Author Little Rock Posts:27,483 Points:816,460 Joined:Jan 2011	Message Posted: Apr 17, 2011 8:07:56 PM Ignore wally52 Report Abuse Less demand equals lower price
RegularGasUser All-Star Author Albany Posts:994 Points:803,675 Joined:Sep 2010	Message Posted: Dec 7, 2010 9:09:43 AM Ignore RegularGasUser Report Abuse The price of gas never "drops like a rock" as you say Pete. It goes up like a rocket ... and then drops like frozen molasses.
Pete12 Champion Author Albany Posts:4,880 Points:1,646,870 Joined:Nov 2005	Message Posted: Dec 6, 2010 7:40:10 PM Ignore Pete12 Report Abuse It will drop like a rock after Christmas.
FERG9 Veteran Author Twin Cities Posts:274 Points:74,890 Joined:Nov 2010	Message Posted: Dec 6, 2010 9:38:28 AM Ignore FERG9 Report Abuse I agree with Tomok
tomok Champion Author Portland Posts:33,073 Points:2,347,460 Joined:Aug 2006	Message Posted: Dec 5, 2010 4:24:26 PM Ignore tomok Report Abuse There is no connection between supply and demand AND gas prices. When crude oil prices are down, gas prices stay high. The price of fuel at the pump is too high!
ipm1 Veteran Author Las Vegas Posts:464 Points:196,270 Joined:Oct 2009	Message Posted: Dec 5, 2010 11:15:19 AM Ignore ipm1 Report Abuse Economy 101 is changing ..... LOL.
wxman08 Champion Author Vermont Posts:1,917 Points:401,470 Joined:May 2008	Message Posted: Dec 5, 2010 5:03:56 AM Ignore wxman08 Report Abuse "I am guessing that even though our demand is lower it is increasing in other countries and new countries using oil, driving up the price." Nope. The USA has been the big dog on the block when it comes to oil consumption for several decades now "Buddy2264". See below. ----------------------- "How could there be an unexpected rise in unemployment?" Because people that have previously stopped looking for work are now back in the job market as the economy recovers. Unemployment numbers are ALWAYS a lagging economic measure in ANY recovery "OnTheWater". ------------------------------- "THE WHOLE WORLD WILL SUFFER AS MOST MONEY EXCHANGES ARE IN THE AMERICN DOLLAR BACKED BY MOST OF THE WORLD'S GOLD (1/2 IN NYC, 1/2 IN FORT KNOX IN KY.)" The U.S. Dollar hasn't been "backed" by anything except the full faith & credit of the USA in many decades now "bigreddwg". Also, no one knows how much gold there is in the Swiss banking system. ----------------------------- "As long as people keep driving so much AND keep send so much money to China and the Chinese use that money to buy gasoline and keep driving so much the price of oil (and our gas) will remain high and rising." India & China combined only consume roughly less than HALF of the oil that the USA consumes right now. The price of oil has NOTHING to do with China "Petrock". Check the facts ---------------------------- "the 'demand' is not from US" YES it really is "findcheap"...wake up! --------------------------- "can't blame Bush for prices now." Sure we can...unnecessary wars for oil in Iraq, horrible monetary & fiscal policy, and rampant, dangerous deregulation are all a part of the world's situation when it comes to oil & it's price. "never heard him once mention anything about putting a leash on speculators." LOL...the "Enron loophole" exempted most over-the-counter energy trades & trading on electronic energy commodity markets from govt. regulation. The "loophole" was enacted in the Commodity Futures Modernization Act of 2000, which was pushed by the GOP, which allowed for the creation, for U.S. exchanges, of a new kind of derivative security, the single-stock future, which had been prohibited since 1982 under the Shad-Johnson Accord. The Dems closed this "loophole" in 2008...over GWB's veto, of course. "Obama's hedge funds company's are making a lot of money now." Obama doesn't own any "hedge funds company's"!
