Forum Discussion
TrueLarry
Sep 04, 2008Explorer
Spot pricing will, obviously, have an impact and will result in price fluctuations that are outside the norm - the home heating oil spike this summer, for example. There is no logical reason for oil to be almost $5 this summer and back down to less than $4 now. That is just because oil is the new gold for the speculators.
As the demand went down and the supplies eased up, speculators backed off and the price came back down. Of more signifigance is the long-term trend. That's what we need to be concerned about. We will never see $2 per gallon again. One point Fezziwig has repeatedly made that I agree with is that subsidies also skew numbers because prices are artifically impacted by political meddling. We cannot fixate on one form of energy and say that solves the problem. We must develop all of it including drilling for oil and expanding our refineries.
As the demand went down and the supplies eased up, speculators backed off and the price came back down. Of more signifigance is the long-term trend. That's what we need to be concerned about. We will never see $2 per gallon again. One point Fezziwig has repeatedly made that I agree with is that subsidies also skew numbers because prices are artifically impacted by political meddling. We cannot fixate on one form of energy and say that solves the problem. We must develop all of it including drilling for oil and expanding our refineries.
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