It's nothing diabolical or confusing -- it's simple supply and demand.
What's more concerning to me is the fact that current pricing on unleaded is actually BELOW PRODUCTION cost given the current price of crude. IOW, what we are paying for a gallon of Ethyl does not actually cover the cost of producing that gallon.
There's a lot of odd stuff driving this, and I hope it doesn't feed the economic woes we're seeing. If OPEC were in a mood, they could really screw with us right now.
Oh, not suggesting anything diabolical, just that the volatility of gas prices is historic right now. And it's undoubtedly going to swing back in the wrong direction.
It's nothing diabolical or confusing -- it's simple supply and demand.
ReplyDeleteWhat's more concerning to me is the fact that current pricing on unleaded is actually BELOW PRODUCTION cost given the current price of crude. IOW, what we are paying for a gallon of Ethyl does not actually cover the cost of producing that gallon.
There's a lot of odd stuff driving this, and I hope it doesn't feed the economic woes we're seeing. If OPEC were in a mood, they could really screw with us right now.
Oh, not suggesting anything diabolical, just that the volatility of gas prices is historic right now. And it's undoubtedly going to swing back in the wrong direction.
ReplyDelete