Interesting facts about gas



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).”

http://www.wtrg.com/prices.htm

http://news.bbc.co.uk/2/hi/business/3708951.stm
http://www.opec.org/library/FAQs/aboutOPEC/q20.htm

All Prices go up

People have been complaining a lot recently not just about oil prices going up, but food prices, Go to fullsize image
toy pries,
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paper prices
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….everything is going up! Sure you might place blame on “inflation” but there is something greater going on….something so simple that people are missing it.
Think logically with me.
All of those items require transportation right? (Food, toys, paper)…
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And Oil is a natural resource that Asia countries have quickly learned to embrace. This means that it is running out even faster than usual. So the answer to will oil ever drop soon = unlikely unless we start drilling in Canada/Alaska…
But then even after we take all of that oil in less than sixty years the price is going to sky rocket again. IT IS A NATURAL RESOURCE!
To answer the main question:
We know that oil is bound to stay a high price and likely continue to go up…
Continue to think logically with me.
If all other items in America require transportation, they also require oil.
If oil is high, then transportation costs more,
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if transportation costs more
then the final price is going to be higher than usual.
It is an artificial inflation.
Technically it is not inflation which is the problem, just oil.

Oil goes up and so does everything else.