Posted on Tue, Oct 23, 2012 : 12:58 p.m.
Some areas of Michigan expected to see gas dip below $3 mark by end of 2012
By Cole Bertsos
In the aftermath of Hurricane Ivan, gas prices were shooting up above $4 a gallon, but could Michigan see numbers fall to $3 and below by year's end? According to a story by the Detroit News, some industry analysts are saying yes.
The News reported that throughout the year, the price of gas has lingered around $3.90 per gallon until earlier this month, when it began dropping more than 40 cents in the past two weeks.
The demand for gas traditionally drops post-summer because people aren't traveling as much, which helps the price decrease, according to the story. The price drop also is a result of a larger supply of gas due to refineries making cheaper, easier to produce fuel to gear up for winter.
To read the full report go here.
Comments
Great Lakes Lady
Wed, Oct 24, 2012 : 5:33 p.m.
Of course gas prices will decrease just before the elections. Obama banned US offshore drilling. His administration then loaned $2 billion of our taxpayer funds to Petrobras, for Brazilian off shore drilling. Follow the money. George Soros is an investor in Petrobras and an Obama campaign bundler. The Brazilian President then thanked the U.S. by signing an agreement with Russia to sell them cheap Brazilian oil. Hmmm....does this result in the US subsidizing Russian oil supplies?
ThinkingOne
Thu, Oct 25, 2012 : 1:34 a.m.
So your point is that by Brazil selling oil cheap to Russia we have lower gas prices in the US?
dexterreader
Wed, Oct 24, 2012 : 12:18 p.m.
This past Sunday morning, gas was $3.49 at the truck stops on Baker Road in Dexter. 14 miles east, at the Speedway on Michigan Avenue and I-94 in Ypsilanti it was $3.26. What the heck? Do they think people in Dexter have more money to spend on gasoline than people in Ypsilanti??
rm1
Wed, Oct 24, 2012 : 2:35 a.m.
'Y' assures us: "Obviously an election ploy and nothing else. Will be back up to the $4 mark right after the election!! Enjoy it while you can!! Sad these crooked politicians have this much control!" But 'Y' is woefully uninformed (and seems not to care?). The US president has virtually no control over the market price of oil and gasoline. Oil prices are governed largely by supply and demand on an international basis, since oil is a massive worldwide market involving production, around the world, of something like 85-87 million barrels a day, every day, and consumption of about the same amount. A fleet of huge tankers and pipelines move this massive amount of oil, refineries around the globe are supplied by this network, and gasoline and other refinery products are distributed by a related network. This is all done fairly efficiently. One effect is that the price is fairly uniform around the globe, and no one country or company, or even cartels of them, can now exert much control. If prices go up in one region, supplies can be brought in to bring the price down; so that prices will not vary significantly for very long. Although not perfectly efficiently. There are occasional bottlenecks and disruptions, like the refinery difficulties that led gasoline prices in California to spike a few weeks ago, and similar events in the midwest a couple of years ago. But on the whole, the price is a world price, not one that a US president can manipulate. The only lever the President actually has is the power to release oil from the US Strategic Petroleum Reserve. (Google it and look at the Wikipedia article, if you want some detail.) But oil was released from the SPR only once recently, in mid-2011, when 30 million barrels were sold from the SPR, and a similar amount from other IEA countries, to calm the markets during the disruption of the Arab Spring. Prices will likely to continue to drift down, as seasonal driving slackens.
a2citizen
Wed, Oct 24, 2012 : 6:17 p.m.
"Y" was not commenting on the price of "crude", he was commenting on the price of "gas".
rm1
Wed, Oct 24, 2012 : 12:57 p.m.
The price of petroleum -- crude oil -- is relatively uniform around the globe, at prices set by a world market. The prices of gasoline at the pump vary much more, as in the examples you give, because various governments either tax it heavily (UK, Norway), or less heavily (US), or subsidize the price to their citizens (Saudi Arabia, Chavez's Venezuela). One consequence of those prices at the pump is that cars in the UK and Norway are smaller and more fuel-efficient, reducing those nations' consumption of fuel, and in the case of the UK, reducing its need to import oil (Norway is a huge producer and a net exporter). US cars will be smaller and more efficient, as the new fuel-efficiency standards are phased in over the next 13 years.
a2citizen
Wed, Oct 24, 2012 : 4:23 a.m.
"... One effect is that the price is fairly uniform around the globe..." Don't get out of Washtenaw County much, eh? Gas is about: $ 0.53 per gallon in Saudi Arabia $ 8.45 per gallon in the UK $ 3.35 per gallon in Ann Arbor $ 9.84 per gallon in Norway $ 6.60 per gallon in New Zealand Please define "fairly uniform".
Ivor Ivorsen
Wed, Oct 24, 2012 : 12:02 a.m.
Predictable silly comments about Presidents and the price of gasoline. Refinery capacity, global demand (read: China) all completely outside the control of any president, Republican or Democratic.
Superior Twp voter
Tue, Oct 23, 2012 : 11:46 p.m.
