Why Does The Price Of Oil Keep Going Up ?

[anabolicrhino]

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I thought that if we controlled all the Iraqi oil, the price would go down, instead it has gone up since victory was declared in 2003 !

any opinions ?

 

[Dwight Schrute]

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I thought that if we controlled all the Iraqi oil, the price would go down, instead it has gone up since victory was declared in 2003 !

any opinions ?

You keep buying it, therefore they keep raising it until you stop buying it. Whether you control it or not is irrelevant. Controlling it doesnt remove the need for profits.

 

[anabolicrhino]

You keep buying it, therefore they keep raising it until you stop buying it. Whether you control it or not is irrelevant. Controlling it doesnt remove the need for profits.

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Now I am even more puzzled ?

 

[Dwight Schrute]

Now I am even more puzzled ?

Thats not possible.


(sorry, you left that wide open)

 

[CDB]

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Now I am even more puzzled ?

Gas inventories and demand, while tied to and influenced by crude oil, aren't the same thing as crude oil.

 

[Tiberius]

Ok this one confuses me. Everyone talks about how little money gas stations make at the pump. Explain this one then:

3 local Hess stations have gas right now for 2.33 a gallon. EVery other gas station in the area sells it for about 2.89. Explain how this is possible.

 

[CDB]

Ok this one confuses me. Everyone talks about how little money gas stations make at the pump. Explain this one then:

3 local Hess stations have gas right now for 2.33 a gallon. EVery other gas station in the area sells it for about 2.89. Explain how this is possible.

Depends on the supplier. There's a few stations here that have lower prices too, but the gas they're selling is pretty raw, has no detergents and what not. There's also a few stations here that are routinely 20-30 cents more per gallon because they're in exclusive areas where people can afford to drive and fuel up Hummers. Prices were never supposed to be uniform or stable, so don't be surprised when they aren't, even though over time they do tend that way. In fact before we went off the gold standard prices tended to be more volatile in the short term. If I remember right one affect of constant inflation (perhaps some see it as a benefit) is a softening of short term price fluctuations that would be much more pronounced on a pure commodity standard.