Gassy

From the Google News Scoop:

Oil prices up on word US ship fired on boats in Persian Gulf


And from a golden oldie:

Gas Prices Explained

STORAGE TANKS ARE FILLED TO CAPACITY — Gasoline prices rise. Large inventories have a depressing effect on profit margins. Oil companies make an enormous contribution by volunteering to store such quantities for potential emergency use. It is only natural that consumers bear some of this cost.

STORAGE TANKS ARE DRY — Gasoline prices rise. Huge storage losses were formerly carried as a debit by the oil companies. That is no longer possible.

OPEC INCREASES PRODUCTION — Gasoline prices rise. This is based on a fundamental tenet of our market economy. The heightened demand for tankers disproportionately increases transportation charges.

OPEC DECREASES PRODUCTION — Gasoline prices rise. Again, economics at work. Undiminished demand for a scarcer product means prices go up.

THE MIDEAST IS AT PEACE --gasoline prices rise. Peace has to be illusory, so storage tanks are filled in anticipation of the worst. Heightened demand raises prices.

THE MIDEAST IS AT WAR— Gasoline prices rise. Hoarding increases demand, which means prices go up.

CONSUMERS CONSERVE — Gasoline prices rise. Reduced consumption means the refineries are operating well below capacity. This means the unit cost is raised — an increase that must be passed along.

CONSUMERS SPLURGE— Gasoline prices rise. Oil companies are rendering society a signal service by raising prices in an effort to curb consumption, thereby reducing Western dependence on oil.

CONSUMERS TURN TO GASAHOL — Gasoline prices rise. This proven gasoline substitute disturbs the refining process, which means higher costs for all-distillates.

CONSUMERS REJECT GASAHOL -- Gasoline prices rise. Increased demand has the effect of making each gallon more precious, hence, economic forces increase the price.

THE DOLLAR IS UP — Gasoline prices rise. Most oil prices arc measured in dollars. It doesn't lake long for the impact of a stronger dollar to be felt.

THE DOLLAR IS DOWN — Gasoline prices rise. Not all contracts sealed on the spot market in Rotterdam are in dollars. Furthermore, ii takes a while for wholesale costs to work down to the consumer.