☰ Menu
Blog of Mass Destruction

Gasoline Prices & Markets

By The Reverend Published: December 9, 2010

Perhaps you've noticed the ever increasing price of gasoline the last few months. In my experience retailers have raised their prices, sometimes by 20-23 cents in one day, only to lower prices by a penny or two every day after......creating the perception that prices were coming down. Then, another spike of 15-25 cents followed and the whole cycle repeated itself.

Maybe Americans are using a whole bunch more gasoline than they did last year at this time......causing the supply and demand gods to raise prices because we're using more of the stuff....maybe....

November 23, 2010...Reuters...

U.S. retail gasoline demand fell 0.9 percent last week, but showed its first year-over-year gain after five consecutive weeks of declines, MasterCard Advisors' SpendingPulse report showed on Tuesday.

The average gasoline demand fell 83,000 barrels a day (bpd) to 9.119 million bpd in the week to Nov. 19.

Demand was 0.5 percent higher than levels seen the same week last year. Over the latest four weeks, U.S. gasoline consumption fell 1.0 percent on a year-on-year basis.

Those numbers reflect what we, quaintly, tell ourselves is the "market" for gasoline. Consumers decide how much gasoline they choose to purchase and the laws of supply and demand kick in resulting in lower or higher pricing. Like I said....quaint.

Gasoline prices are not set by a "market" of American consumers of gasoline. Don't be silly. We have gambler representatives who handle that job for us.....

In trading early Monday morning, crude prices reached a two-year high at $87.49 per barrel.

Crude oil price hit a record high the week of July 11, 2008, at $145.08 per barrel. Only a few months later, the week of January 16, 2009, they bottomed out again at $36.51 and have been on a general rise since then.

(Terry) Flemming (Executive Director of the Ohio Petroleum Council) says the current crude prices are being driven by Wall Street speculators who have a more positive view of the economic recovery after the Republican domination of last week's mid-term elections.

"It's based on what they think, that business is going to respond to a Republican majority in the House," he says. "If the economy doesn't rebound as quickly as people anticipate, the costs will go down again."

Did you catch that? Oil prices have been gambled upward by the skimmers on Wall Street because.....Republicans won the midterms. There's your supply and demand......even though it doesn't, you know, look like it at first.

The real "market" for gasoline is made up of the mouse clicking commodities gamblers on Wall Street.....the same guys who brought us $4 per gallon gasoline when the Oilmen Cowpokes were in the White House. The mouse-clicker "market" doesn't bother themselves with such outdated notions as supply and demand. They deal in psychology.

Psychology like this....Republicans took the House back in the midterms....even though the presidency and the Senate remained in Democratic hands....and that means that the national economy is going to take off and then we'll all use more gasoline and then...and then. Now if you're not as hopeful that a Boner-led House will automatically jumpstart our broken economy...then you simply don't have the right stuff to be a "market" expert.

Republicans have told Americans that their number one priority, come January, is to destroy Obama's presidency. But to the experts in the "real market", that translates into 'the economy is gonna' boom.'

Like I said, f*cking experts.

The real "market" in gasoline does not consist of consumers who pump gasoline into their tanks. The real "market" is made up of greed-fueled skimmers who click their mousies all day determining gasoline prices for us in advance while dreaming of the reappearance of Gingrichian apparitions while simultaneously touching the Ouija Board indicator.

Don't call them greedy, conniving, reckless, unhinged mustn't.

Call them....The Professionals who make up the "market."



About This Blog

Prev Next