Rod Kaufman said:
It's going up in a hurry, pretty much in line with an anticipated take over by the GOP in congress.
Why and how?
First, the intrinsic rise in the cost of gas is due to the rise in the cost of a barrel of crude oil. Most people understand that fact. But why the sudden increase? Supply and demand? Nope, the world, overall, is awash in oil. Our refineries are operating normally without any unanticipated down time. Our strategic oil reserves are at or near capacity, although they'll probably always add more. There's no supply and demand problem and if you want to argue it, I've got more than enough to dump on you.
So why the price spikes?
Same exact reason as the last time: SPECULATION. So why the speculation now?
First, the boys are back in town. The Republican boys, to be exact. With a change in venue in the house, there's less likelihood of the CEOs of the major oil companies to be hauled out in front of a committee in congress.
Second, who gets the blame when gas prices go up? The president, by far. I can see some Republicans in congress hoping it goes up even faster than it already is.
Third, Obama, in a weakened political state, won't be able to initiate a watchdog to guard against speculation as he had originally planned to do. The Republicans will never support it.
Fourth, companies will seize upon the new "crisis" to drill more than ever before with the Republicans on the sidelines chanting, "drill baby drill!" again, claiming they were right all along!
When it happens, don't forget to book mark this post...
And we'll see reduction in the cost of crack in DC due to lower demand with fewer Democrats in town. Rod, please.
Mike