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In some places its even more expensive!
Last time at almost $4, I remember Neal Cavuto on Fox, arguing with Bill O'Reilly that the astronomical rise is just a function of demand and supply. Look - he claimed - China and India became major consumers of oil and that's what is driving prices up... (He cannot explain what happened to the Chinese when oil was $2. They were probably sleeping)
However, he wasn't able to convince even Bill.
This time, he and his friends remain silent. Nobody explains why the speculators destroy our economy.
As for Obama's offshore drilling suggestion - it won't make much of a difference:
1) The "domestic" oil, won't remain in the US. Alaskan oil for example goes to China. The future oil from CA, may feed... Korea.
2) If global supply grows, OPEC will reduce their production to keep prices up. One touch on a Saudi button its all that is needed.
3) The cost of US domestic oil for US consume will not be capped/ regulated. Nobody can do that. It's America, isn't it?
4) The only positive is that prospects of new oil may drive away speculators for some time, but thats about all.
In some places its even more expensive!
Last time at almost $4, I remember Neal Cavuto on Fox, arguing with Bill O'Reilly that the astronomical rise is just a function of demand and supply. Look - he claimed - China and India became major consumers of oil and that's what is driving prices up... (He cannot explain what happened to the Chinese when oil was $2. They were probably sleeping)
However, he wasn't able to convince even Bill.
This time, he and his friends remain silent. Nobody explains why the speculators destroy our economy.
As for Obama's offshore drilling suggestion - it won't make much of a difference:
1) The "domestic" oil, won't remain in the US. Alaskan oil for example goes to China. The future oil from CA, may feed... Korea.
2) If global supply grows, OPEC will reduce their production to keep prices up. One touch on a Saudi button its all that is needed.
3) The cost of US domestic oil for US consume will not be capped/ regulated. Nobody can do that. It's America, isn't it?
4) The only positive is that prospects of new oil may drive away speculators for some time, but thats about all.
Ok here is how it works there are seasonal fluctuations in the consumption of gasoline. In the summer when it gets warm and people drive, they use gas causing the price to go up. Now during the economic downturn countries like India, and Indonesia relaxed fuel price supports for their consumers. (You watch Fox remember when they were showing people in India protesting that.) The fact of the matter is that when places like India relaxed their price supports many consumers in places India could no longer afford gasoline and as such the price declined accordingly, and quickly since gasoline is what is know as an inelastic commodity.
Remember 6 years ago, when 3 dollars a gallon was crazy high? Then, they sent it up to 4 dollars a gallon, then dropped it down to 2.50, to make you happy. Now 3 doesn't seem so high, so it'll stay here for a while.
Like any high demand but limited resource, oil prices are bound to increase gradually. Besides seasonal impact, the rapid rise in oil prices couple of years ago was not natural at all, so these two situations may not be directly comparable. This (http://www.nicholas.duke.edu/thegreengrok/graphics/2008oilprices/image_preview - broken link) is how oil prices showed up in 2008. We will have to wait and see if a similar trend follows the current increase.
Hit $3 again? I wished it would here in far northern California. We have been above $3 since last summer. We have been at $3.25 for a good six weeks now. During the high we hit $4.80 for regular and $5.16 for diesel. Our low last summer was $2.97 for regular.
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(He cannot explain what happened to the Chinese when oil was $2. They were probably sleeping)
Here it goes again---it is getting ready for the summer travel.
