Less Driving Forces Gas Prices Down
David R. Baker, SF Chronicle
Tuesday, July 29, 2008
This year's record-shredding spike in gasoline prices has finally ended, with prices throughout the country falling by more than a penny per day.
And American drivers can thank themselves for the drop.
Shocked by prices that reached $4.11 per gallon nationwide and $4.61 in California, drivers stopped buying as much fuel. That cut the demand for gasoline's raw material, crude oil. Crude prices dropped as a result, taking gasoline prices with them.
Now the nationwide average for a gallon of regular gas is $3.96, 11 cents less than a week ago, according to the AAA auto club. California's average remains substantially higher, at $4.32, but it fell 12 cents in the last week. "Consumers have definitely sent a message," said AAA spokeswoman Cynthia Harris.
Now the nationwide average for a gallon of regular gas is $3.96, 11 cents less than a week ago, according to the AAA auto club. California's average remains substantially higher, at $4.32, but it fell 12 cents in the last week.
"Consumers have definitely sent a message," said AAA spokeswoman Cynthia Harris.
MEANWHILE, back at the ranch...
Oil Rises a Second Day on Concern Nigeria Violence Will Worsen
By Grant Smith
July 29 (Bloomberg) -- Crude oil rose for a second day on concern that attack on a Royal Dutch Shell Plc pipeline in Nigeria signaled a renewed campaign by militants.
Nigeria's main militant group, the Movement for the Emancipation of the Niger Delta, warned last week it would suspend a ceasefire to refute allegations it received government payouts. The group's attack on Shell's Nembe Creek trunk line yesterday may limit exports to U.S., where crude stockpiles may have fallen a second week, according to a Bloomberg survey.
``A slight shock like that sends prices fundamentally to the upside,'' Serene Gardiner, oil product analyst for Standard Chartered Plc in Dubai, said in a Bloomberg Television interview. ``The slack in the system at the moment between supply and demand is very thin.''
That's a great quote!
I'm having lunch in a few weeks with my high school history teacher -- one of the hands down most brilliant minds I've ever studied from -- to talk about this project -- I wonder if there is a way to breach the gap between history and journalism -- perspective, distance and what is happening now -- in this time -- as journalism moves (often regrettably) closer and closer to immediacy...