wxman08 Champion Author Vermont Posts:1,917 Points:401,470 Joined:May 2008	Message Posted: Dec 5, 2010 4:35:11 AM Ignore wxman08 Report Abuse "You really think they won't switch over to do alternative energy instead?" Not until the oil's totally run out "Sneakers55", unless the govt. gets more involved & invests more in alternative, clean, infinite sources of energy. ----------------------------- "aren't some countries starting to use their own currency to either purchase or base the worldwide oil price per barrel now?" No, there's been some talk of no longer pricing oil in U.S. Dollars bot no action so far "AUREOLAE". -------------------------------- "Take a good look at the years between 1930 & 1939 to see if you can figure out what happens to the vast majority of the working public when the 'fat cats' take a severe economic hit." The U.S. economy was rebounding throughout that entire time, period. "If this does not show you the truth of the trickle down economic effect you are indeed beyond hope." LOL...the only things your supply-side nonsense has gotten the USA over the last 30 years or so is a ballooning federal debt & deficit and an increase in the gap between the rich & poor, period end of story. "Next study the 10 year period after the three major Federal tax cuts in our lifetimes which were Kennedy’s in early sixties, Regan’s in early eighties & Bush II in the early 2000s to see what the real effect of tax cuts are on economic growth." Real GDP advanced at an annualized rate of 5.2% during the Kennedy years (when the top federal tax rates were literally in the low 90s before they were cut to the 70s), 5.1% during the Johnson years (when tax rates were raised again on the rich), and 3.6% when the Clinton administration was in power (when the federal budget was balanced & ALL income groups saw significant gains in prosperity). GDP only rose 3.5% per annum in the Reagan years...when the federal debt & deficits ballooned and the gap between the rich & poor got worse. Both Bush Presidential periods experienced growth of barely more than 2.0%! GDP growth under different U.S. Presidents "There is no way in Hades that significant tax burden increases can possibly lead to long term economic growth." Tell that to the 1990s after the 1993 tax increases on mostly the rich "MAC48"!
DrCashFlow Champion Author Massachusetts Posts:7,075 Points:1,629,095 Joined:Jun 2008	Message Posted: Dec 4, 2010 4:53:50 PM Ignore DrCashFlow Report Abuse economics 101
Powerstroke73L Champion Author Sacramento Posts:2,816 Points:731,150 Joined:Jul 2008	Message Posted: Dec 4, 2010 4:53:01 PM Ignore Powerstroke73L Report Abuse This site is involved with the propaganda peddling, too? They say, "With the economy in recovery mode, we're again seeing demand for gasoline rise..." My first response is, "recovery?" My second response is that according to the US Energy Information Administration, less refined gasoline was produced last month than at any time since March of this year. In addition, other than numbers from January of this year, there has not been less demand for gasoline in any other month than the last going back to before 2004 except for January 2006 and September 2005. I sure don't see how they determine there is an increase in demand....
badbonita Champion Author Syracuse Posts:6,234 Points:1,355,660 Joined:Jul 2008	Message Posted: Dec 4, 2010 1:45:04 PM Ignore badbonita Report Abuse As the prices increase, the demand is going to drop again since millions of people are still out of work, millions are having their unemployment benefits stopping in the next few weeks and all the temporary seasonal jobs will be ending. All it appears to be is that the greedy are trying to get as much $$ as they can since the demands are going to continue to drop and they'll be left with the storage fees.
nervous Sophomore Author Ventura Posts:221 Points:4,545 Joined:Oct 2010	Message Posted: Dec 4, 2010 10:28:18 AM Ignore nervous Report Abuse can't blame Bush for prices now. Obama just reversed himself and put a ban back on the east coast and east coast of the gulf Mex. never heard him once mention anything about putting a leash on speculators. Obama's hedge funds company's are making a lot of money now. Obama isn't a Texas man but he's still a hedge fund $$$$$ man.
djliberty All-Star Author Chicago Posts:966 Points:317,310 Joined:Mar 2008	Message Posted: Dec 4, 2010 9:35:50 AM Ignore djliberty Report Abuse demand and also the value of the dollar play a role
Night Owl Champion Author Toronto Posts:7,565 Points:1,789,525 Joined:Jul 2004	Message Posted: Dec 4, 2010 8:53:27 AM Ignore Night Owl Report Abuse Greedy speculators: '... prices have already begun to move higher, mostly in anticipation that demand will come back sharply.'
JimTee Champion Author Tampa Posts:2,357 Points:1,517,050 Joined:Apr 2006	Message Posted: Dec 4, 2010 6:56:15 AM Ignore JimTee Report Abuse The laws of supply and demand no longer regulate oil prices........greed does!
