Maybe, It's Not Supply and Demand...

[two-timer (2xR)]

This article shoots a large hole in the "supply and demand" argument for the recent fuel price increases. Basically, the demand has slowed, the supply is plentiful, yet petroleum users are still getting reamed.

As written in Transport Topics on July 3rd, 2008:

Quote:

Diesel, Gasoline Demand Falling, NATSO Says Less Holiday Traffic Forecast for July 4 Holiday High fuel prices are dampening demand for diesel and gasoline, and more Americans will stay home this Fourth of July holiday than last year, a truck stop trade group said Thursday. Fuel retailers have seen demand for fuel decline, according to NATSO, Alexandria, Va., which represents truck stops and travel plazas. Gasoline sold in May fell by about 3% in May from a year earlier, while diesel fell by about 6%, NATSO said. Declines of demand for fuel greater than 2.5% are rare, and even more so in a time that is considered to be peak driving season, it said. Softer demand and higher prices could give support to unregulated market speculation being a significant driver in higher fuel prices, the group said in a statement. “In the past, when we’ve seen skyrocketing fuel prices like this, it is because of some crisis that squeezes supply,” said Lisa Mullings, NATSO’s chief executive officer. “We’ve seen no long lines at the pump; in fact, demand has fallen and supply is adequate, so it is clear that there is another factor driving up prices,” she said in a statement. By Transport Topics

If the supply and demand theory was working here, the prices should be plummeting.

[rebel]

The Saudi Oil Minister said when asked if they would boost production,"Show me the buyers, where are they?"

If you can't count on the law of supply and demand to work in a free market, then what's going on?

Follow the money

[Bullwinkle]

The prices are all about ripping people off.

Look at this week. After a slight drop in prices, they suddenly shoot back up just in time for a holiday weekend. That is gouging in its truest form.