It’s not “simple supply and demand”. There’s a cartel involved. Ever heard of OPEC? Supply is affected every time these guys meet. They set prices.
As far as these fuel prices leading to a recession, they’ve been on a steep upward trend for over a year, and our economy is in very good shape. As long as oil stays in the 35-45 dollar range pump prices will stablize, and There will still be an incintive for domestic exploration.
yeah and dont you know that your president is their best buddy? it really is just a matter of supply, demand and wanning natural resources… . the reason fuel is costing more is because its getting more expensive to find and get out of the ground… . the US is tapped out and most other places are declining allready…
Saudi Arabia is one of the only major exporters that you have left and it seems like they cant pump any more than they are allready doing… . theyve said they will up production several times this year and they have not met those promises because they cant. …
This is NOT simple supply demand economics. I was discussing this on another thread earlier and hedo hit it on the head here. This is all a speculative spike in price. Demand did not increase by almost 100% in the past 18 months. Yes there are more outside forces, but the dramatic increase is purely speculative. I don’t know that gas will settle as low as hedo predicted, that would be nice, but the price will come down.
It would, however, be nice if someone would look into increasing capacity of refineries. And no, the U.S. and everyone else but the Saudies are not running out of oil. There exists enough known oil supplies to last us 200+ years–even at expected consumption rates. There exists huge untapped reserves right to our North, and I bet vroom is sitting on them waiting to turn a tidy penny when the rush for northern oil begins.
I do think that this should be looked at as a great gouging though by those in the petro field. That is the biggest crime of this whole scenario. This could be lessened, but too much money is being made by the few powers in the industry [/quote]
I personally don’t see gas prices coming down. I believe OPEC will get as much for there oil as they can. What power do we have that sway their behavior? The only one I can think of is energy conservation. I personally don’t see that happening either.