N5EXY Champion Author Austin Posts:5,502 Points:1,512,030 Joined:Jul 2004	Message Posted: Dec 4, 2010 6:46:59 AM Ignore N5EXY Report Abuse As demand rises, prices ten (sic) to follow. Imagine that.
findcheap Champion Author Los Angeles Posts:9,607 Points:2,011,825 Joined:Apr 2007	Message Posted: Dec 4, 2010 5:42:24 AM Ignore findcheap Report Abuse the "demand" is not from US
skippypa Champion Author Hawaii Posts:8,486 Points:1,742,880 Joined:Jun 2008	Message Posted: Dec 4, 2010 5:38:54 AM Ignore skippypa Report Abuse Conserve, conserve, conserve.
vamike Champion Author Virginia Posts:5,336 Points:1,366,900 Joined:Dec 2008	Message Posted: Dec 4, 2010 5:36:55 AM Ignore vamike Report Abuse There is no use trying to make sense of why gas prices go up.
dave364 Champion Author Lansing Posts:4,955 Points:1,439,290 Joined:Nov 2007	Message Posted: Dec 4, 2010 5:35:17 AM Ignore dave364 Report Abuse more BS
PhilMils Champion Author Virginia Posts:6,264 Points:1,186,390 Joined:Dec 2008	Message Posted: Dec 4, 2010 5:35:17 AM Ignore PhilMils Report Abuse Duh! As has been stated here many times, oil prices, and hence gasoline prices, will continue to rise over the long term unless there are world-wide cuts in the demand for oil. This graph didn't even cover the world-wide demand, but still shows a correlation.
ThatHunt Champion Author Dallas Posts:4,498 Points:1,956,535 Joined:Jul 2006	Message Posted: Dec 4, 2010 5:31:58 AM Ignore ThatHunt Report Abuse Drivers will drive less in coming months.
harleydoctor Champion Author Kansas Posts:7,355 Points:1,930,535 Joined:Sep 2005	Message Posted: Dec 4, 2010 5:24:41 AM Ignore harleydoctor Report Abuse All I can do is drive less and drive slower........
Petrock Champion Author Lexington Posts:9,133 Points:2,559,710 Joined:Apr 2005	Message Posted: Dec 4, 2010 5:22:21 AM Ignore Petrock Report Abuse As long as people keep driving so much AND keep send so much money to China and the Chinese use that money to buy gasoline and keep driving so much the price of oil (and our gas) will remain high and rising.
danny999 Champion Author Florida Posts:8,733 Points:1,641,010 Joined:Oct 2008	Message Posted: Dec 4, 2010 5:22:10 AM Ignore danny999 Report Abuse mAKE ALL THESE SPECULATING IDIOTS TAKE DELIVERY.tHAT WILL CHANGE THE MARKET BIG TIME.
Marson Champion Author Scranton Posts:8,957 Points:2,080,110 Joined:Oct 2006	Message Posted: Dec 4, 2010 5:20:16 AM Ignore Marson Report Abuse Lets remove the speculators and see where prices go.
naw62 Champion Author Maine Posts:9,442 Points:2,218,865 Joined:Sep 2006	Message Posted: Dec 4, 2010 5:19:49 AM Ignore naw62 Report Abuse The econmy is not in the recovery mode
dar 1 Champion Author Michigan Posts:5,903 Points:446,615 Joined:Jan 2005	Message Posted: Dec 4, 2010 5:17:54 AM Ignore dar 1 Report Abuse All greed.
AvantiMick Champion Author Indiana Posts:12,751 Points:2,544,475 Joined:Dec 2005	Message Posted: Dec 4, 2010 5:11:33 AM Ignore AvantiMick Report Abuse With all the unemployed, how can demand be up?
rosieGA All-Star Author Atlanta Posts:500 Points:400,645 Joined:Apr 2010	Message Posted: Dec 4, 2010 5:09:09 AM Ignore rosieGA Report Abuse Who say things are improving? It is all BS!
UseLessGasFolks Champion Author Iowa Posts:5,456 Points:1,297,800 Joined:Jul 2007	Message Posted: Dec 4, 2010 5:07:51 AM Ignore UseLessGasFolks Report Abuse But it is never big oils fault. All the pathetic excuses the give. A$$es
pennygasON Champion Author Ottawa Posts:3,343 Points:752,965 Joined:Oct 2009	Message Posted: Dec 4, 2010 5:06:10 AM Ignore pennygasON Report Abuse I agree...
