It is amazing, economic-law defying, illogical, too good to be true, but it is! The best part is that it is at a gasoline station near you right now! Yes, it’s time once again for BushCo. Oil to hold its semi-annual, pre-election day fire sale on gasoline. With demand steady if not rising slightly, and seemingly significant supply concerns on the West Coast, one could expect prices to be having a hard time holding steady. Not to worry, BushCo is one step ahead and prices, (in case you have been too distracted by the ABC/Disney flap to notice) prices have been in free fall!
More after the flip
Just a few weeks back, wholesale prices of gasoline according to Bloomberg topped around $2.29 a gallon. About the same time in Ann Arbor Michigan, Regular topped at about $3.16 a gallon. Today the numbers are $1.64 per gallon wholesale, $2.43 per gallon for Regular at the pump in Ann Arbor. That is some significant price reduction–about 23% at the pump if my limited math skills are correct.
Obsessed as I am with theories about the vast right wing conspiracy Hilary used to talk about when they were killing her universal health care concept, I quizzically inquired as I paid a mere $16 for my weekly fill up to a fresh-faced, alert-looking young man at the cash register, “I don’t understand the gas prices. What is this, a pre-election day sale?”
The young man did not hesitate or blink an eye as he took my money. “Absolutely” he replied. We talked a bit more. The only thing his company has told him is that gas is down because we have a “surplus”. He went on to speculate that it could drop as low as about $2.00 by November!
Where is the surplus coming from? Does somebody, anybody, have a rational explanation for this? My best guess is that GW has a little sweetheart deal cooked up with the Saudis. Just a guess, and I could be very wrong. Tell you what though: I might be persuaded to put up some serious dough betting that gasoline prices in this country will take a rather sharp turn in the opposite direction sometime after election day and before the end of the year. Any takers?