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September 24, 2005
Something Other Than Natural Market Forces?
Well now perhaps it will become apparent because what has been done cannot be hidden unless enabled by mass ignorance.
Leslie once said, "there is no such thing as market forces, it is all about human nature"
With the shut down of oil refineries the demand for crude oil, the price of a barrel of oil should decrease. Any one with high school economics would agree. If they cannot refine the oil there is no need for it. The demand for Oil should decrease when refinery capacities are diminished. Therefore the market price for crude should go down. Now this does not imply the price of the refined product should actually go down but crude should.
Yet this is not what happened, with the hurricanes etc. the price of crude should go way down. It went up. This tells us that natural cause and effect is not at play here. What is? What finite game is being played by the finite players? What is to be done by the infinite players to put an end to the game?
If the federal government is the one to be the watch dog for monopoly capitalism one must ask does the Oil monopoly have friends in the administration?
I hear the media say the “the price of crude is going up because of the threat of the hurricane on refineries” this is not logical, it should go down, so one must ask is the media ignorant or in collusion? Perhaps they simply benefit form the drama and help to create it.
As one person, we shall not name said, "If they are so ignorant they cannot see through this then they deserve it, and it proves we need to herd them along through life".
Many states Michigan, Illinois, Indiana, and Kentucky etc. charge around a 6% in taxes so when the price goes up so does their revenue.
The most recent report from the DOE breaks down what we paid for in a gallon of regular gasoline throughout the nation during August:
Taxes -- 18 percent
Distribution and Marketing -- 2 percent
Refining costs -- 24 percent
Crude oil costs -- 56 percent
In North Carolina, state and federal gas taxes amount to 45.75 cents for every gallon. The federal government charges 18.4 cents per gallon; the state charges 27.35 cents a gallon. A good chunk of the money goes toward transportation projects and maintenance.
The state's gas tax is close to average for the nation, which is 27.5 cents per gallon, said Sara Banaszak, a senior economist for the American Petroleum Institute, which represents the oil and natural gas industry. The North Carolina gas tax is the 17th highest in the United States, she said.
A portion of the state gas tax is readjusted every Jan. 1 and July 1. It is whichever is greater: 3.5 cents or 7 percent of the average wholesale price of motor fuel during the preceding six-month period. So expect the state gas tax to go up in January after prices that topped $3 a gallon after Hurricane Katrina.
So it would appear the states benefit from high prices at the pump as well.
Crude Prices Drop As Hurricane Weakens
NEW YORK -- Crude oil prices dropped sharply Friday, the second straight day of declines, as traders welcomed news that Hurricane Rita had weakened, suggesting that damage to refinery capacity in the Gulf could be less severe than originally feared.
Is there something wrong with this picture? Shouldn't they have increased?
Posted by Urgo at September 24, 2005 10:45 AM
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