In April Gas To Drop To $1.95 A Gallon – Why Will This Happen?

Over at BusinessWeek their analysis is that gas may fall to $1.95 a gallon some time in April. My question is why? Are people still being allowed to buy oil futures? Are we consumers still being gouged by the idiots who make money by controlling our gas prices?

In a recent article it states that:

The April contract formed a so-called hanging man formation, signaling a rally from early February has lost momentum and prices will head lower, according to Bill Adams, an energy trader at ACT, a currency and commodity specialist in Zurich.

Can someone explain to me why our energy is being allowed to be traded? Or our food?

Comments welcome.

Source.

Article Written by

I have been writing for LockerGnome since relocating to Missouri seven years ago, where I continue to be a technology enthusiast who enjoys playing with the newest and latest gadgets.

  • http://www.survivaltime.org Survival Time

    It’s the old carrot on a stick routine!….only this time it’s more stick than carrot. As for price fluctuation due to futures traders…personally I think all ‘those’ people should be beat to death with baseball bats.

    No, more than likely Uncle Same (not misspelled) is ‘giving’ us something to shut us up…;because They’re about to do something very U(N-popular with you and I (the people who have to WORK for a living).

    I heard that Citibank accidentally leaked a memo that they will be holding deposits for 7 days, later when the FURY of this memo erupted…a statement (finger pointing) said it was FDIC who’s instituting this with ALL banks not just CITI as of early April (coincidence huh?!…no, I think not!).

    Personally, I believe the end is near and these greedy S.O.B.’s are taking one last swim in ouir pool before pulling it’s plug.

    Y’all better start stockin up on water, food and Ammo…things are definately about to get deep!!!

  • Cirian75

    Try uk prices

    £1.15 per liter

    3.8 litres per us gallon

    it’s a scary price !

  • David Clark

    I live in the Oil Patch…. It ain’t groing to drop. Watch out;producers are heading back to work because all that 140 buck stuff is about gone. You would be suprised how much oil we have..and natural gas supplies in the ground will out last me, my children and grand children’s kids..and the oldest is just 16.

    A buck ninety five,eh. Ain’t happening. I’ll bet you a Combo Number 4 at Burger King if it does.

    If you want cheaper clean transportation,then make a massive and passionate move to natural gas. Combustion engines love it. Re-tooling our automotive industry isn’t too big a deal but the delivery model is. The US hasn’t built a new refinery in almost 25 years. I think Santa Barbara is an excellent place for a new Chevron refinery. People in California have no right to complain about higher gas prices. Oh the EV is the solution,eh? Excellent idea.Tell Congress to to the same thing we did when the US made the quantum leap into the nuclear age with the Manhattan Project. We went from almost nothing to a functioning reactor in a very few short years. Do you really want to tell me we can’t pour brains,sweat equity and money into EV and do that all over again to solve this choke hold the Middle East has on our economy? Talks cheap, hydrocarbons aren’t . Skip the rhetoric. Solutions matter and we keep rewording old questions rather that making a full assault with the solutions we isolated during the 1970′s Oil Embargo. Those solutions haven’t changed since then but Americans want 60MPG SUVs and buck a gallon gas.

    Ok,I’m done. Sticks and stones will……

    • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

      Hi David,
      I often thought that if we took all of the brain power from those at NASA and put them to work on solving some of our energy issues, that they could actually come up with some results. :-)

  • http://mpgomatic.com MPGomatic

    Of course we’re being gouged and it will only get worse over time. =) Keep in mind, that $1.95 isn’t *retail* …

  • Cliffystones

    Hey Ron!

    Shouldn’t you have said “manipulating” as opposed to “controlling”?

    • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

      Cliffstones – good point! LOL

  • Mr. E

    Heard one radio program trying to track down who these mysterious oil speculators are. Turns out, a big part of the growth in this market is pension plans and other institutional investors trying to find a safe place to put their money — your money — while the stock market was tanking.

    So when we all lost our jobs and our homes and our retirement investments at the same time that oil was skyrocketing in ’08, it was all for the same reasons.

    If that report was accurate, maybe ‘manipulating’ and ‘controlling’ are both a bit of a reach. There may not be any grand, shadowy conspiracy here. Prices went up because the number of people trying to buy oil futures — the demand — far exceeded the supply all of a sudden.

    That said, I still think we need more regulation and transparency in this kind of market.

    Not that I want Big Brother watching everything that anybody ever does, but it’s ridiculous to have oversight entities like the SEC over stocks and bonds, the Federal Reserve with its tentacles threaded through the banking system, but then let the oil futures market hold the economy hostage for lack of transparency.

    In 2008, nobody could see what was going on, so nobody could figure out a way to fix it. Solution? Open the shutters and clean the glass off so we can see what’s happpening.

    Then again, if the bureaucrats installed to regulate oil futures trading were to do as good a job at whoring themselves out to the people they’re supposed to be watch as the SEC and the Fed have, it wouldn’t help us much anyway.

  • Alex

    Gas at $1.95 a gallon???????????!!!!!!! Maybe behind the Pearly Gates. Greed is the plan and that comes from the top. You know, the CEOs absolutely must get paid all those obscene salaries and bonuses even though all of the work is done by the blue-collar workers who don’t get bonuses. As far as automobile gas mileage I know that the 100 MPG carburetor has been in existence for over 60 year. As far as hybrid autos, there was a mechanic in Santa Monica, CA more than 30 years ago who was converting cars to hybrid that got over 200 MPG. These are things that the oil companies don’t want and the auto manufacturers are more than glad to give the oil companies what they do want.

    Yes, we do have more oil than we need. Many don’t know it but there are laws regarding the amount of oil that can be extracted in this country. Most of what is being extracted in the U.S. is exported at the same rates as what we import from other countries.