Why is it that during times of armed conflict (involving the US) in the Middle East the price of gasoline in the US drops below $1 a gallon?

<blockquote>quote:</font><hr>Originally posted by Ronn_Bman:
Why is it that during times of armed conflict (involving the US) in the Middle East the price of gasoline drops below $1 a gallon?<hr></blockquote>

not just middle east, in San Lewis, CA the gas is 1.11 for the cheapest, and SF's gas price dropped dramatically too

I dont get it

I edited my original post to reflect the idea that the price of gasoline drops in the US during times of conflict in the Middle East.

so any guesses on why it dropped? because there is a reduction in gas usage? ... where do all those cheap gas come from? or government regulation on gas price? (nah, I dont think so)

so why do the gas price drop?

<blockquote>quote:</font><hr>Originally posted by 250:
so any guesses on why it dropped? because there is a reduction in gas usage? ... where do all those cheap gas come from? or government regulation on gas price? (nah, I dont think so)

so why do the gas price drop?<hr></blockquote>


Usage has dropped dramatically since September 11th, but it didn't (much) during the Gulf War, and we got he same effect?!?!

Also, the low prices lasted quite a while after the Gulf War and only began to surge in the last two years. Middle Eastern Allies support of the US?

<blockquote>quote:</font><hr>Originally posted by Ronn_Bman:



Usage has dropped dramatically since September 11th, but it didn't (much) during the Gulf War, and we got he same effect?!?!

Also, the low prices lasted quite a while after the Gulf War and only began to surge in the last two years. Middle Eastern Allies support of the US?<hr></blockquote>

Guarding against the possibility of what the oil companies feared *might* be a drop in usage, in the case of the Gulf war, and an actual drop in usage following September the 11th?

Currently the price is down due to the production war going on between OPEC and Russia.

Most analysts are predicting an all out oil glut if a compromise isn't reached soon between the two...you might see lower gas prices yet!

<blockquote>quote:</font><hr>Originally posted by Argus:
Currently the price is down due to the production war going on between OPEC and Russia.

Most analysts are predicting an all out oil glut if a compromise isn't reached soon between the two...you might see lower gas prices yet!<hr></blockquote>

Fabulous! Lower gas prices, use more gas! (who gives a flying whatsit about global warming anyway.... ) Let us continue fiddling while Rome does that incendiary thing.....

You're quite right, there will be even less incentive to research alternative energy sources if oil prices plummet. Now that Russia and the US are even more buddy-buddy, I would expect that there could be a shift of power away from OPEC. Interesting how this could work:

Oil prices go down, hurting the Russian economy, but helping the US economy. The US then proceeds to provide financial aid to Russia in order to support its budget deficit caused by the falling oil prices.

Nice symbiotic circle???

<blockquote>quote:</font><hr>Originally posted by Argus:
You're quite right, there will be even less incentive to research alternative energy sources if oil prices plummet. Now that Russia and the US are even more buddy-buddy, I would expect that there could be a shift of power away from OPEC. Interesting how this could work:

Oil prices go down, hurting the Russian economy, but helping the US economy. The US then proceeds to provide financial aid to Russia in order to support its budget deficit caused by the falling oil prices.

Nice symbiotic circle???<hr></blockquote>

Oh for some long term thinking in human affairs!!