November 5, 2005

Greedy Monopolistic Oil Companies Watch Helplessly as Pump Price of Gas Falls Below $2

Predictions:

From CNN

$3 gas — is it here to stay?
Experts say retreat from record oil prices is near, but relief could be modest, and brief.

NEW YORK (CNN/Money) – The pain of $3 at the pump could end soon for many Americans, but the respite in gasoline prices may be modest — and only temporary, energy experts said Wednesday.

In any event, gasoline prices rarely fall as quickly as they go up, so consumers should get used to higher prices at the pump.

From BBC, quoting a private industry observer–

“The scary thing is that the hurricane season is not over yet… so I don’t see prices coming down, said Tony Nunan, manager for energy risk management with Mitsubishi Corp’s international petroleum business in Tokyo.

Bloomberg News via The Seattle PI

Experts split on top price of gas–Some expect to see $4 a gallon at pump before next year

Motorists will pay $4 on average nationally for a gallon of regular gasoline before the end of the year as hurricane-damaged refineries stay shut and imports from Europe wane, Luis Giusti of the Center for Global Energy Studies predicted Tuesday.

The Reality:

Greater Cincinnati (3PM Nov. 5, reduction below $2 occurred earlier in the day)–

Cincy

Metro Columbus

Columbus

Indianapolis

Indy

Experts, shmexperts.

__________________

UPDATE: As of 11 PM, the lowest price is lower, and there are more sub-$2 outlets, in all three metro areas.

UPDATE 2, Nov. 6: EU Rota, who previously linked to this post, helpfully provides this nationwide graph, from Department of Energy retail data, of gas prices, showing that they are below pre-Kartina levels (thanks, EUR!)–

USAgas

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3 Comments

  1. meanwhile record high temperatures have got to be causing a glut of fuel oil, natural gas and propane. Which is good, because we could use a few breaks on the energy front.

    Also notice that Diesel remains above $3 a gallon, so shipping by truck is still an expensive proposition.

    Comment by dave — November 5, 2005 @ 7:05 pm

  2. #1 Dave, things aren’t ideal, but the markets are working things out as best they can. No doubt some forms of energy are still pretty expensive (diesel, jet fuel, natural gas), but your point about milder weather perhaps helping out is a good one.

    Comment by TBlumer — November 5, 2005 @ 7:45 pm

  3. Big Oil: Spoiling the Consensus

    Tom Blumer at Bizzyblog ruins the consensus of ‘Big Oil = Bad’ with a post which looks back at the very recent predictions of stratospheric gasoline prices being here to stay….. forever:

    Trackback by EU Rota — November 6, 2005 @ 1:28 am

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