I don't really see the supply and demand connection here -- especially as WTI Crude was trading at $US101.76 as of 7:38 am this morning:
"Drivers in the Greater Toronto Area will woke up to the highest gas prices ever on Tuesday.
Gas guru Dan McTeague correctly predicted Monday that gas will jump to more than $1.39 a litre — a 6.5-cent hike — overnight.
“You have never paid these kinds of prices, ever,” McTeague said. “This is unprecedented.”
The outgoing Liberal MP and founder of tomorrowsgaspricetoday.com said the skyrocketing price far too high based on the current market conditions.
“The price that we see today is totally out of sync with supply and demand,” McTeague said. “(The price) shouldn’t be anywhere near this.”"
http://www.torontosun.com/2011/05/09/gas-prices-rise-65-cents-overnight
4 comments:
Of course its supply and demand:
The oil companies demand ever higher profits, and we supply them with our cash, no questions asked!
Actually it is government that profits the most from higher oil prices.
Provincially there was a 10c hit from the HST in one shot alone.
Let's hope those who pay the most for gas - people in the 905 area who commute and who also brought the Cons to a majority - realize that NOTHING will happen to gas prices because the oil companies are deep in Steve's pockets.
Well if the basis is WTI, then there's a pretty clear rise, from 78 cents in October 2010 to 110 cents today. So the gas pump price is paralleling WTI price increases (with the usual grabbing for windfall profits when the price dips a bit on the way up). http://www.oilnergy.com/1opost.htm
Whether WTI itself is the subject purely of supply and demand, as the faithful proclaim, or whether the price is also influenced by RealPolitik, as the cynical proclaim, is a matter for more investigation. It is a matter of both, of course - for example, recent moves by the Saudis to curb production (prompting the famous and irrational Trump f-u Sheik response http://www.realnewsreporter.com/?p=3307 )
So, in other words, it's business as usual, and oh yeah, gas and oil prices are going to trend upward forever, more or less, and we all have to get used to that, because there's no more oil to be found (which is just as well, because we've been using it to wreck the planet).
Post a Comment