The high prices were causing big changes in the driving habits of American motorists, with gasoline consumption dropping sharply. And one result of the big decline in U.S. consumption was a record amount of gasoline exports by U.S. refineries, to Central and South America and even Singapore and Australia.So gas prices are at record highs for this time of year. The "news" presenters have been trotting out the old "change of blend" excuse that they trot out every year, but here we have it. There is no "shortage". There is no "change in blend". There is so much gasoline available, in the US that US refineries are sending it elsewhere. What was that rule I was taught in school? If the supply is high and the demand is low the prices should go down. Do I remember that right? "Let the market decide". I believe I heard that too.
Thursday, February 28, 2013
From the LA Times