Gas Prices and production????

[gb387]

Ok, now that gas prices are going down why was production cut? Prices are nearly where they were a year ago, I don't expect them to go back to where they were. I filled up today and the bargain price of 1.71 (91 octane, Iowa Price) and the guy at the gas station said wait till January the prices will be up.

Is it just a Christmas gift from the oil tycoons?

I am not to sure I understand why they do what they do... can anyone fill me in?

[RamAirV1]

No doubt production was cut because OPEC fears that prices may go too low.

There are a lot of reasons why gas prices are high. Demand in third-world countries like China is skyrocketing. Due to EPA rules, there are about 145 different gasoline formulations in the US. That has to make the refining process more expensive. Plus, the refinieries have no excess refining capacity that would help to keep prices down.

RamAirV1

[Lt1Corvette]

1.71 for 91. I am jelous. I just paid 2.33 and was happy it wasn't in the 2.60 range. I heard rumors it was going to keep dropping a few cents then hold through january. At least I hope.

[RamAirV1]

Yeah, I would have to agree. $1.71 is dirt cheap!

RamAirV1