Friday, January 16, 2009

Crude Oil at $35 Per Barrel Today But Where Is Cheap Gas?

My little crude oil widget tells us that the price of a barrel of crude is selling for $35 at the time of this writing. This represents a mere fraction of the prices we witnessed in 2008, when the going rate was $144 per barrel. These low prices persist even as OPEC has cut production output by 4 billion barrels daily.

Here is what I do not understand, "Why are prices at the pump still $2 per gallon or more?" Everyone knows that when the prices for crude go up, we see an INSTANTANEOUS rise at the pump, so why is the opposite not true? Why are gas prices still $2 a gallon now when they were $1.50 a couple months ago at the same crude prices?

I believe that oil companies are keeping the prices high intentionally to keep their profits up. They got so used to huge profits these past few years that they must now be going into withdrawal. Like a drug addiction, greed is overwhelmingly powerful and my thinking is that Big Oil needs more profits.

What are you paying at the pump today? It is still $1.99 in central Ohio but should be lower.

No comments: