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Old 07-29-2010, 10:21 AM
 
Location: Dallas, Texas
164 posts, read 500,648 times
Reputation: 101

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Every summer, we heard about how the price of fuel has gone up because of increased demand from more road travelers. This year, because of the negative attention from the worst fuel spill in history in the Gulf, the major gas companies are afraid to raise fuel costs.

If it was a miinor spill in another country, the gas companies would have raised the prices saying the supply is limited. Remember Hurricane Katrina and Wilma? Gas prices shot up significantly at that time because the gas companies claimed that the supply went down.

Whatever happened to the supply and demand claims now? Was the supply unaffected by the worst fuel spill in history?

There is no question that the fuel companies have intentionally kept the prices low to keep the negative publicity down. People will not tolerate another huge gas hike. They want more fuel efficient cars and the market is finally starting to deliver them.
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Old 07-29-2010, 10:28 AM
 
14,780 posts, read 43,582,793 times
Reputation: 14621
ummm...the supply of oil isn't the issue unless we are talking about complete production shut down of major areas. What is a problem is refining capacity. Since a large portion of refineries exist on the Gulf Coast, when a hurricane or other natural disaster happens there, it does effect the gasoline and diesel supply.

The most direct reason that fuel prices are steady this summer is that the economy is still slow and people are driving less. Less demand = lower prices.
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Old 07-29-2010, 10:43 AM
 
Location: Pomona
1,955 posts, read 10,964,593 times
Reputation: 1562
Ditto. Also, the price for a barrel of oil has remained pretty steady, hence the pump prices have been pretty stable too.
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Old 07-29-2010, 11:09 AM
 
Location: Sinking in the Great Salt Lake
13,139 posts, read 22,761,037 times
Reputation: 14116
Demand probably isn't particularly high, thanks to the "recession". Also, prices are determined by how much profit companies think they can get out of a gallon of gas with consideration for the circumstances of the moment but not determined by them. Bad press is bad for business, so the oil dogs are trying to maintain a low profile at the moment.

I'm gonna get a little conspiracy theorist here, but I wonder if the big price jack up to 150.00 a barrel a couple years back wasn't just a "test" to see how exactly the world would react to really expensive oil, being that peak oil is nearly upon us.

The results from only 1 summer of high prices? A gigantic financial collapse and a depression that isn't called a depression. Is it just coincidence? maybe not...a house of cards falls all too easy, after all.
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