World Oil vs Gas Prices
Ok, I've ranted about this before, but just thought I'd bring it up again:
In the past week, gas prices at the pumps in Hamilton are up by about 8%-10%, while world oil realistically is only up a marginal 4%, and commodity gasoline has been steady for the past few days. The weather has been unseasonably warm, which is bringing down demands on fuel oils and natural gas, which is why they're down from this time last week.
So, why is gasoline up so much? Market analysts will argue that it is the result of the OPEC production cut to bring up the price of crude since there will be higher demand for less oil. However, with the draw down in demand for fuel oil, more non-OPEC markets coming online, and as commodity gasoline prices remaining steady, this argument just doesn't hold much weight for me.
Coincidence that the Christmas & New Year's travel season is less then a week away? I think not.
In the past week, gas prices at the pumps in Hamilton are up by about 8%-10%, while world oil realistically is only up a marginal 4%, and commodity gasoline has been steady for the past few days. The weather has been unseasonably warm, which is bringing down demands on fuel oils and natural gas, which is why they're down from this time last week.
So, why is gasoline up so much? Market analysts will argue that it is the result of the OPEC production cut to bring up the price of crude since there will be higher demand for less oil. However, with the draw down in demand for fuel oil, more non-OPEC markets coming online, and as commodity gasoline prices remaining steady, this argument just doesn't hold much weight for me.
Coincidence that the Christmas & New Year's travel season is less then a week away? I think not.
posted by peccles at 6:55 AM
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