Thursday, February 19, 2009

If Oil Is Getting Cheaper, Why Isn't Gas?

The problem with our world of fast politics and 30 second sound bites is that they make complex issues look simple.  Just look at oil prices.  The price of oil keeps dropping but the price of gas is going up.  Huh?  How is that possible?

I've heard a lot of conspiracy theories but found a far more credible article about it the other day.  The reason that gas prices are going up is because oil prices are actually going up.  It seems that the oil prices you see in the press are for one specific type of oil (West Texas Intermediate).  So while that oil price is going down, the rest of the world's oil prices are going up.

Maybe they should change to an average of oil prices...

No comments: