I was a political science major in college, not an economics major, or international relations major or anything like that, so maybe some can explain this to me:Given that in the last two weeks, the price of oil has dropped $4.33 a barrel and given that in the last two weeks, the price of gas at the pump has risen 12 cent a gallon, how am I supposed to believe the oil company execs when they say it's all about 'supply and demand' and not that they're just a bunch of evil, greedy bastards?
On second thought, don't bother. Trying to explain quantum physics would be an easier task. Quite clearly, the oil company execs are a bunch of evil, greedy bastards whether gas is above $4 a gallon or below $2 a gallon. At least there's some consistancy in that respect anyway.
POLT Listening to "Cars" by Gary Numan
Because he's hiding. - George W. Bush, on why Osama bin Laden is still at large, Jan 2005
4 comments:
There are at least two components to the oil to gasoline transition.
There's the price of extracting and transporting the crude oil.
Then there's the price of refining that crude. This time around it's the refineries playing with supply. Drop supply and keep demand high and you get higher prices.
The $4 a gallon was all speculative in nature and allowed by rules promulgated by the Bush Administration.
i wanna know the same thing. truthspew pretty much confirms your interpretation and my belief.
I gave up long ago trying to figure out the price of gas as it relates to the price of a barrel of oil.
I figure it is just greed.
Onanite
Remember from these topics last year, the prices are for what you SHOULD pay in about 8 weeks...given no other influences (like the speculators). The current gas prices are from oil prices of two months ago.
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