Quote:
Originally Posted by **********
Here's the truth:
Gas prices are up because of SPECULATION in the market. When things are unstable in the middle east as they are right now, more people buy stock in oil companies.
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Can you explain for us simpletons how investing in a company that drills or refines oil increases prices? To a simple minded person like myself, it would seem that investing in wells or refineries would increase supply and thefore REDUCE prices. Please explain.
I'm curious too, with about $18 trillion in gas being used each year, how does $1 billion in hedges or speculation have any effect at all? I mean, that's about 0.0004% of the market.
How does 0.0004% make a bigger difference than the 14% direct tax on gas, plus the indirect taxes?