Oil Prices Continue to Spike Despite Massive Surplus – Outpacing Economic Recovery
Remember the most inconvenient double-hockeystick graph? Get a load of this.
Source: Yahoo Finance/AP
Oil prices have been soaring for months despite a massive surplus of petroleum and natural gas. A large amount of speculative money has flowed into the markets, according to government reports, potentially taking advantage of a weak U.S. currency.
Surging energy prices appear to be outpacing an economic recovery for now, and there are concerns that consumers may pull back spending further, especially with retail gasoline nearing the $3 mark.
Pardon me. “Concerns” that consumers may pull back? Let’s hope!
There is NO LEGITIMATE REASON for oil to be this high right now. We are sitting on the largest stockpiles of oil in history. Ships are still doing circles at sea because there’s no storage left on shore for their oil. Demand is still depressed in general. Why is it being sold at premium prices?
And why is this not news any longer? Are we so shell shocked and distracted by the trillions that we’ve spent bailing everyone out to not notice the same mechanisms that helped trigger the largest financial disaster in history are back at work steadily inflating the next oil bubble?
OPEC say $85-$90 by the end of the year…we’ll be at $85 in two months or less.
“That everyday, in-your-face experience of seeing higher gas prices at the pump; that has quite an impact on people’s psyche,” said Tom Kloza, publisher and chief oil analyst at Oil Price Information Service.
“There’s this feeling of ‘here we go again’ with what happened last year,” Kloza said. “It hurts discretional spending. It leaves people to think about not taking those summer vacations.”
I’m quite a bit more pissed than “Here we go again…”
I built FuelClinic to help people realize how much they spent on fuel, and find ways to improve their efficiency, as a “band aid” to high gas prices. I’m beginning to thinking we may need less of a “band aid” and more of a “war footing”.
We need to get serious about our oil problems, introduce as much direct competition as we can – as quickly as we can.
In the mean time we need to buy as little of it as possible, and let it circle in those expensive oil tankers as long as possible.
Here are some more resources, just in case you don’t like the first two for some reason:
You can cut your expenses and improve your mileage 10% to 25% (sometimes more) – depending on your driving habits.