Gas Prices Highest EVER For This Time of Year (polls, independence, lobbyists)
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I'm not disputing the idea of peak oil, but the fact is that oil prices have remained slightly above or slightly below 100 dollars per barrel for several years now. With oil prices fairly stable, the only two things that have been increasing are the price of gasoline and the profits of the companies that sell it.
Peak Oil dictates that prices will remain flat for several years, then spike upward, then stay flat again for another period of time, then spike again, rinse and repeat. And that is exactly what is happening now. Its only a mater of time before we encounter another big spike.
Oil speculation is a natural part of this peak oil phenomenon, but it cannot fully account for all of it. Naturally, there is going to be a response from investors whenever you have major price fluctuations in an important commodity, but that's just a part of the story. And it is to be expected.
Average price of gas at the pump..January 2012 was $3.40
ATLANTA, Feb. 22, 2012: Small and Fuel-Efficient Cars Make Big Gains as Gas Prices Increase | PRNewswire | Bradenton Herald Today (http://www.bradenton.com/2012/02/22/3894228/small-and-fuel-efficient-cars.html - broken link)
According to GasBuddy.com, motorists are shelling out $5.89 for a gallon of regular gas at a Shell station in Lake Buena Vista, topping out at $5.99 a gallon for premium. It doesn’t get better at a Suncoast Energy station in Orlando, where drivers are paying $5.79 for a gallon of regular.
“Prices over in the Disney World area are much higher than any other place in Florida,” Jessica Brady, AAA spokeswoman, told CBS Tampa, adding that people regularly complain about gas prices in that area.
But the Federal Reserve, in its misguided attempt to pump up home values and stock prices with zero interest and massive bond market interventions, has also pumped up commodity prices again...as happened in 2011. So I'm not as much in a "blame Obama mood" as I am in a "blame Ben Bernanke mood" for the current gasoline prices. Obama's policies, however, will most certainly lead to higher gasoline prices in the future.
So, your theory is that raising the money supply caused commodity prices to rise, as in 2011? Below, is a graph of commodities. 2011 had a decrease in commodity prices and 2010's rise was similar to the period before the economic collapse.
Even though the Fed increased the money supply in order to combat deflation:
There is no empirical support for the theory that raising the money supply was responsible for commodity prices rising because the rise in commodity prices was lower than previous periods, when the money supply wasn't increased.
According to GasBuddy.com, motorists are shelling out $5.89 for a gallon of regular gas at a Shell station in Lake Buena Vista, topping out at $5.99 a gallon for premium. It doesn’t get better at a Suncoast Energy station in Orlando, where drivers are paying $5.79 for a gallon of regular.
“Prices over in the Disney World area are much higher than any other place in Florida,” Jessica Brady, AAA spokeswoman, told CBS Tampa, adding that people regularly complain about gas prices in that area.
I live in that area and don't use garages that gouge........ most garages here are around $3.61 per Gallon. Garages close to Disney who gouge rely on Tourists who don't know any better nut locals keep out of the very few Garages who have high gas prices here.
You try to make it seem that we have really high Gas prices here in Florida but we don't!
Average price of gas at the pump..January 2012 was $3.40
ATLANTA, Feb. 22, 2012: Small and Fuel-Efficient Cars Make Big Gains as Gas Prices Increase | PRNewswire | Bradenton Herald Today (http://www.bradenton.com/2012/02/22/3894228/small-and-fuel-efficient-cars.html - broken link)
What you ignore is that the $1.84 price was right after the economic collapse and is not typical.
I'd trade low gas prices for avoiding a depression any day of the week.
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