That may play into it. I’ve wondered that myself.
However, what about all the foreign oil we no longer need? Is it cheaper oil than the domestic stuff? Would it not be comical if ending our dependence on foreign oil causes the price to increase because it reduces competition?
I’m sure that the reduced number of Refineries due to NIMBYism also impacts gasoline prices as well as the increasing number of boutique formulations required for gasoline at different places around the U.S. With California naturally leading those numbers BTW.
My experience with petroleum though leads me to believe that the “financial speculators” are a lot like lemmings and react with emotion to anything that “might” impact the market and their usual reaction is to raise prices on the spot market and future market. What one does the others will also do unthinkingly and so they eventually run off the cliff when the market does manage to correct their emotional over-reactions.
I can tell you one thing for sure though an economy built on consumerism WILL collapse once the needed number of consumers to maintain it no longer are consuming at the required volume. Are we there yet? No, but we are getting close I think. Not because there isn’t a demand but because the money isn’t there to satisfy that demand.
If this was a textbook/classroom exercise it would be interesting to discuss/analyze and argue over. But it is going to really be nasty to live it I fear.
I was also forwarded an oil industry investor e-mail (which I deleted and my numbers might be off a little) that said the DOD just purchased 3 ??million?? barrels of oil over the past couple of weeks.
Could presage an attack on Iran ...
But could also be a reason why prices are up.
Also, wasn’t there a refinery fire recently?