With gas prices increasing and prognosticators anticipating many more increases, it’s time A Frank Angle about the situation. Here are a dozen points everyone should know.
1) Presidents do not sit in the Oval Office thinking of ways to increase gas prices.
2) Politicians saying they can control gas prices is verbal flatulence.
3) The oil drilled in the United States enters the global commodity market – thus not for the United States. In other words, the Keystone Pipeline and Drill Baby Drill do not lower prices at the pumps.
4) The world commodity market determines the price of oil
5) Speculation in both directions is how the commodities market works – which is one reason why it is also called the Futures Market.
6) The supply and demand for oil influences the commodity (oil) market. For those who don’t know, usage Asia and the emerging markets is growing.
7) World situations (as Iran, Syria, Libya, etc) affect the commodity market because commodity brokers do not like uncertainty.)
8] The number of refineries operating and the operating margin affects prices.
9) Prices differ state to state because of different amounts of state taxes.
10) The amount a person spends depends for gas on three factors: the price per gallon, the vehicle’s miles per gallon, and the miles driven. Which one is out of the control of the consumer?
11) Politicians saying they can control gas prices is verbal flatulence.
12) Presidents do not sit in the Oval Office thinking of ways to increase gas prices.