Lame: Gas Prices & Denial

Yeah, I know, I'm stating the obvious here. Hurricane Ike was tragic in all types of terrible ways. Here in the Midwest we got pounded with non-Ike rain and then Ike took a soaking stroll right through the region over the weekend. Plenty of flooding to go around, to be sure.

The hike in gas prices were to be expected, as they always are when refineries in the Gulf are shut down or damaged by weather. Yet, it's a little extra frustrating when for the first time in 6 months, oil prices dropped below $100 per barrel. It closed at $95.71. I paid $4.16 for a gallon of gas today. That is not right. I should contact the Attorney General and file a price gouging complaint, cause that's horse manure.

Oh, and Treasury Secretary Henry Paulson says that the economy is sound. And that was after the collapse of a variety of financial firms. Wall Street had it's worst daily loss in seven years, so is Paulson serious? Economists - talk to me.


Brad said...

there's only a long-term correlation between crude prices and at-the-pump gas prices. First is the delay in wholesale prices post-refining. If crude supplies go up, but the largest refineries (like those in Texas) are closed, no new, cheap gasoline is being produced. Besides, various grades of crude are commoditized, while gasoline is only marginally so. Because of this disparity, speculation drives the market. "oil" companies correctly suspect that both crude prices will rise and supply will curb in the coming weeks.

Eva G. said...

Hmmm, sounds like I've got no price-gouging case. Dang.

I still don't think it's right to call our economy "sound" though.