Ratso Champion Author Ohio Posts:18,808 Points:2,686,545 Joined:Sep 2003	Message Posted: Dec 4, 2010 5:05:06 AM Ignore Ratso Report Abuse Demand may be up do to the fact so many people are out there pounding the pavement looking for a job or Christmas shopping ...
nozzle46 Champion Author Little Rock Posts:6,700 Points:1,474,025 Joined:Jul 2006	Message Posted: Dec 4, 2010 5:04:54 AM Ignore nozzle46 Report Abuse Isn't t this graph a little off? Price peaked at $4+ in 08.
ricebike Champion Author New Jersey Posts:10,043 Points:1,857,670 Joined:Oct 2005	Message Posted: Dec 4, 2010 5:04:21 AM Ignore ricebike Report Abuse i agree... this is just another article to find more excuses to raise the price it's running on pure greed & we can't do much about it
jppezz Champion Author New Mexico Posts:8,601 Points:1,694,510 Joined:Jun 2008	Message Posted: Dec 4, 2010 4:58:39 AM Ignore jppezz Report Abuse The demand is lower but the price goes up.So this is pure B.S.
LeeFree Champion Author Pittsburgh Posts:9,161 Points:2,245,400 Joined:Jun 2005	Message Posted: Dec 4, 2010 4:58:38 AM Ignore LeeFree Report Abuse I think demand became a minor factor several years ago when the rules for commodity traders were relaxed making price manipulation much easier. Pretty much what daequitz posted below.
WVUtailgater Champion Author Cleveland Posts:8,446 Points:1,700,635 Joined:Aug 2008	Message Posted: Dec 4, 2010 4:57:07 AM Ignore WVUtailgater Report Abuse this is pure crap
goldseeker Champion Author West Virginia Posts:19,559 Points:2,720,765 Joined:Sep 2005	Message Posted: Dec 4, 2010 4:52:30 AM Ignore goldseeker Report Abuse Doesn't really matter, as you pay whatever you have to.
JoJoQc Champion Author Montreal Posts:5,336 Points:1,040,155 Joined:May 2010	Message Posted: Dec 4, 2010 4:52:15 AM Ignore JoJoQc Report Abuse Agreed Bruno44!!!
76chevy Champion Author Toledo Posts:3,994 Points:770,605 Joined:Jun 2010	Message Posted: Dec 4, 2010 4:49:18 AM Ignore 76chevy Report Abuse I doubt demand will come back sharply.
daequitz Champion Author New Jersey Posts:6,327 Points:1,385,555 Joined:Jan 2007	Message Posted: Dec 4, 2010 4:46:35 AM Ignore daequitz Report Abuse This market has been tainted for years. There are too many outside non-market influences (spelled corrupt commodity speculators, price fixing, OPEC, arbitrary throttling of refining capacity, etc...) affecting any correlated demand-supply price curve.
billy44bo Champion Author Mobile Posts:7,217 Points:1,492,820 Joined:Feb 2008	Message Posted: Dec 4, 2010 4:43:43 AM Ignore billy44bo Report Abuse recovery?? with over 10% of the people without work the house market a joke and the White House a very sick joke.
HawaiianGuy Champion Author Idaho Posts:9,538 Points:3,081,650 Joined:May 2003	Message Posted: Dec 4, 2010 4:42:47 AM Ignore HawaiianGuy Report Abuse I don't know that I quite buy it. As I recall, the summer of '08 was marked by the highest prices at the pump I've ever seen.
GasRedliningSuk Champion Author Michigan Posts:5,860 Points:1,128,690 Joined:Jul 2008	Message Posted: Dec 4, 2010 4:39:52 AM Ignore GasRedliningSuk Report Abuse Looking at the graph, please note that about the time Oil reached its peak, the economy crashed...
Hunter724 Champion Author New Hampshire Posts:8,131 Points:1,648,025 Joined:Sep 2008	Message Posted: Dec 4, 2010 4:28:58 AM Ignore Hunter724 Report Abuse You call this a recovery??
FMREALTOR Champion Author Florida Posts:6,415 Points:1,698,955 Joined:Jan 2007	Message Posted: Dec 4, 2010 4:22:34 AM Ignore FMREALTOR Report Abuse My demand remains low, ever since +4.00/gallon
DrivingFool2 Champion Author Appleton Posts:8,597 Points:1,607,815 Joined:Apr 2005	Message Posted: Dec 4, 2010 4:18:36 AM Ignore DrivingFool2 Report Abuse If it's getting bad now, wait for next summer
BigDogOH Champion Author Cincinnati Posts:8,513 Points:1,809,770 Joined:Mar 2008	Message Posted: Dec 4, 2010 4:10:38 AM Ignore BigDogOH Report Abuse You got that right Bruno44
FearlessLeader Champion Author Pennsylvania Posts:6,888 Points:2,144,310 Joined:May 2006	Message Posted: Dec 4, 2010 4:03:10 AM Ignore FearlessLeader Report Abuse Some stations already over $3.00/gal. Most stations around here seem to pice their gas at 10 to 15 cents above the national average.