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Coming and Going

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So, here in northern California the price of a gallon of unleaded gas ranges from $3.19 to $3.45 with a mean of $3.28. The mean price is up $0.12 from a month ago and $0.35 from one year ago.

The price in Sacramento jumped $0.05 per gallon from just last week.

Gasoline prices typically deflate during winter months when demand is relatively low. When the weather warms, price rises in step with increased seasonal demand. This doesn't bode well for 2011. (In June 2008 prices peaked at over $4.50/gal.)

Up until a few weeks ago crude oil prices were in the low $80s per barrel. Currently, the price is $91.

Rising crude has prompted speculators to jump into the oil market . That trend likely will continue, with major investment banks projecting a return to $100-a-barrel crude in 2011.

If that happens...gas prices will tag along for the ride.

Hmmm, speculators. Who might these speculators be and where might they have gotten the money with which to speculate? It's not like there has been a recent acceleration in the upward redistribution of wealth. It's not like there have been recent tax cuts favoring the wealthy. I mean the Democrats are in charge, right? They would let a thing like this happen, would they?

Would they?

Bueller?

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Comments

Submitted by lambert on

... believes that oil prices are manipulated, and we have the highest percentage of homes heated by oil in the country.

That's a lot of frustration for the EU's largest aircraft carrier or Canada's newest province. Kidding!

Submitted by Hugh on

Oil prices are manipulated. What is funny it is being done precisely by those investment banks that also happen to be predicting $100/bbl oil in 2011. The thing is $90 oil will put the economy into recession. $100 oil even more so. This is the kleptocrats' paradox: they can't stop looting long enough for the economy to produce new wealth. It is rather like the difference between milking a cow and bleeding it. You can milk it everyday but bleed it everyday and pretty soon you have a dead cow.