Prices are going down ordspråk

Prices are going down because the weather is warmer than normal. We've seen that across the country where prices are falling.

Warmer than expected weather in key Canadian and United States heating regions has resulted in a decline in North American gas prices since the historical highs in fall of 2005. Natural gas market prices respond to supply and demand. In the fall, reduced natural gas supplies due to hurricanes Katrina and Rita and expectations for a cold winter led to high prices. Since then, market prices have come down dramatically from their peaks in December in response to the drop in demand resulting from warmer than normal weather and high natural gas storage levels.

Crude oil prices that continued to stay below $65 a barrel this week, fueled by the warmer than normal winter weather across the U.S., have helped drive retail gasoline prices slightly lower. It remains to be seen however, if these relatively modest declines in retail gasoline prices will continue with the geo-political concerns over Iran's nuclear ambitions.

The long-range forecast is for more warm weather. There's no doubt about it. When it's cold in New York, the prices go higher, and when it's warmer, prices go lower.

Weather forecasts going warmer, colder, warmer will gyrate oil prices around.

Falling oil prices could put further pressure on gas prices that are already depressed due to unfavorable weather.

Now that the weather forecast has changed to predict warmer weather, the prices have come down quite significantly.

Dariusz Kowalczyk

Prices softened with the warmer weather and mild winter.

David Spigelmyer

At least in the near term we are seeing a sharp decrease in natural gas prices because the weather has been warmer nationwide and storage levels are running 30 percent above the five-year average. So it's good news from the standpoint that we had a mild winter and that prices are starting to approximate last year instead of being 30 percent or 40 percent higher.

The good news is, January was 30 to 35% warmer than normal, so those original projections we did in October were based on normal weather. So far, in 2006, we haven't seen normal weather. That's very good for the customer.

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Peter Sandén (1973-)

Peter Sandén

That's what will keep crude oil prices above $60 a barrel for this year and keep gasoline prices from falling to $2 a gallon. We are forecasting prices to go back up this summer ... above $2.50.

Rising oil prices are quite unhelpful, and falling prices are quite helpful in terms of giving stimulus to the economy. Lower prices feed through pretty well to everyone immediately.

What we are seeing is that these numbers are coming in line with other confidence figures, which shot ahead in May and June with oil prices falling, and now with oil prices soaring, we are seeing the effect from higher prices at the pump.

Michael Englund

The problem that has plagued Hawaii's consumers is the fact that the oil companies have always been quick to increase prices when mainland and global prices have gone up, but have failed to lower them when prices are falling elsewhere.

The economy will slow next year. On the plus side we have falling gas prices but that decline won't be enough to offset falling home prices.

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