Louisiana Light • 4 days | 72.39 | +1.98 | +2.81% | |||
Bonny Light • 3 days | 75.19 | +1.17 | +1.58% | |||
Opec Basket • 4 days | 72.79 | -0.28 | -0.38% | |||
Mars US • 2 days | 71.39 | +1.89 | +2.72% | |||
Gasoline • 2 days | 2.501 | +0.065 | +2.65% |
Bonny Light • 3 days | 75.19 | +1.17 | +1.58% | |||
Girassol • 3 days | 77.03 | +1.40 | +1.85% | |||
Opec Basket • 4 days | 72.79 | -0.28 | -0.38% |
Peace Sour • 3 days | 64.35 | +2.01 | +3.22% | |||
Light Sour Blend • 3 days | 65.65 | +2.01 | +3.16% | |||
Syncrude Sweet Premium • 3 days | 74.60 | +2.01 | +2.77% | |||
Central Alberta • 3 days | 63.95 | +2.01 | +3.25% |
Eagle Ford • 4 days | 66.58 | +2.01 | +3.11% | |||
Oklahoma Sweet • 4 days | 66.50 | +2.50 | +3.91% | |||
Kansas Common • 5 days | 58.25 | -1.50 | -2.51% | |||
Buena Vista • 13 days | 76.15 | -1.09 | -1.41% |
China’s increasing presence in Central…
Copper prices touched a six-month…
Americans complain about the increasingly high prices that they are paying for gasoline, but they need to direct that their anger where it could do the most damage. Basically Obamas administration has failed to effectively employ energy policies to reduce the energy prices paid by American citizens and the DoE has proven itself to be ineffective, and therefore obsolete.
President Carter signed a law in 1977 to give the new Department of Energy the “responsibility for energy policy, regulation, and research” and “to place major emphasis on the development and commercial use of solar, geothermal, recycling and other technologies utilizing renewable energy resources”.
Each president has basically slightly altered the briefing of the DoE in order to bring it in line with his own policies. The DoE was never intended to just lower the cost of energy, it is an tool used to control the US economy.
A free market should be able to respond to the desires of the consumers. Supply and demand should attempt to naturally match up, and whichever side the deficit lies should determine the price, low or high. In a free market people who want petrol and can afford it will buy it, those who can no longer afford it will look for an alternative. Demand will drop compared to supply, and in order to encourage demand the oil majors will be forced to reduce prices.
The problem is that the government and government run institutions such as the DoE try to control the market. They use laws, taxes, and inflation to artificially influence the markets in a way that they believe will work, but it turns out they are wrong.
The best solution for the time being is to remove the government control from the situation and allow the markets to return themselves to a natural state.
By. Charles Kennedy of Oilprice.com
The materials provided on this Web site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice.
Nothing contained on the Web site shall be considered a recommendation, solicitation, or offer to buy or sell a security to any person in any jurisdiction.
Trading and investing carries a high risk of losing money rapidly due to leverage. Individuals should consider whether they can afford the risks associated to trading.
74-89% of retail investor accounts lose money. Any trading and execution of orders mentioned on this website is carried out by and through OPCMarkets.
Merchant of Record: A Media Solutions trading as Oilprice.com