Current oil prices

Current oil prices are always a hot topic. Many people believe that the price of crude oil on the market should be a good indicator of how much gasoline should cost. Unfortunately, this is no longer a good indicator of how much gasoline costs at the local gas station. In this economy, supply and demand for gasoline is the true indicator of how much gas costs. It might have been that in the past one could look at crude oil prices and estimate the costs of gasoline, but not anymore. All the crude oil price does now is determine a sort of "base price" for gasoline costs.

Supply of the refined product seems to be a strong indicator of current oil prices as well. Refineries outages can slow the flow of gasoline out into the market place, and this means more profit for the refineries. From the profit perspective, there is money to be made in producing less than what is needed.

Another indicator of oil prices is the average American's gasoline consumption. When prices rise over $3.00, most Americans still continue to consume gasoline with no more than a simple boo hoo. As long as we continue to fill up our big SUVs and take out our boats, the oil industry will be able to ensure that gas stays expensive.

The oil companies will deny having anything to do with the price of oil, but when they report record earning quarters admist all the "troules" caused by wars, and OPEC, and those other excuses, what can we be expected to believe? Did they really have such a rough time? I tend to think that the American public is a little too selfish and nieve to stop the gas prices from rising any more. We can speculate and calculate but the current oil prices do very little anymore in determining the price of gasoline. For a good indicator, look at the selfish, consumption minded Americans all around us.