At 4:28 PM -0600 3/20/00, Charley & Peggy Robinson wrote:
> Have you ever wondered why an increase in the price of oil today
>results in an increase in the price of gasoline tomorrow?
>
> Have you ever wondered why a decrease in the price of oil today
>doesn't result in a decrease in the price of gasoline tomorrow?
>
> Could it be that the fix is in throughout the oil industry from well
>to pump?
>
> CR
While I will readily admit that economics is not my area of
expertise, I do recall several lessons of supply and demand from my
undergraduate years. Last summer the price of oil was extremely low.
With low cost goes increased demand. I drove my MG a whole lot more
on $1/ gallon gas than I did the year previous on $1.30/ gallon gas
the summer of '98. I will drive a bit less this year on $1.50/ gallon
than I did last year.
There is a second part to the picture. In the past few years,
several of the smaller wells in west Nebraska were capped because, at
the low prices of oil they could not be pumped economically. Less
supply and more demand equals an increase in price.
The market will work out the price. In the mean time carefully tune
your MG for the maximum economy.
--
Bob Shaw
Check out Shaw's Garage at http://www.mlcltd.com/shawsgarage/
My British Car is NOT leaky - it's merely marking its territory.
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