Demand for gas peaked around Labor Day and has declined by some 600,000 barrels a day according to reports I read last month. At the same time, the production situation has improved somewhat following the hurricanes. As a result, gasoline prices have dropped substancially (about 70 cents per gallon in my local area) over the last 2 months.

Has the same supply and demand situation improved for natural gas? Not that I've seen. Throughout the 1990s, the government encouraged factories and power plants were encouraged to switch to natural gas because it burns cleaner than other fuels. However, production didn't increase nearly so much (check what happens whenever someone applies for a permit to drill for new gas supplies). As a result, natural gas prices have increased over the years. Any disruption to production or delivery also drives up the price.

As for lumber, what do you think has happened to demand over the past few months? Hurricanes in Florida, Alabama, Mississippi, Lousianna, and Texas damaged untold thousands of homes and businesses. At the same time, new housing demand remains high in most of the rest of the country. In the meantime, check what has happened to the American timber industry over the last 20 years or so. Demand for building materials isn't just high here in the US. China is undergoing a boom and is buying all types of building materials from steel to lumber to concrete. As a result, there is a reportage shortage of concrete, lumber prices are increasing, and so are steel prices.

Supply and demand - it's not just a good idea. It's the law.