OF3-4/23/07 8:25AM THE RISE AND FALL OF GASOLINE PRICES
The laws governing the price of gasoline are very different from the laws of gravity. When an object falls it accelerates as it drops falls faster and faster. When an object is rising the same force of gravity tends to SLOW its climb. But with gasoline the saying is the prices shoot UP like a skyrocket and when they come down settle down like a feather. Very. Very slowly. As if blown sideways by every passing breeze. According to the latest Lundberg survey gasoline prices are settling slowly but there does seem to be a breezy updraft.
"Self-serve regular now costs 2 dollars and 87 cents per gallon on average and its up 8 cents from 2 weeks ago." said Trilby Lundberg, publisher of the Lundberg Survey.
The rocket and feather paradox was in play in the latest Lundberg survey which as always shows the price of gasoline to be as much a function of geography as anything else. All Depends on where you are says Trilby Lundberg.
"In our April 20 survey the lowest average was Minneapolis, 2.65 and the high is San Francisco, 3.37." said Lundberg.
From the first of the year until the end of March wholesale and futures valuations and prices of petroleum rose 50%.as demand kept increasing but that's OVER, she says.
"There's evidence that prices are peaking and even falling. That is if crude oil prices do not jump. We can see that prices independent marketers pay at terminals are down this week. Also even at retail in parts of the mid-west prices are down." said Lundberg.
The refineries were FIXING things it seems. No not PRICES my goodness what they were fixing was tanks, pipes that sort of thing. You know maintenance and all that. So the OIL they were selling was the oil they already HAD in store.
"This has been an extended period of repairs and maintenance at our refineries who are using their inventories instead of production to meet demand." said Lundberg.
There is always a REASON, isn't there? The Osgood File. I'm Charles Osgood on the CBS Radio Network.
The Osgood File. April 23, 2007 |
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