Oil falls from 147 to 111, a 24% decrease. Meanwhile at the same time, gas prices fall from $4.11 to $3.69, a 10.2% decrease. Should be obvious.
Uh oh, you are insinuating oil companies, suppliers and retailers are gouging and manipulating price....get ready to be flamed by the supply and demand Freepers who believe that could and will never happen. Shame on you for thinking that could happen.
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Not going to flame you, but we are going to correct you. I hate to point this simple fact out, but oil is not gasoline. The logic applied by the genteleman who cited the drop in oil relative to gas is simply faulty. It is the same faulty logic that someone would make by claiming that a 50% drop in aluminum prices *must* cause a 50% drop in automobiles. It simply ignores the cost of every other input that goes into the final product.
Give me a break. Everyone here has seen gas prices shoot up 20-30 cents INSTANTLY when oil jumps $10/barrel. But when it falls just as quickly, gas prices seem to stay there.
Defend this if you will, but there is something wrong.
I agree with your comments.
In reading the comments of other FReepers on this subject it looks like we need to devote an entire forum to a discussion of crude oil supply and demand.
The forum would include topics like:
Where is crude oil produced in the world?
Where is crude oil consumed in the world?
Who are the top exporters of crude oil in the world?
Who are the top importers of crude oil in the world?
How does manipulation of the money supply affect the price of raw materials?
How does hedging by financial institutions of their corporate stock portfolio impact the price of raw materials?
This would a starting point.