Why are gas prices rising? Duh.

[Madison320]

Isn't it amazing how completely clueless most people are about the reason behind rising gas prices? I've been reading article after article with no mention of the real reason for rising gas prices, which is of course inflation. You would think the fact that almost EVERTHING is going up would be the first clue.

One article did mention inflation but they got it backwards, The heading was "Rising Gas Prices Drive Inflation!". Argghhhhh.

[Jordan]

Or, you know, oil pipelines were reversed to hedge the difference between brent at WTI prices. http://online.wsj.com/article/SB1000...864856270.html

It's convenient to blame everything on inflation, so long as you find no consequence in looking like a fool.

[Cabal]

Or, you know, oil pipelines were reversed to hedge the difference between brent at WTI prices. http://online.wsj.com/article/SB1000...864856270.html

It's convenient to blame everything on inflation, so long as you find no consequence in looking like a fool.

That doesn't change the fact that oil prices have been on the rise for a long time now. As RP himself has pointed out, oil prices in gold have remained relatively stagnant where as oil prices in dollars have continued rising.

To disregard the role inflation has played is just as foolish as attributing everything to inflation.

[HOLLYWOOD]

Price is tagged to North Sea BRENT Crude not WTI.

[cubical]

Or, you know, oil pipelines were reversed to hedge the difference between brent at WTI prices. http://online.wsj.com/article/SB1000...864856270.html

It's convenient to blame everything on inflation, so long as you find no consequence in looking like a fool.

This is nothing special. Gasoline storage facilities are full.

Gasoline demand is at the lowest levels in a long while, yet gas prices are higher than ever before. That is inflation.

[rockerrockstar]

The Feds idea of keeping deflation in check by doing all these quanitative easings (bailouts) is really going to screw us all over sooner or later. Gas should be super cheap right now since unemployment is so high.

I think the possible Iran war is not helping matters. The unrest in certain countries probably are not helping at all.

[Madison320]

Or, you know, oil pipelines were reversed to hedge the difference between brent at WTI prices. http://online.wsj.com/article/SB1000...864856270.html

It's convenient to blame everything on inflation, so long as you find no consequence in looking like a fool.

Short term factors may cause the price of oil to fluctuate but the reason it's fluctuating around $100 a barrel and not say $50 a barrel is due to inflation.

How do you explain the fact that almost everything is going up in price?

[Liberty74]

Several reasons:

1. Oil is traded in dollars world wide. The strength of the dollar has declined (thank you FED), hence the reverse relationship to oil means it goes up.
2. Government Regulations: Not allowing companies to drill (thank you environmental Nazis), means less supply on the market to meet demand, hence higher price.
3. Gas refineries: We need more plants to convert the oil to gasoline. They are not the same.
4. Taxation on gas (the hidden tax per gallon you don't see on your receipt).

If we got government out of the way, we could get the cost of gas somewhere between $1 and $1.50 easing inflation across the board on items like food and clothing among other goods. Drilling for oil would add 1 to 2 million immediate high paying jobs long term. The boost to the economy would be felt by everyone. But as long as we have government controlling the supply via our laws/rules forcing us to buy from Canada and OPEC boosting their economies, we won't get any serious growth. And we all know why we have these extreme environment rules - so the Left's buddies in the green industry like Solandra can rip the tax payers off in an attempt to sell overpriced energy to the people. It's all freaking rigged against the people and in favor of rapist Al Gore's cap and trade schemes coming in the future where big Leftists all have their hands in already.

[No Free Beer]

I got into a debate with a guy who said: Obama is doing such a great job. Our gas prices are still lower than Europe's gas prices.

So, I go: What does that have to do with Obama? Moreover, just because some other country or continent is worse off, doesn't make what happens here justifiable. If another country has a totalitarian system, does that justify the US Congress from passing NDAA, whiling saying "well, it's better than what's going on over there..."

I didn't even feel like talking about how Europe has always had higher gas prices...

People are clueless.

[ILUVRP]

i have posted my thoughts about the price of crude on this and other forums many times , never one comment.

crude oil is the only commodity in the world that is controled mainly by a cartel (OPEC ) , big speculators help pump the prices , as it is a no lose commodity , we will never see crude prices below $90/ba if things remain as they are now.

the margin requirements on crude oil and the cracks ( gas/heating oil ) is 6% , meaning you can control $100,000 worth of crude oil with $6,000.

the real price of crude oil should be $50-$60/ba , which would mean $1.50/ga gas and diesel fuel / heating oil.

they will always trade crude as the elected officials are so much in big oil pockets,

there is only one answer ----raise the margin requirement from 6% to 75%---make all contracts for delivery only , meaning if you buy one or 1000 contracts you must take delivery .

you would see crude oil at $60/ba very fast.

remember what a commodity trader is : someone that doesn't have the items selling to someone that don't want the items and both sides wanting to make money.

for the free traders among us , where is the free trade when a controled commodity is traded on our exchanges.

where would the prices of- corn--wheat--soybeans--cattle--hogs be if our great farmers had a cartel ?????????