i was wondering...

[KiraX]

why are the gas prices dropping?
i was on my way to school today and i saw that gas was $2.99 a gal.
for a while it was just going up and then i look around and see are these gas stations dropping there prices? can anyone shed some light on this?
thnx ^_^

[Sasami Jurai]

Whoa, $2.99 is cheap. The gas prices here in Southern California are like $4, almost $5.. :/ I guess the gas prices are dropping because war's nearing its end, for now, idk.. lol I hope so 'cause war is stupid.. I hope our next President will cease war from happenin' during his term..

[KiraX]

wow thts crazy!!!
has it gone down any?!?
im not trying to be mean, but how do you know the war is drawing to a close?
im not for the war, but i seriously dont see it ending anytime soon...
i seriously hope that the gas prices dont all of a sudden spike....

[Sasami Jurai]

Well sorry if my guess was wrong; It probably is wrong, but I just really loathe our country having a war. It's just not right. I don't know why the gas prices are goin' down.. I haven't paid any attention to the gas prices lately, but I think it went down to $3.50 or something. I don't know much about politics in terms of gas prices dropping or the current ongoing war, but I think Athos is going to answer your question for you He's a Political Encyclopedia

[KiraX]

$3.50 is still crazy.
well i hope they keep going down
and im with you on the war. but i can also see where people who are pro war are coming from. take 911 for example. that was an unbelievable event. but if you think about it would you just stand there as another country kept repeating such events causing the deaths of thousands? i beleive actions needs to be taken. i dunno...politics can be a confusing issue.
but you should invite Athos to join me on this topic ^_^

[Sasami Jurai]

Don't worry, he'll eventually find this topic and give you an in-depth answer. He always does

[KiraX]

lol well i hope he finds it soon.
do you drive?
if so i feel sorry for you having to pay $3.50. that must suck.
that money could be going to manga or something of that sort ^_^

[Sasami Jurai]

Yeah, I drive now! It's fun. Lol, and don't feel sorry for me, I don't think it sucks because gas prices have always been like that here. Depends on where you live. XD

[KiraX]

lol good for you.
lol i dont know wht i would do if gas was always like $3.50ish or whatever.
lol im going to sound like an old person, but i rememeber whn gas was lie $1.90!!! crazy!!!!

[Sasami Jurai]

lol good for you.
lol i dont know wht i would do if gas was always like $3.50ish or whatever.
lol im going to sound like an old person, but i rememeber whn gas was lie $1.90!!! crazy!!!!

Ah, I remember that too. That was waaay back when when Clinton was still President. I guess the gas prices rose tremendously because of 9/11.

[Athos]

Well, that's what some say. There are many theories as to why. But, we all do now that the price of gas doesn't accurately reflect the law of supply and demand. One reason is because Congress attempted to pass the American Energy Act of 2008, but Nanci Pelosi, the current Speaker of the House, had closed down the House of Representatives. So, there were 10 Representatives who were debating the bill which (if my memory serves me right) would open up the places that oil companies cannot drill. Another (and probably more sensible reason) is due to the speculation of oil futures (alternatives to gas). Markets (esp. future markets) are based on speculation (and sometimes fear). People (ex: short sellers) create rumors (like running out of gas in the world) which in turn, increase the stocks of the companies who are in the business of gas futures, which as a result, the gas prices increase. Now, the Securities & Exchange Commission (SEC) is responsible for overseeing the stock markets (NYSE, NASDAQ, S&P 500, &c.). A while ago (when the markets started going down) placed a ban on short selling.

KiraX, let's say you have like 100 shares of say, Shell Gas Company. I ask to borrow your shares (and I will return them to you at a later point in time and pay you interest) and because you think I'm cool and nice, you give them to me. I then in turn sell those shares to Sasami for like $300. I will then buy those share back from here at a lower rate (hopefully if the stocks go down) at say $100. Then, once I have them back I give them back to you, and I just made $200. That is what short selling is. And, the problem is that sometimes, the stocks don't go down, and if they go up, then I'm screwed.

[Sasami Jurai]

Thanks for clarifying, Athos

[Sasami Jurai]

Wow, it's so complicated

[Athos]

XD it isn't that complicated. I even used an example

[Sasami Jurai]

Sorry, political terms confuse me. It takes a long time to get 'em through my brain..

[Athos]

xD. It's more economic than anything. And gas for me now is like $3.33/gal. It makes me happy...kinda. I think it's going to continue to go down, until the market stabilizes itself. And I remind you, we are not in a war, we are involved in an armed-conflict (aka police action).