From what I can find the US imports 3% of it's oil from Libya. Yet everything I hear says the price of crude is going up because of the turmoil in Libya.
Diesel just hit $4.09 here. Hmmm, diesel, the one that costs LESS to produce than gasoline, yet it's higher.
I have a degree in economics so don't try to pull the supply/demand argument. It's quite simply pricing because the market supports it. Fact is, we will forego almost anything to pay for fuel. Really, who needs to eat?
As a rule, I'm very pro-business and think less government is a good thing. I am bothered though when I see the oil companies once again raking in record profits (not income, PROFITS) and the price just keeps going up and up.
Now to complicate matters more, keep in mind that other countries are growing at record rates and so is their fuel consumption. India and China come to mind first. Now we can start talking supply/demand. As soon as their economies support it they will become slaves to the fuel and we'll not only be competing against ourselves but also against them for available supply.
Short version: we'll never see fuel costs below $3/gallon again. After it hits $5/gallon and we complain enough they will reduce it to $4/gallon and we'll all think we got a good deal. You'll see this every year for foreseeable future. Raise the price and cause pain then reduce price until acceptance. Repeat.
<rant over>
