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Why are gas prices climbing again? Here's the answer

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  • Why are gas prices climbing again? Here's the answer

    Gas Pump Thievery: Who's Really Behind the Rising Prices at the Pumps?
    By Jim Hightower, AlterNet
    Posted on June 25, 2009, Printed on June 25, 2009
    http://www.alternet.org/story/140889/

    Like a Fourth of July crescendo of fireworks, our gasoline prices are rising higher and higher. While this is tough on consumers, we're assured by a covey of tongue-clucking industry analysts that nothing can be done about it, for it's simply the law of supply and demand in action -- so suck it up, and pay up.

    But hold your BPExxonMobilShellChevron horses right there. Supply and demand? The supply of crude oil has risen this year to its highest level in nearly two decades, even while the demand for gasoline has dropped dramatically, having fallen this month to a 10-year low.

    Let's see -- supply up, demand down. That's a classic market formula for cheaper prices at the pump. Yet our prices have steadily moved up, rising by two-thirds since the beginning of the year (and by 60 cents a gallon in the past two months alone).

    What's going on here is not the "magic of the marketplace," but some hocus-pocus by brand-name dealers. What might surprise you, though, is that the wheeler-dealers now jacking up our pump prices don't operate under the BPExxonMobilShellChevron brands -- but the logos of Goldman Sachs, Morgan Stanley and other Wall Street traders that have been placing vast, unregulated, secretive bets...
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  • #2
    Re: Why are gas prices climbing again? Here's the answer

    well, technically, since it's still being purchased in vast amounts, it is still drastically under priced...
    1997 Factory Crown Victoria w/ extended tanks ~~ Clunkerized!
    2000 Bi-Fuel Expedition --> ~~ Sold ~~ <--

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    • #3
      Re: Why are gas prices climbing again? Here's the answer

      It is supply and demand, just a different sort of supply and demand. All of this market activity is inter-tangled. These big name, wealthy investors get money but what else is at stake? Your 401k accounts and treasuries of different sorts. In short, a lot of investment funds that can be available to the normal individual will be affected by how these big companies make money on the stock market and petroleum based derivatives. Just remember, these companies are betting that oil will be at a certain price by a certain date. If oil is not at that price, they lose.

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