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Originally Posted by Dion
I think it's a scam when the increased prices are based on fears that rigs and refineries could damaged and down for quite awhile. If the fears don't pan out prices start to drop soon afterwards.
Why not wait until we see what damage there is before hiking prices.
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Because by then its already too late.
They're is a shortage of gas right now, which results in the increase in price.
Simple supply and demand economics.
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Institutional investors caused the rapid rise and subsequent steep fall in oil prices in 2008, according to an independent report released by U.S. lawmakers yesterday.
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That was before it began dropping. OPEC had to increase production during the summer, and right now there is extra oil on the market. That is the only reason prices aren't rising in step with the gas prices.
Shortage of gas, excess of oil. Results in a lower oil price, higher gas price.