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Gas prices up for 10th straight day

The national average price for a gallon of gasoline rose for the 10th straight day on Monday to $3.842. That is now only about 6.6% below the record high of $4.114 from July 2008.

The average price rose by four-tenths of a penny, according to the survey of gas stations conducted for the motorist group AAA. Gas prices are now up more than 17% this year.


That means Gas Prises are rising 6.8% per month, 81.6% annually.

Looks like extremely high inflation to me.

$4.58 per gallon by June 1st 2012
$5.18 per gallon by August 1st 2012
$6.35 per gallon by Election day 2012

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Our local news -

reported on this last night. The news referred to a Goldman Sach study that said the speculation (derivative market) had led to a 56 cents per gallon increase in gasoline. I think it was then mentioned that Goldman Sachs are the largests in this type of trades. So let me get this straight - we are all paying 56 cents per gallon more for gas as Goldman Sachs is the biggest profiteer and they fund the Romney campaign and the general public does not get this?

So...if it goes down for a

So...if it goes down for a few days, would you also be so fucking stupid as to extrapolate that decrease down at hte same rate for hte next 9 months, and say "So, it looks like by Election Day it will be about $2.05"

if Gas is 6.35 by election

if Gas is 6.35 by election day, Obombya won't have a chance.

Speculation and inflation. Smoke and mirrors.

As long as the war drums continue to beat, as they are now, we're going to see speculative fraud. It's not real. It's not a supply and demand world today.

Speculation in futures is believed to be responsible for adding up to 58 cents a gallon or more to the price of gasoline and diesel. Even the head of the world’s largest oil company Exxon Mobile has said that speculators increase the cost of oil with no benefit.

Speculators add no value to the product, they just profit by speculation on future prices. They buy oil futures running up the price of crude oil and often use geo-political events as the excuse. The CFTC was created to stop this practice and aid consumers, but critics say it is too cozy with commodity speculators and has been slow to act. The proof is in the price.

Five powerful industry groups have weighed in on the fight against rising gas and diesel prices. They are targeting commodity speculators who they believe are responsible in part for rising fuel prices.

The group wrote a letter to Gary Gensler, Chairman of the Commodity Futures Trading Commission requesting that the Energy and Environmental Markets Advisory Committee (EEMAC) hold a meeting to discuss how speculation in oil futures might be contributing to the recent spike in gas and diesel prices. According to the letter, that Committee has not met since September 16, 2009 despite two cycles of high fuel prices.

The letter was signed by trade groups representing airlines, trucking, heating fuel companies, consumers, and petroleum marketers. The latter is the trade association for gas station owners and distributors not oil companies. The spike in fuel prices has hurt these industries, and their customers.

It is not known if Gensler will comply with the request by the industry leaders. Every driver should be watching to see if he does.


"I'm as mad as hell, and I'm not going to take this any more!"
- Howard Beale

Is there any evidence that

Is there any evidence that speculators are engaging in fraud? Speculators are generally the reason we don't see drastic price changes in short periods of time. They're one of the free market forces that regulate pricing. Generally speaking, if the price of oil production doubled overnight, the price increase at the pump would be spread out over 6 to 8 months allowing consumers to adjust their budgets without hardship. Without speculators, the price at the pump would double overnight, leaving many consumers hitchhiking or cycling to work. Likewise, if the price of production were halved overnight, the savings at the pump would be spread out over 6 to 8 months sparing the producers from budgetary shortfalls. Without speculators, prices on commodities would jump around and uncertainty would rule the land. Two or three years ago the Obama administration tried to blame speculators for the price increase, but, to my knowledge, they never produced any evidence. Scapegoating free market forces is a common theme with this administration. Sanctions against any oil producing nation will contribute to price increases, and it's the job of speculators to be ahead of the curve. The sanctions against Iran will increase the price of oil, no doubt about it, and speculators are just reflecting that reality. I don't see how that can be considered fraud.