Tuesday, April 18, 2006

Gas Prices Set Records

Gas prices continue to climb higher; crude oil is getting near post-Katrina price levels, which is scary news considering that we haven't even started the Summer driving season. A couple of Money Magazine/CNN articles explores why these gas prices are going so high. One of the reasons mentioned is the threats coming from Iran and possible military/economic actions against the nation. I know this sounds like a crazy idea, but it is hard not to think that Iran is making threats to increase their profits. With each new threatening statement that they make, the price of oil shoots up. What is their cash cow? Oil. When oil goes up, their profits go up. Also, demand continues to increase (we love those big honking SUVs, don't we?) and supplies continue to decrease. Also, recent legislation from the government required the gas companies to change to a different gas additive, and Congress didn't bother to give the companies any type of grace period. This looks like a fun, expensive summer. I think that everyone involved is to blame for such horrible gas prices: Iran, OPEC, the government, oil companies, and the consumers. (stories here and here)

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