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what makes the gas prices go up and down? It was over $5 and now its $1.73


Asked by Anonymous at 6:31 PM on Dec. 7, 2008 in Politics & Current Events

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Answers (18)
  • The price we pay at the stock market for crude oil future prices which is based on our supply and demand. When crude oil was $145.00 a barrell we paid high prices. Now it is down close to $40.00 a barrell so the price of gasoline is down at the pump. We are learning to use and burn less gasoline so the foreign oil producing nation's aren't selling us too much crude. I hope we all stick to this and don't fall back into old habits. With the economy the way it is, it is a break at the gas pump.

    Answer by foreverb3 at 6:56 PM on Dec. 7, 2008

  • supply and demand.

    there are some good easy-to-read books on economics out there if you want to understand this better, like "Basic Economics" by Thomas Sowell

    Answer by whohannah at 6:33 PM on Dec. 7, 2008

  • A combination of supply and demand and speculators. Speculators come out and say Gas will go up/or down and it affects the market. When gas is up ppl drive less which drives down demand because we arent driving like we used to.

    Answer by gemgem at 6:34 PM on Dec. 7, 2008

  • but also remember that speculation is an important market function.

    Answer by whohannah at 6:36 PM on Dec. 7, 2008

  • Yep it is but it does have an effect on the market. Right now/lately they have said prices would go down and they have, before they said up and it did. Its a real combination of events. Not to mention world markets also effect gas prices. They say when the United States sneezes the rest of the world gets the flu.

    Answer by gemgem at 6:38 PM on Dec. 7, 2008

  • it was funny because there were all these commentators saying that speculators couldn't possibly be bidding up the price that much with false demand. The commentators were wrong!

    Answer by whohannah at 6:40 PM on Dec. 7, 2008

  • I really dont know who was right or wrong Im just happy Im not paying $5 a gallon anymore lmao.

    Answer by gemgem at 6:44 PM on Dec. 7, 2008

  • While supply and demand play a huge part of it, most of the decision comes from OPEC, which is in Saudi. Recently Iran and Hugo Chavez have both recommended that supply be reduced to bring the cost back up to 80.00/barrel. This is something that OPEC is considering-why we do business with countries that dont want anything to do with America is beyond me.

    Answer by DawnPratt23 at 6:53 PM on Dec. 7, 2008

  • The global market demand is low. Which means Opec cuts production, which lowers the price. Click Here.  This is the most recent article on the global demand.


    Answer by grlygrlz2 at 6:58 PM on Dec. 7, 2008

  • if you lower the supply the price will go up, besides here is the article. Which proves as the first poster pointed out, basic economics,

    "Iraqi Oil Minister Hussein al-Shahristani said on Friday that 80 dollars a barrel is a "reasonable" price for oil and that his country would support any OPEC decision to cut output."

    Answer by DawnPratt23 at 7:58 PM on Dec. 7, 2008