Remember, the reason for all the world's problems: Bush, GOP, corporations no need to explore further
Gas prices are driven by several factors that all go together to result in higher gas prices. -Gasoline is a commodity, and can be sold/shipped regionally and globally. Higher demand in emerging markets drives up prices. -The input is more expensive: oil prices are higher (gasoline prices lag oil prices as today's oil being refined was purchased as a future a month or so ago). Oil is higher due to emerging markets' higher demand globally. -Higher manufacturing (refining) requirements for safety and cleanliness result in higher output. -Higher than usual number of refinery outages and down time for maintenance in the last few months. Since the Government has made it nearly impossible to build new refineries since the 1970s, companies will have to spend more and more refining time down to maintain our aging infrastructure. -EPA standards are more expensive to produce and we are heading into the time of year that refineries lower output to switch to more expensive summer formulas. -Lower supply of basic gasoline as US demand has leveled off...refineries are producing other products from the oil that they can make a higher profit margin on. Remember that there are hundreds of products produced from oil. -Probably the biggest reason: the devaluation of the US Dollar. Oil (the #1 input into a price of gas) is pegged to the US Dollar. The cheaper the Dollar, the more expensive the oil.
oh please -- you're not seriously going to trot out the "oh but the banks aren't lending" line again, are you?
"oh please" yourself -- You've never been able to refute that point. Despite tripling the monetary base, M2/M3 have been growing at the same rate the past decade. ALL inflation indicators (even those championed by the hyperinflationista Peter Schiff) point to a disinflationary environment. The only argument you have is that gas prices were low in January 2009...conveniently ignoring the fact that a mere 6 months earlier (in July 2008), they were at record highs. I'm still waiting for you to wow me with your explanation for how these contrary facts still fit in with your "money-printing" theory.
Just bear in mind that for gasoline and natural gas there are both an impetus for immediate and ongoing physical delivery, and finite storage space for over-delivered product, that contribute to pricing factors as well.
The US is producing more oil than it has in more than 20 years. It is not a true supply problem. The current price issue is because refineries are switching to a "Summer Blend" which strains supplies. Price will go down in a few weeks. China and India started really affecting oil supplies in 2007. You will never have $2 gas anymore. Don't care who is Presdient.
not convincing and lol at you trying to throw in as many important sounding people and jargon as you can. You're starting to sound like Northside Storm
It's funnier that you're not addressing any of my points. How about I make it simpler with no "important sounding people or jargon"? - Though bank reserves have tripled, the money supply isn't growing any faster than it has been the past 10 years - Even "economists" that normally freak out about inflation show decreasing inflation in their models/data. - You ignore the fact that only six months before Obama took office, gas prices were at all time highs. Your move lil' buddy.
You're too academic, and not grounded in reality. Get your head out of your academics and jargon. If all your academia-loving comments are true, then how do you explain the multitude of articles such as this one? http://www.businessspectator.com.au...es-climb-on-weak-US-dollar-4AKMP?OpenDocument Oil prices climb on weak US dollar Published 2:45 AM, 26 Jan 2013 Last update 2:45 AM, 26 Jan 2013 Global oil prices have advanced, buoyed by a weakening US dollar, upbeat German economic data and gains on European stock markets, dealers said. Brent North Sea crude for delivery in March rose 41 cents to $US113.69 a barrel in London midday deals. New York's main contract, light sweet crude for March, won 47 cents to $96.42 a barrel. In foreign exchange trade on Friday, the European single currency surged to $1.3465 - which marked the highest level since February 29, 2012. The shared eurozone unit soared following news that German business confidence had struck the highest level in seven months. The Ifo institute's closely watched business climate index for Europe's top economy rose to 104.2 points in January - its highest reading since June - from 102.4 points a month earlier. The euro also spiked after the European Central Bank revealed that 278 eurozone banks will repay early 137.16 billion euros ($A176.53 billion) of ultra-cheap three-year loans made available to them last year in emergency liquidity measures. "Crude oil prices extended gains on Friday ... mainly supported by the weaker US dollar that offered strong upside momentum to the market," said analyst Myrto Sokou at the Sucden brokerage in London. "In the meantime, European equity markets continue to post fairly strong gains." A weak greenback tends to stimulate demand for dollar-priced crude, which becomes cheaper for buyers using stronger currencies like the euro. That tends to stimulate demand and spark higher price levels. European stock markets also advanced on Friday, with Frankfurt hitting a five-year high as the German data helped offset news that the British economy had contracted by 0.3 per cent in the fourth quarter of last year. Crude futures had jumped on Thursday on the back of growing optimism after strong economic indicators in the US, China and Europe.
You must've forgotten everything that happened before 4 years ago then. Oil and the USD aren't always negatively correlated. Google a chart going back to say 1990, and you'll see periods where oil and the USD were both rising. You're suffering from confirmation bias just because there's negative correlation at the moment. Bottom line, there's a heckuva lot more that goes into the price of oil than the strength of the dollar. You're reasoning is far too simplistic.
Let's not forget that the prices were so low because the U.S. was going through one of the worst recessions in our history. Now I am not one of these people who will blame the president for low or high gas prices, I think they get unfair blame or credit depending upon how you look at it. You're really doing nothing different than these guys blaming Bush by insinuating that Obama was/is somehow at fault so in essence your just as ignorant as them on the subject.
