GAS PRICES UP, UP AND AWAY - Speculators Have Their Way

(11/02/2009)

COMMENT: By Bob Weaver Right in the middle of America's worst economic collapse, speculators have decided to bypass the free market one more time. A gallon of gasoline, unleaded fuel, is headed toward $3 locally. According to Gasbuddy.com, the average price for a gallon has gone up 21 cents in the past month. The oil supply far exceeds the demand, which means gasoline prices should be dropping. They're not. Despite frivolous reasons given by the oil corporations, government experts, politicians and TVs talking heads, the reason for high gasoline prices is the same as last year - speculators. In America, where we say we "let the market find its' place" and money trickle down, many are offended by more government regulations, we find the world with a huge oil glut - crude inventories bulging. The cry for years is more deregulation. BusinessWeek reports that at 80 percent, U.S. refineries are operating at their lowest rates in two decades. Despite supply exceeding demand, oil prices are rising - up 152 percent since the $32 a barrel traded in January to $80.50 last week. With family budgets stretched beyond limits, rural residents who have to drive to work are being beat to death.

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