Yea, gas prices below $4 for election time, and the false Oblama administration unemployment figures (below 8 % my ****). Coincidence? I think not. But of course when gas prices went UP during the Bush presidency, it was the evil Haliburton, Chaney, Bush and the oil moguls profiteering. Bush profited huge, remember Libs? Crucified by the lamestream media for the rise in prices of a gallon of fuel. But now, gas prices near $4 per gallon, the crickets chirp in the lamestream media right along with the Washtenaw County libs.
bobslowson
Wed, Oct 24, 2012 : 12:15 p.m.
Gas has been $3.23 at the Citgo at the corner of Ellsworth and Platt for 3 days in a row now!!
Basic Bob
Wed, Oct 24, 2012 : 1:01 a.m.
Gas prices near $4? You need to look around. I bought for $3.26 yesterday, no discounts, no coupons, no membership fees, no cash only prices.
LXIX
Tue, Oct 23, 2012 : 11:31 p.m.
Now just remember folks, vote your conscious on that darned alternative energy proposal and we'll keep our prices low like this for the rest of the year. Remember now folks - Vote Low!
Tom Todd
Tue, Oct 23, 2012 : 9:50 p.m.
the Rich want a vote for Romney, just trying to sweet talk us with cheap gas.
ann_arbor_guy
Tue, Oct 23, 2012 : 8:23 p.m.
I don't understand why some people point out that the US gas prices were $1.84 (which is true) in January 2009 when the president took office always neglect the other statistics that are available for January 2009: Michigan leads the nation in unemployment 13.9% January 2009 had 598,000 jobs lost in one month, the biggest one month plunge since 1974. Foreclosures were up 225% from 2006 The US Dow Jones had dropped to 6469 from a high of 14,164.43 October 2007 I would understand their argument more if they included all of economic facts that were present in January 2009. Obama/Biden 2012
fjord
Tue, Oct 23, 2012 : 7:37 p.m.
The predictions of $5 per gallon haven't come true. I don't expect these predictions to fare any better.
Fatkitty
Tue, Oct 23, 2012 : 7:05 p.m.
Really? I'll believe it when I see it.
jim
Tue, Oct 23, 2012 : 6:46 p.m.
No, the Republicans blame the President. The Democrats blame the former President.
bobslowson
Tue, Oct 23, 2012 : 6:11 p.m.
When gas prices go up...people blame the President. When gas prices go down...they also blame the President.
WalkingJoe
Tue, Oct 23, 2012 : 5:51 p.m.
Our high school history class back in the late 60's laughed when our teacher predicted gas would someday cost over $3 a gallon and bread would be more than a $1 a loaf. If he only knew how right he was going to be he could have made a fortune.
Y
Tue, Oct 23, 2012 : 5:49 p.m.
Obviously an election ploy and nothing else. Will be back up to the $4 mark right after the election!! Enjoy it while you can!! Sad these crooked politicians have this much control!
brian123
Wed, Oct 24, 2012 : 4:24 p.m.
Clownfish - gotta love that "fair and balanced" approach, eh?
alan
Wed, Oct 24, 2012 : 1 p.m.
Sad that anyone believes that politicians control the daily price of a global commodity.
clownfish
Wed, Oct 24, 2012 : 12:31 p.m.
Here is FOX NEWS in 2008 explaining away the $4 gal gas. Back then it was NOT the presidents fault, now it is. http://www.youtube.com/watch?v=UzEnKdBAb_o
bobslowson
Wed, Oct 24, 2012 : 12:16 p.m.
I heard FOX News say it was an election ploy so it's obviously true!
fjord
Tue, Oct 23, 2012 : 7:36 p.m.
"Obviously an election ploy..." Show me ONE shred of evidence — from an objective source — that shows that the White House controls gas prices. Just another wingnut myth.
Bob Zuruncol
Tue, Oct 23, 2012 : 6:40 p.m.
...because Exxon calls the White House every morning to ask the President how they should price their product.
GoNavy
Tue, Oct 23, 2012 : 5:35 p.m.
Uh-oh...that's going to push back the premium payback period for the Prius you bought a few years ago by another couple of years.
Top Cat
Tue, Oct 23, 2012 : 5:34 p.m.
It was below $2 a gallon when President Solyndra took office.
clownfish
Wed, Oct 24, 2012 : 12:27 p.m.
It was 4.29 in June of 2008, when President Halliburton was in office. The Whiners said it would be $5 by the summer of 2012 (many of them posted on these pages telling us that, see above for a repeat)
fjord
Tue, Oct 23, 2012 : 7:34 p.m.
False, and false.
waylon
Tue, Oct 23, 2012 : 6:45 p.m.
And will be $5 or better if re-elected !
Are you serious?
Tue, Oct 23, 2012 : 5:27 p.m.
These falling prices are obviously being orchestrated by Obama to help him win the election!!! (Sarcasm intended.)
michael Limmer
Tue, Oct 23, 2012 : 11:44 p.m.
Just reading where, under Obama, the US may become the leading producer of oil as soon as this year, with production near 11.5 BPD. Before that, production had fallen significantly after Prudhoe Bay top out. Who knew?