DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
Gas has been going up for quite some time. Why don't you ever hear anything about it on the news? Oh, it must still be Bush's fault.
ReplyDeletestimulus working? Bonuses cut out, but gas companies are making their own.
ReplyDeleteChange, how is that change working for those Liberal Dumb ass Democrats now....
Somehow, somewhere these Democrats are going to be rich from all this sit back and laugh at us. I hope Hell will be comfortable for these individuals
Is there a reason for the jump?
ReplyDeleteWhy is gas going up when the price per barrel is low?
ReplyDeleteWhat is it with the gas prices going up? Demand is down this time of the year.
ReplyDeleteIt is probably another case of the oil companies trying to gouge us again.
If the economy is going to make a comeback, it is imperative to stabilize the price of fuel during the next year.
Is there a reason why gasoline has jumped .50 a gallon in a week? other than that the oil companies can do what they like....
ReplyDeleteSpeculation.. commodities trading. Wall street is stealing us blind on all fronts.
ReplyDeleteOne reason is that the dollar keeps falling. inflation very well may hit next year and everything will cost more as the dollar will be almost worthless. U.S. oil companies make most of their money overseas, the government makes a lot more for doing nothing than the oil companies are able to take home. and do not get confused by gross income and net profits.
ReplyDeleteYet another industry that should be nationalized...
ReplyDeleteMD_Progressive
12:27
ReplyDeleteThe price of a barrel of oil is at a 12 month high. You never hear about this on MSM!! God forbid they broadcast anything negative during this administration.
You cannot blame this on one person or party this started with Clintion and Bush and now Obbama
ReplyDeleteUh, demand is not down this time of year. It is way up as we approach the holidays. It always is, and this always happen. Less of a fault whoever is in office and more an economic inconvenience we have to learn to live with or take the bus.
ReplyDeleteThree reasons for the climb
ReplyDelete1.US crude is in lower supply than usual
2 tensions overseas in Iraq and Iran
3 Lower value of the dollar.
Sucks
Prices would be lower if government would get out of the way and allow us to drill here, build nuclear power plants and stop taxing businesses so damn much and trying to line its pockets with money from those who actually earned it.
ReplyDeleteHere we go again!
ReplyDeleteWeather starting to get cold again. Guess they want us common people who are lucky enough to even have a job & are working to freeze this winter again!!!
Don't worry for everyone of all our wonderful politicians will be nice and warm this winter for they can afford it.
Wingnuts amaze me.
ReplyDeleteThey hate government ivolvement and now they hate free market.
Its Bush's's fault...... It always Bush's fault..
ReplyDeleteAccording to my records, the average price for premium has been $2.38 over the past year. Sounds like it's going to be around $3 today?
ReplyDeleteThere is actually plenty of crude inventory in the US. Once again, the refineries have found another reason to cut production of gas, forcing a bottleneck of supply. All of the different blends they have to make don't help us, either. If they had good inventory stockpiles, prices would not spike as much when it comes to gasoline.
Because demand is so inelastic (you can't stop using gas altogether, you just have to pay the price) the oil companies can screw us all we want on short-term price spikes. Hopefully it will hurt them in the long run as Americans wise up and demand more fuel efficient vehicles. If we changed our vehicles and habits to cut our demand by 10%, we'd see a HUGE drop in prices.
Investors are also buying up oil futures as a hedge against the weak dollar. These investors have lots of money and no intent to actually take possession of the oil, so there's "artificial" money in the market. Additional money chasing after the same supply drives up prices. This is trickling down to the gas pump.
My observation is that a gallon of gas is roughly .3x the price of a barrel. We're around $80pb now, which seems that we should be around $2.40/gal. So it seems that the refineries are screwing us by around 16%.
Because demand of actual users is not in-line with pricing (due to speculators), there's may be a day of reckoning where the current asset bubble pops like it did around a year ago. Who knows when it will happen - this mostly depends on if the dollar stabilizes, I think. Treasury either just did or is about to have it's largest auction EVER due to our poor spending. It will take some time for the market to absorb and accurately set prices for this debt over the long term. But the short term outlook is probably weaker dollar.
We can also hope that OPEC et al have extra capacity. If they missed their demand estimates the recent uptick in pricing may encourage them to increase output to lower prices. They might publicly want to see $90 oil, but when you need to make money from your oil you'll take whatever you can get to raise the funds.
That's your macro economics lesson of the day. Hope it made sense. Thanks, SU Econ professors!
3:47pm, demand is down because everything else has gone up, I mean groceries, electric etc. Normally this time of year people travel alot for the holidays, but that's not happening either, so you can thank your ECON professors only so much since they missed the common sense part. People can't afford to just go out and buy a fuel efficient vehicle so that's not going to affect prices day to day anyway. The price of the barrel is at a 12 month high because the Arab countries have decided to cut production again, refineries are dealing with winter blends, and speculations are higher on oil than the falling dollar that the treasury is printing in the billions. Thanks to WorWic for my insight and accouting degree!!!
ReplyDeleteWhatever the market will bear.
ReplyDeleteMany people say they believe in a Free Market. That's because they don't understand their role as a consumer in the Free Market.
Free Market is for the rich people to justify enslaving the workers.
The economy is terrible and the big oil companies continue to make their billions in profit and screw the working class with increases in the price for gas...
ReplyDeleteAnd big O still is against raising domestic supplies of oil. Wait a few years these will be the good old days.
ReplyDeleteDrilling here will not make a difference. Whatever oil we produce goes on the world oil market, it does not stay here.
ReplyDeleteGreedy america.
ReplyDeleteIts $2.77 for unleaded plus...$2.59 for unleaded.
ReplyDeleteQuick lets nationlize the petroleum companines! We can fix everything! .99 cent gas for all!
What a bunch of morons.
Can't blame it on one person?
ReplyDeleteGive me a break.
Obama promised to bankrupt the Coal Companies and now his EPA is vetoing every single new Coal Mine. He even had them undo a Coal Mine permit. He went on to say Electricity Rates would skyrocket. Just wait.
Obma voted for the "Bush" stimulus and played a huge role in it's passing along with his parties which controlled the House and Senate it passed by their votes.
Obama then spent 1.7 Trillion Dollars more than we had and in less than a year.
That is why we are paying more for gasoline. This is before Cap and Tax the heck out of us. Which will tax chicken and beef making both cost $10 / pound.
Change we can believe in.