None of the above. It's all about supply and demand. China's thirst for much more oil to support their increasing industries caused an international shortage. The dollar is way weakened too, which, sine the oil market deals in US dollars, causes gasoline products to go up. The US companies sell based on the market place. The only way to artificallh bring down prices would be price control. That has never worked and would be a disaster, as US companies would sell overseas, or just stop production.
paineite - 12 years ago
Seems to me that you left out the number one contestant. My understanding of the current data is that not less than $1.00 of the current $3.50 avg/gal is the product of nothing more than speculation on the futures and related markets. This is, of course, driven by all the war-mongering talk against Iran.
None of the above. It's all about supply and demand. China's thirst for much more oil to support their increasing industries caused an international shortage. The dollar is way weakened too, which, sine the oil market deals in US dollars, causes gasoline products to go up. The US companies sell based on the market place. The only way to artificallh bring down prices would be price control. That has never worked and would be a disaster, as US companies would sell overseas, or just stop production.
Seems to me that you left out the number one contestant. My understanding of the current data is that not less than $1.00 of the current $3.50 avg/gal is the product of nothing more than speculation on the futures and related markets. This is, of course, driven by all the war-mongering talk against Iran.