In the recent past, the oil companies have used any excuse to raise prices at the pump overnight. Anything and everything from a hurricane in the Gulf, to 'unrest' in the Mid East. These non-existent disasters caused prices to raise immediately, even though gas at the pump has been priced at least six months before it gets to the station.
Never mind that con job, I'm all for any business, or person, making as much money as they can. Just don't piss on my shoes and tell me it's raining. Don't pretend the oil companies don't get together, collude, and price fix. That is exactly what they're doing in the wake of the oil rig explosion.
The strange thing is that they are colluding to keep the gas prices from going up, not down.
Yes, they have a public relations nightmare staining the Gulf, so they have conspired to not piss off the public any more than they already have. They realize that they screwed up and price gouging right now could possibly cost them billions from future off-shore drilling.
There has been an over supply of oil for several months now, yet the prices have not fallen as the old supply and demand tenet says they should. This, supposedly, is due to investors buying up oil futures instead of real estate. Well, Big Oil, why are pump prices finally going down at the same time as the largest oil disaster in history?
The drop in fuel prices at the pump during what is now being called the worst oil industry disaster in US history is purely public relations. The other side of the story is the Obama administration's lack of movement on stopping the oil flow at the well site in the gulf. It's now coming out that BP has been a huge contributor to Obama, consequently he toned down any response. Public outcry, even among his own constituents, has led to yet another drop in Obama's popularity (42% now).
ReplyDeleteOur President is losing it on an almost daily basis as he and his cronies botch everything they touch. THANK GOODNESS!
Agreed, Han.
ReplyDeleteMakes me fear it's the calm before the storm.
It reminds of a Chris Rock skit from "Kill the Messenger" where he asks why we invaded a country with oil only to have oil prices go UP?
He goes on to say that if he invaded a Kentucky Fried Chicken, wings would be cheap at the Rock household.
Might want to buy our barrels now, brother.