On Monday I believe Oil traded at $128.00 a barrel. Today at around $122.00 a barrel. Gas prices here in Alabama have risen $.08 a gallon in the same time frame? I never claimed to be the sharpest tool in the shed; so, someone with more intelligence than I of this issue please help. Is it summer demand, less oil allowed to market, higher demand around the world (China and India), other, all the above, or no friggin use in trying to figure it out without blowing a gasket? :'(This crap is really beginning to piss me off breathe slowly...let the friggin chi flow...breathe....breathe
There is a lag between oil per barrel price & refinery processing inventories. Oil is not processed instantly, & prices do not go up/down until inventories are re-priced.All of the above - summer higher demand, OPEC & others cutting production, other countries (China/India/Russia, etc.), & lateley SPECULATORS have driven the price up.
And I listen to fruitcakes in Congress that say drilling more so we can process more is not the answer. Well duh, but it would create more supply, which inevitably affects pricing.
On a brighter note, South Dakota approved a new refinery. First new one is over 30 years. And guess who is suing & opposing it? SOS, but maybe this time it will get built.
While I am ranting, if we had explored/drilled refined 10 years ago, it would not be a "10 year wait" - the favorite mantra of the current crop of anti-capitalists who oppose ALL of the above, ALL the time. Mainly because of their Global Warming Religion & Marxism.