Oil:Fundamentally, there is little reason for the recent price spikes
Green Energy

Oil:Fundamentally, there is little reason for the recent price spikes


The economy shows only manipulated numbers of some kind of hope for the end of the year for those who emotionally or politically cannot bear the realities of mild deflation (checked those LCD screen prices lately ?) .

Prices on homes, appliances, vehicles, even some foods are falling.

Jobs continue to disappear.

But gasoline here in Maine gas has gone from just over $2 to $2.47 in less than a month despite softening of demand, and incredibly high inventories.

When supply outstrips demand, and prices rise what shall we think?

Huh, Wahabbis? Huh, A'jad, Hugo and thugs?

Oil and gasoline prices hit a new high for the year Wednesday despite expectations that OPEC will not cut production again and more bad news arrived for the nation's automakers.

Benchmark crude for July delivery rose $1 to settle at $63.45 a barrel on the New York Mercantile Exchange. Prices haven't been that high since early November.

Retail gasoline prices, which are up 19 percent in the past month, rose 0.9 cents overnight to $2.434 a gallon (64 cents a liter), according to auto club AAA, Wright Express and Oil Price Information Service. Prices are now 10 cents higher than a week ago and 38.4 cents a gallon higher than a month ago. It's also a high for the year.

Oil prices dipped below $35 a barrel as recently as March.

Many experts say that fundamentally, there is little reason for the recent price spikes and that consumers should expect related costs to come down before the summer is over.

Major U.S. industries continue to struggle and on Wednesday, a bankruptcy filing by General Motors Corp. appeared inevitable.

Jim Ritterbusch of Ritterbusch and Associates said U.S. gasoline prices could be back down to nearly $2 a gallon by the end of summer.

"Demand is going to remain weak, and we've got plenty of excess refining capacity to crank up production," he said.

ANY TAKERS WHEN DEMAND IS DOWN
NOW BUT PRICES RISE DRAMATICALLY?

TOO LATE FOR THAT AMERICAN FUEL CELL CAR NOW, HUH?





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