Over A Barrel…
I readily admit I’m not the brightest bulb on the marque—but I don’t understand this surge in gasoline prices at the pump…
It wasn’t but a couple of weeks ago they were talking about how the record oversupply of gasoline stocks was forcing the price at the pump to fall sharply…
You can read that article here–where they expected the glut to drop the price by up to 50 cents a gallon.
With-in a day or two of that prediction, the price at the pump began to climb again..
Now, although we’re seeing crude hit record highs of $102 dollars a barrel—the glut of oil continues to grow in this country…
The weekly report from the Energy Information Administration says in part:
U.S. crude oil stocks rose last week for the seventh week while sluggish demand pushed gasoline supply up for the 16th week in a row to its highest level in 14 years.
Now, I’d always heard that prices of goods are based on supply and demand.
BIG DEMAND + SMALL SUPPLY= HIGHER PRICES
SMALL DEMAND +BIG SUPPLY=LOWER PRICES
So if we’ve got SO MUCH GAS sitting around—why is the price spiraling up at the pump—with predictions now of $4.00 a gallon in the next few weeks?
Something doesn’t add up…
Adding more frustration to all of this, the congress has passed a bill that’ll hit the oil companies with 18-Billion dollars in new taxes…
That money is supposed to be used to help us finance alternative energy.
Although the bill has yet to get to the president’s desk—I know that if it’s approved—no oil company will pay a penny of that tax..
Like any other corporation, they’ll pass the cost on to the consumer.
If the price of gas continues to go up, we may all be paying so much for gasoline—and associated goods that depend on gasoline—that we’ll be WEARING the oil barrel !
—Steve
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