According to Businessweek…
1. There Is No Shortage
Gasoline reserves on hand are at the highest levels since the early 1990s…
2. Demand Is DOWN, Yet Prices Are UP
3. Speculation is Up, and the Dollar Is Down
Exxon is a top earning company….why can’t they lower their income a bit in order to help everyone out and lower gas? The answer is not really about Exxon or even the Sadie Arabians. It is about the way Americans buy and sell oil…it is dumb. I do not have time to go into that today in this post.
People are confused about this issue: It is not OPEC and it is not Exxon, it is really the US Oil Market:
In today’s complex global markets, the price of crude oil is set by movements on the three major international petroleum exchanges, all of which have their own Web sites featuring information about oil prices. They are the New York Mercantile Exchange (NYMEX, http://www.nymex.com), the International Petroleum Exchange in London (IPE, http://www.ipe.uk.com) and the Singapore International Monetary Exchange (SIMEX, http://www.simex.com.sg).”