Gas Prices in Detroit Falls Below $2 Per Gallon

[Jimaz]

<post retracted — reference tainted by Faux "News" association>

[Zacha341]

^^^ Wait long enough and it will perhaps be caught by the other 'news'? services. That's happening more these days and Faux looses it's traditional hold on the usual suspect exposes!

[JBMcB]

According to the Noose media OPEC munipulates pricing by controlling production.

They certainly try to. They haven't been super-effective since the 70's oil crisis.

If there's a reserve, [[and right now there is) they'll slow down production. If reserves are down, they increase production to meet demands. Right now reserves are up but OPEC hasn't slowed production, forcing prices down.

Right, so demand is drying up, mainly due to the economic slowdown in Europe and China.

The big question is "why?". Speculation is to make Ruski oil and Western "Frucking" less cost effective.

Another explanation is the member countries and companies of OPEC like making money. Cutting production *may* increase profits later on - usually the price starts creeping back up significantly in a year or so. However, if they maintain production, they make money *now*. Try asking a sales guy to try to sell less of something to bring the price up.

My own personal conspiracy theory is it's a US/OPEC joint to sanction Russia. My only question is what was promised in return?

An interesting theory, however, from a political standpoint, OPEC is a basket case. You've got Venezuela and Iran who are buddies and "friends" with Russia, Iraq who hates Iran AND Russia, Saudi Arabia who also hates Iran but is ambivalent towards Russia, the UAE who could care less about Russia...

Convincing them all to gang up on Russia would be insanely difficult at best. It's hard for them to all agree on much of anything.

[ABetterDetroit]

An interesting theory, however, from a political standpoint, OPEC is a basket case. You've got Venezuela and Iran who are buddies and "friends" with Russia, Iraq who hates Iran AND Russia, Saudi Arabia who also hates Iran but is ambivalent towards Russia, the UAE who could care less about Russia...

This statement is so far off base to the current state of world affairs it sounds like it came out of the first world war but I will only pick one.

"Iraq who hates Iran". Which Iraq are you talking about? The Sunni dominated dictatorship of the 1980s who fought a war with Iran maybe? Well it isn't the 1980s anymore, as a matter of fact a whole lot of things have changed since then. You must be the only one who missed it but there was another war that happened since then that toppled that government. To fill you in, long story short, the result of that war was a Shiite dominated government in Iraq. Relations with Iran have improved immensely since those events have taken place. Next up for bringing you into this century on just this subject would be the current civil war in Iraq but frankly I don't have the time.

[Bobl]

It's all Obama's fault.

[Honky Tonk]

They certainly try to. They haven't been super-effective since the 70's oil crisis.

That's why gasoline prices have fallen below the $2 mark, Russia's economy is on the skids and will take @ least 2 years to recover, Frucking Industry CEO's are walking alleys, picking up cans and bottles, and oil towns in Texas, ND, and Oklahoma are saying "so THIS is what recession means!!!" because OPEC is so "powerless".

[mtburb]

Today's fill-up at West Jefferson and Northline aka Biddle Avenue and Ford Avenue.

[jerrytimes]

Ahh, it IS truly wonderful to see a twenty spot make the gas gauge needle move upward...... for now.

It's nice to be able to take a joy ride again

[Packman41]

This is from ABC News – today. Is that source acceptable to you?

http://abcnews.go.com/Business/wireS...ly-50-28006834

US Oil Falls Below $50 for 1st Time Since 2009

“The price of oil plunged again Monday and fell below $50 a barrel for the first time since April 2009 as evidence mounted that the world will be oversupplied with oil this year.

Benchmark U.S. oil dipped to $49.77 before closing down $2.65, or 5 percent, to $50.04 a barrel. Brent crude, a global benchmark used to price oil used by many U.S. refineries, sank $3.31, or 5.9 percent, to $53.11.

In June of last year oil traded above $107 a barrel. But rising production outside of OPEC, especially in the U.S., boosted supplies just as weakness in the global economy slowed the growth in oil demand. OPEC's decision in November to maintain existing production levels accelerated the rout in oil prices.

Slower growth in China's economy, a driver of oil demand in recent years, and a strong dollar, which makes oil more expensive for holders of foreign currencies have also pressured oil prices.”

Or:
http://www.cbsnews.com/news/what-are...-prices-lower/

“According to the [U.S. Energy Information Agency] EIA, America's domestic oil production has grown from 5.6 million barrels per day [[bbl/d) in 2011 to 7.4 million bbl/d last year. And the administration's short-term energy outlook is projecting continued "rapid production growth" for this year and 2015 -- with the projected production forecast for 2015 averaging 9.5 million bbl/d.”

[313WX]

A lot of people in Texas are worried right now because of the low gas prices. I know several Texans who are terrified at the idea of a "bad" economy in Houston and Dallas. These same folks used to rip on the "poor" Rustbelt folks and the local economy in SE MI. It's hard to feel bad for Texas at the moment.

Well let's not get the big head now...

If the decline in oil prices were to trigger another economic crisis, and people start losing their jobs again by the millions, guess what new purchases folks are going to put off first?

You can kiss Detroit's "comeback "goodbye" as well, as all of the grandiose plans in the pipeline will be placed on indefinite hold again...

[Dan_the_man]

Well let's not get the big head now...

If the decline in oil prices were to trigger another economic crisis, and people start losing their jobs again by the millions, guess what new purchases folks are going to put off first?

You can kiss Detroit's "comeback "goodbye" as well, as all of the grandiose plans in the pipeline will be placed on indefinite hold again...

At the same time everyone outside of Texas or not employed in the oil industry will have a lot more money on hand that they would otherwise be spending on gas. I don't see how low gas prices could possibly crash the economy.

[Hypestyles]

so what's the next major traveling holiday? Easter or Memorial Day?

[MikeM]

At the same time everyone outside of Texas or not employed in the oil industry will have a lot more money on hand that they would otherwise be spending on gas. I don't see how low gas prices could possibly crash the economy.

You mean like in Ohio?

U.S. Steel Lays Off 756 Blaming Low Oil Prices
http://www.wsj.com/articles/u-s-stee...ces-1420556069

[MikeM]

Believe it or not:

Crashing oil prices to hit home-price appreciation
http://www.marketwatch.com/story/cra...ion-2015-01-06

[mtburb]

As of the day the post above was made, the Sunoco next to the Southwest police/fire combo station on Fort Street was still reporting $2 as the minimum there.

So was the BP up the road at Fort and Clark.

[Gpwrangler]

At the same time everyone outside of Texas or not employed in the oil industry will have a lot more money on hand that they would otherwise be spending on gas. I don't see how low gas prices could possibly crash the economy.

if they are smart they will SAVE some of this money.

[Honky Tonk]

As of the day the post above was made, the Sunoco next to the Southwest police/fire combo station on Fort Street was still reporting $2 as the minimum there.

So was the BP up the road at Fort and Clark.

That's high. Filled up yesterday @ $1.69 a gallon, [[regular, cash) @ the BP on MI Ave. & Wyoming.

[canuck]

That's high. Filled up yesterday @ $1.69 a gallon, [[regular, cash) @ the BP on MI Ave. & Wyoming.

Wow! Just checked the streetview of the Wyoming/Michigan BP and the shot was taken in 2011. The price then was $3.25 a gallon! That's almost half price.