Everybody knows that crude oil prices have been relentlessly moving to record highs. But here's the really odd thing: gasoline prices haven't kept pace with oil prices. In fact, even though gasoline is more expensive than ever, it's still about 40% behind the increase in crude oil prices.
How could this be?
Well, one reason is that the oil companies have been using-up the stocks of crude oil they have on hand and postponing purchases of the higher priced crude oil on the market today.
Why would they do that?
Maybe they're hoping that crude oil prices will fall. Maybe they hope that once George W. Bush has been elected, and after he brings peace and free elections to Iraq sometime in January, the grateful Iraqis will turn on the tap and the oil companies will be able to refill their tanks at new low prices.
Yeah, I'll bet that's it. Thank goodness those crafty oil barons are looking out for you and me and gaming the oil producing nations on behalf of the American consumer.
Or maybe there's something else going on.
It just might be that the oil companies are conspiring to artificially hold gasoline prices down until after the election in order to affect the outcome of the election.
If that's the case, better prepare for gasoline prices to rise about 40% or so to match crude oil prices. That would be something like $3 a gallon just in time for New Years. And it would also mean more record profits for the oil companies.
New York Times - Surging Oil Prices Lift BP's Quarterly Profit 43%
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