One explanation...
According to the experts at CBS's MoneyWatch, they think the rise has more to do with speculation in the markets than anything else. And it all has to do with Tensions in Iran.
http://wusa9.com/news/article/192594/373/Gas-Prices-On-The-Rise-How-High-And-Why
another
The average price of gas is up more than 10 percent since the start of the year, a point that was made repeatedly during Wednesdayâs Republican presidential debate. Predictably, the four GOP presidential candidates blamed President Obama for the steep increase.
Actually, the President doesnât have that kind of pricing power. The more likely reason behind higher prices, though certainly less compelling as a political argument, is the recent spate of refinery closures in the U.S. Over the last year, refineries have faced a classic margin squeeze. Prices for Brent crude have gone up, but demand for gasoline in the U.S. is at a 15-year low. That means refineries havenât been able to pass on the higher prices they are paying for oil to their customers.
http://www.businessweek.com/global/...-blame-shuttered-oil-refineries-02232012.html
In fact, oil prices are rising for three reasons â none of which has to do with offshore drilling or the XL pipeline.
The first, on the supply side, is Iranâs decision to cut in oil exports to Britain and France in retaliation for sanctions put in place by the EU and United States. Iranâs threat to this has been pushing up crude oil prices for weeks.
The second, on the demand side, is rising hopes for a global economic recovery â which would mean increased oil consumption. The American economy is showing faint signs of a recovery. Europeâs debt crisis appears to be easing. Greeceâs pending bailout deal is calming financial nerves on both sides of the Atlantic, and the Bank of England and European Central Bank are keeping rates low. At the same time, China has decided to boost its money supply to spur growth there.
Neither of these would have much effect were it not for the third reason â overwhelming bets of hedge funds and other money managers that oil prices will rise on the basis of the first two reasons.
Read more: http://articles.businessinsider.com..._oil-prices-crude- speculators#ixzz1nFhvQiGj
So while Nancy's explanation may be incomplete, it is accurate.
But I know, she's a dem so she can't be right.
It's so hard to think rationally when blinded by partisanship.
According to the experts at CBS's MoneyWatch, they think the rise has more to do with speculation in the markets than anything else. And it all has to do with Tensions in Iran.
http://wusa9.com/news/article/192594/373/Gas-Prices-On-The-Rise-How-High-And-Why
another
The average price of gas is up more than 10 percent since the start of the year, a point that was made repeatedly during Wednesdayâs Republican presidential debate. Predictably, the four GOP presidential candidates blamed President Obama for the steep increase.
Actually, the President doesnât have that kind of pricing power. The more likely reason behind higher prices, though certainly less compelling as a political argument, is the recent spate of refinery closures in the U.S. Over the last year, refineries have faced a classic margin squeeze. Prices for Brent crude have gone up, but demand for gasoline in the U.S. is at a 15-year low. That means refineries havenât been able to pass on the higher prices they are paying for oil to their customers.
http://www.businessweek.com/global/...-blame-shuttered-oil-refineries-02232012.html
In fact, oil prices are rising for three reasons â none of which has to do with offshore drilling or the XL pipeline.
The first, on the supply side, is Iranâs decision to cut in oil exports to Britain and France in retaliation for sanctions put in place by the EU and United States. Iranâs threat to this has been pushing up crude oil prices for weeks.
The second, on the demand side, is rising hopes for a global economic recovery â which would mean increased oil consumption. The American economy is showing faint signs of a recovery. Europeâs debt crisis appears to be easing. Greeceâs pending bailout deal is calming financial nerves on both sides of the Atlantic, and the Bank of England and European Central Bank are keeping rates low. At the same time, China has decided to boost its money supply to spur growth there.
Neither of these would have much effect were it not for the third reason â overwhelming bets of hedge funds and other money managers that oil prices will rise on the basis of the first two reasons.
Read more: http://articles.businessinsider.com..._oil-prices-crude- speculators#ixzz1nFhvQiGj
So while Nancy's explanation may be incomplete, it is accurate.
But I know, she's a dem so she can't be right.
It's so hard to think rationally when blinded by partisanship.
