Tough times/ Bad Economy

chipj29 · 06-26-2008, 02:37 PM

I recently read that in April the US drove xx million fewer miles than the previous month. Fewer miles driven=fewer gallons of gas used. I don't know what the exact number is, so I can't answer how many gallons of gas, but I would hazard a guess at over 100,000 gallons of gas were saved in one month. Now stay with me here. The "speculators" are the ones who indirectly determine the price we pay at the pump. They base their number on supply and demand. So I deduce that since we saved 100,000 gallons of gas, the demand dropped. I will hazard another guess and say that supply did not change in that month (just a guess). So if demand decreases and supply doesn't change, doesn't that mean prices should have gone down?
This is where I think we are getting hosed by someone, while that someone is making a massive chunk of $$. At least that is how it looks from here.

I would be willing to bet that May and June will show similar decreases in gas consumption. Where will gas prices go??

06-26-2008, 02:37 PM	#11
chipj29 Senior Member Join Date: Apr 2004 Location: Bow Posts: 1,874 Thanks: 521 Thanked 308 Times in 162 Posts	I recently read that in April the US drove xx million fewer miles than the previous month. Fewer miles driven=fewer gallons of gas used. I don't know what the exact number is, so I can't answer how many gallons of gas, but I would hazard a guess at over 100,000 gallons of gas were saved in one month. Now stay with me here. The "speculators" are the ones who indirectly determine the price we pay at the pump. They base their number on supply and demand. So I deduce that since we saved 100,000 gallons of gas, the demand dropped. I will hazard another guess and say that supply did not change in that month (just a guess). So if demand decreases and supply doesn't change, doesn't that mean prices should have gone down? This is where I think we are getting hosed by someone, while that someone is making a massive chunk of $$. At least that is how it looks from here. I would be willing to bet that May and June will show similar decreases in gas consumption. Where will gas prices go??