Tough times/ Bad Economy

[chipj29]

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??

[GWC...]

Originally Posted by chipj29

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??

You forget the effect the knat in Iran that has a case of the hiccups has...

[rander7823]

Originally Posted by chipj29

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??

I thought the esitmate was 2 Billion(that sounds like alot) less miles traveled


And don't forget the hundreds of flights that have been cancelled by the airlines and all that jet fuel that wasn't used.

It just doesn't seem to add up to what we were taught in Economics 101

[chipj29]

Originally Posted by rander7823

I thought the esitmate was 2 Billion(that sounds like alot) less miles traveled


And don't forget the hundreds of flights that have been cancelled by the airlines and all that jet fuel that wasn't used.

It just doesn't seem to add up to what we were taught in Economics 101

That is exactly my point. It just does not add up.