Remember when Bush sent alot of oil to reserves? Well, in that process, oil companies also stocked up on oil. Also, gas has a shelf live. If alot is refined but doesn't go to market, then prices drop for gas...they need to get rid of it (it can't sit in the tank for too long). Another factor is that China is also acquiring alot of oil. We are not the only country that jacks up the price of oil.
Thanks for explaining this. That makes sense that the oil companies also increased reserves and need to sell the refined product. I remember reading that China has secured oil contracts with OPEC in recent months that have not been favorable to the U.S. Is that affecting why prices at the pump haven't increased though? I don't understand that part of the equation.
High oil prices will eventually have the very effect that al Qaeda is trying to accomplish - wreck our economy. For every extra dollar we spend on energy, that's one less dollar spent fueling our economic recovery.
That's interesting. My broker notified me that China is also acquiring a lot of gold. This should help to drive up the value of existing gold supplies and also the numismatic coins like I own.