If there is really a shortage, why aren’t there any lines?
Because inventories are adequate to meet demand. In fact, this very fact belies the notion that this is a speculation-driven “bubble.”
When the Iranians cut us off in the late 70s price increases were driven to a considerable extent by hoarding. That’s not the case this time. The price spriral is strictly a function of supply and demand, the former being driven by India and China.
People are in for a shock when the increases of the past few days start showing up at the gas pump. This is why I’m leery of McWeird’s proposed gas tax “holiday.” It’s not going to have any political mileage when you consider that the federal tax on gas becomes rather inconsequential when the cost per gallon tops $5.
Fact is, most everyone I know will greatly curtail or cancel summer trips when that 5-dollar barrier is crossed, which seems inevitable given the upward pressure on the cost/bbl.
Well, maybe there is.
I was in Dublin TX on Saturday. I pass through on the way to Mom’s occasionally(mother’s day and such). Pull in the “regular” gas station, and the pumps are covered over. Price was 3.59. Oh brother, I think we have a gas shortage. But no, there is a new gas mega station “ALLSUP’S” just opened. $3.49 and everybody is there.
The overrated price on oil is a speculators dream come true.