Old And Busted: Donald Trump Wins On First Ballot. New Hotness: A Scorched Earth Convention
There is no reason why the GOP should allow Donald Trump to have the nomination no matter how many delegates he shows up with.Read More »
As the graph below shows, the price of gas is languishing just above $4.00 per thousand cubic feet.
Huh? What’s that? You don’t think that’s the kind of “gas” he was talking about? That can’t possibly be. We all refer to gasoline as “gas” informally, but the use of the phrase “oil and gas” (as in “the oil and gas industry”, or in the name of the President’s recently-announced “Oil and Gas Price Fraud Working Group”) always connotes oil and natural gas. At least among knowledgeable people.
Obviously, the price of motor gasoline tracks the price of crude oil pretty closely. The crude oil price is set on the world market. Some contend that the price of oil is controlled by some nefarious group, usually either “Big Oil” or “speculators”.
No, the things that truly swing price are supply, demand and (perceived) risk.
Say, just as an example, that the government decided to curtail drilling in an important producing area like the Gulf of Mexico, and as a result total domestic production dropped by 300- to 550,000 barrels per day, compared to expectations. That might cause the crude oil price to go up. Just as an example.
What is this, like the 27th time Washington has looked into allegations of fraud or price fixing? What have they ever turned up?
Fraud? Physician, heal thyself.
Cross-posted at stevemaley.com.