MEXICOWANDERER wrote:
Hey B.S.
It's been what? A week? Shame you cannot differentiate a week from a month. Costo Chula Vista CA. prices jumped fifty-one cents a gallon. But of course, that is beyond your vision. The issue was and is this: Saudi Arabia sooner or later is going to drag us kicking and screaming in the middle of all this. Meanwhile, the R.V.er who filled his gas tank is laughing his ass off. Let's hear more comments.
Four main things came together to cause there proce spike you mentioned price spike.
1. This is the traditional summer/winter formulation changeover which causes a temporary reduction in supply. This is an annual event that would have caused a price hike regardless of any other external turmoil.
2. Both Chevron and Marathon refineries in Los Angeles suffered unexpected maintenance breakdowns. Add this to the already regional reduction due to the Texas refinery issue and supply levels are low. Breakdowns occur all the time with temporary spike increases that has nothing to due with any external turmoil.
3. Saudi attack. The attack in Saudi Arabia actually doesn't have that big an impact on US oil imports and is more a factor in global oil prices.
4. Panic is the number one reason for price spikes. If people get all panicky over an event and make that event a big deal, investors and speculators will respond inkind and jack up prices just because consumers expect it to rise. We have seen it before where events cause a price spike but the second people didn't accept the hike, prices dropped. If people run around like Chicken-Little, I don't blame investors and speculators for ramming it to people with price hikes.
