I was listening to a local AM station's news last week. They stated that oil closed at $80 a barrel. What I notice is the price drop does not translate to lower prices at the pump, it might drop a penny or two a week or so.
Now however if the roles are reversed, price at the pump goes up the next day and continues to rise.
I once bought into the supply and demand argument on gas prices. I don't any longer.
Also consider how gas prices seem to fall on a presidential election year, no matter if it's a Rep or a Dem....
Lower Gas Prices Not Enough to Lift US Economy: Are Gas Prices Still Too High?
Fef
2012/06/25 23:02:24
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Gas prices have fallen in the past few weeks, but the prices still hover around the average from the beginning of the recession four years ago.
FoxNews.com reports:
FoxNews.com reports:
Cheaper gas has yet to cause consumers to spend enough on other goods to boost the slumping economy.
Americans barely increased their spending at retail businesses this spring, leading economists to predict slower economic growth in the April-June quarter.
Read More: http://www.foxnews.com/us/2012/06/13/us-retail-sal...
Top Opinion
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Farnsworth 2012/06/25 23:18:14
As well many refineries have to shut down part or all production in the summer because tehy have to refit for the "summer blends" this lowers the supply levels. ANd of course not all crude is sold forteh purpose of refinement into fule, much is sold to produce other products we use such as those plasic milk jugs.
Gas is not a really good indicator of who the economy is doing because its a LAGGING marker meaning it doesn't directly trend with simple supply/demand principles. However teh price of gas will trend fairly well with the price of other retail goods... so you can look at the price of gas and know that milk will eitehr be higher or lower when gas prices drop it is actually a better value to go shopping than to buy gas, when gas is high shop less buy more gas.
and when you look on the pumps themselves ..
and see just HOW MUCH in taxes are added on per gallon (fed, State, Local)
BEGS The question ..
1. WHERE are all those tax dollars going per gallon (obviously .. not the roads -- especially where I am .. since ROADS are STILL unpaved)
2. Although the price per barrel is far less now ..
yet curiously .. the price has not dropped in proportion to the drop in price per barrel ..
and ..
DEMAND is lower .. FLAT (who can afford to drive or go anywhere .. when so many are just struggling to make ends meet and get to/from JOBS .. their WORK .. )
and prices of OTHER goods/services that increases .. those increases have eaten up luxury purchase of fuel (meaning .. less personal travel too)
There's a problem here ..
Can't be solely placed on the Fuel Producers ..
but on a myriad of factors that compound the problem.
Clinton
Obama
At lest one Democrat knew we had to drill here.
Washington USA Trend
Today 3.716 3.429 Prices Falling
Yesterday 3.739 3.444
One Week Ago 3.913 3.524
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