Yesterday, the EIA announced that oil consumption for the first half of 2008 dropped by the largest percentage in 26 years. Demand for oil decreased by an average of 800,000 barrels per day compared to this time last year.
Also according to the EIA, oil supplies increased by over 100,000 barrels. However, the price of gasoline went from $3.07/gallon to $4.11/gallon.
Supplies are up. Demand is WAY down. But, the price increases by over 33%?? What gives?
The speculators control the market. They are allowed to ignore supply/demand and charge whatever they want.
Until we get them out of the market, it doesn't matter how much we drill.
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