Do you think that oil companies are artificially inflating gas prices because they want Romney?
Oil companies want Romney to win the election because they want to be able to drill in more locations and have fewer ruls to follow. Suddenly gas prices are at record highs during a time of year when prices normally drop here in California. Do you think there is a connection?
I think oil (and gas) prices are high because they are commodities, commodities that are priced in dollars. The action of the Fed to keep interest rates low has weakened the value of the dollar. Did the price of oil go up or the value of the dollar to pay for it go down?
Also, the requirements for ethanol in gas have hurt the price. With the drought in the Midwest, the price of corn has gone up. With so much as 40% of the corn going to make ethanol for gas, the price of gas also has to go up.
In CA, I believe there are some refinery and pipeline issues affecting supply have contributed to the increase in the price of gas in CA.
This is exactly what candidate Obama said was "necessary" - US gas prices as high as those in Europe and other parts of the world. Some of his advisers say $10 a gallon isn't too much. Why would oil companies care whether Romney or Obama wins? Either way they make a percentage profit on oil. Obama has stopped the Keystone Pipeline and shut down offshore drilling while subsidizing Brazilian oil companies and turning a blind eye on the flood of foreign oil companies drilling offshore where American companies are forbidden to drill. Why? To raise US oil prices, force Americans to drive less or use public transit. It's what they plan to do with electricity prices too - raise prices to force a reduction in consumption.
If they lowered them, then I'd suspect it was a gimmick to help Obama win, but the price increase itself is a reaction to reduced supplies. Less crude, less gas, higher prices. That's how it works. It's actualy NOT in the oil companies' interest to keep prices high. Sustained high prices WILL reduce long term consumption, shrinking the market for oil and putting them out of business to some extent. Low prices keep markets busy and secures long term growth in the market. Chronic high prices will send customers elsewhere, so price-gouging is not in oil companies' interest.
If you want socialism, so goes the theory as articulated by the president's progressive advisers, you have to collapse our capitalist economy under the weight of entitlements and regulation first. Then, the government will have the excuse it needs to take over completely and institute "progressive" reforms. So far, they're just moving in the direction they intended with Obamacare and the soaring fuel prices. It's just that American business is harder to kill than they expected it would be. - Tom
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