Sunday, September 10, 2006

Is the Democrats Big Issue Gas Prices?

Democratic leaders bemoan the unacceptably high prices of gasoline and the market manipulation by Big Oil. They are TV claiming if they are elected they will get gas prices down. This is pandering to voters who feel the economy is doing poorly cause they have to pay more to fill up the tank while the economy is actually doing great.

As an environmentalist, I have favorite higher gasoline prices for over twenty years. The Democratic leaders claim to be environmentalists, but unfortunately do not believe in the law of supply and demand. [Want to have some fun, ask that question to a liberal: “do you believe in the law of supply and demand?” and the typical response is akin to a deer staring into headlights.]

So does the law of supply and demand work? See Oil Slides Towards $66 article in MoneyNews, Saturday, Sept. 9, 2006. It includes:

■ “Oil fell five-month lows Friday [September 8, 2006] …U.S. crude slipped $1.07 to settle at $66.25 a barrel.” “Oil in New York has fallen from a record high of $78.40 reached in July.”
■ "There's a lot of distillate and gasoline about, and crude supplies are ample."
■ “Prudhoe Bay may hit full capacity above 400,000 barrels per day (bpd) by end-October”
■ “U.S. inventory data showed fuel stocks in the world's top oil consumer were building up more quickly than analysts expected.”
■ “Gasoline inventories rose by 700,000 barrels to 206.9 million barrels, against analysts' forecasts for a decline.”


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