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Old August 25th 06, 02:19 PM posted to rec.aviation.piloting
ktbr
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Posts: 221
Default Gas prices falling...

Jay Honeck wrote:
I'm not complaining, mind
you, but I *am* confused -- why is the price of gas dropping so fast
right now?.


Several reasons. The end of the summer travel season has arrived,
people have probably cut back on driving to some extent because of
higher prices and so demand is down. No hurricanes thus far have
also put a damper of the rabid paranoia in the futures market.

Just remember that the price of oil (and thus, gasoline) is set
by the global markets and oil futures contracts as well as the spot
market. When world geopolitical situations are unstable up goes
the price of oil since its supply lines can so easily be distrupted.