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Re: O/T Gas and Diesel prices


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Posted by JK-NY on March 01, 2008 at 12:21:39 from (4.157.26.4):

In Reply to: O/T Gas and Diesel prices posted by Gary in TX on February 29, 2008 at 17:41:27:

As the price of fuels bgan to climb after the first of the year, consumption in USA and worldwide began to drop off, inventories of refined product began to climb, and OPEC's response was to announce production cuts to keep the price up. The commodity traders who actually influence the price of oil/gas took this announcement as reason enough to push the price of oil up over $100 a barrel. As far as the government stepping in, Maybe some folks arent old enough to remember the "energy crisis" of the 1970's. This was caused by the Nixon administrations idea to control inflation was to impose wage/price controls. When the market price of oil rose, our government's actions (which was supposed to help us by keeping prices down) caused the energy shortage , by keepng the price in the US below the market price, which made for short supplies of gas. I'm afraid the days of cheap fuel are over. The best thing to do is try as an individual to do whatever you can to rely less on petroleum fuels and increase effiency where you can. Thats why I heat my upstate NY home with wood . When fuel oil was .50 a gallon I was just getting excercise cutting/splitting wood , but now it pays pretty good. I agree its painful to fuel up vehicles/equipment but theres no good alternative yet. Maybe there will be more drilling for oil in North America in areas off limits presently , that could help us out if there were significant new oill fields brought in , but I'll bet the price wont ever get down to what it was a few years ago. I 'm not surprised this situation is hurting the economy , actually surprised it didnt slow things down sooner.


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