Apr 10, 2008

Gas, Oil Prices Record New Highs, Demand Finally Responds

When will everyone demand change? It is now so high that demand finally fell from consumers, people are altering their consumption.

Make no mistake, the problem is easily corrected. No, it s not due to demand in China . Draw back U.S. military forces from the middle east, which war fears are directly responsible for driving the psychologically driven futures market, and oil and gas prices will immediately drop. WAR is the primary cause (along with the oil companies deliberate reduction in refining capacity to increase price and profits), as historically it always has been tied in particular to middle east conflicts, as we have shown in previous posts (see "gas prices" tag below).

Americans are paying in effect a WAR TAX through increased gas prices, which is inflating all consumer goods prices.

clipped from biz.yahoo.com
Gas, Oil Prices Hit New Records
Gas and Oil Prices Hit New Records After Government Reports Supplies Fell Last Week
NEW YORK (AP) -- The upward trend in energy prices showed no sign of abating Wednesday as gasoline set yet another record at the pump and crude oil topped $112 a barrel for the first time in the futures market.

The national average price of a gallon of regular unleaded gas rose 1.2 cents to a record $3.343 a gallon, according to a survey of gas stations by AAA and the Oil Price Information Service. With the peak summer driving season still to come and gas following crude higher, the fuel may well reach the retail price of $4 a gallon that the Energy Department has been forecasting.

But prices that are 55 cents higher than a year ago are hurting demand for gasoline, which fell last week by nearly 2 percent from year-earlier levels, the department's Energy Information Administration said in its weekly inventory report.