Hmm.. so it's BAD when OPEC is a cartel but GOOD when the US imposes tariffs on steel, prawns and other imported goods produced by labour paid 10% of what US workers are paid?
Interesting point. I think you are right to point to the demand side... The lack of price elasticity in the US (and everywhere, to be fair) is a big part of the problem. Still, I do not - and will not - agree with commodity cartels Matt
Why does everyone always worry when the oil/gas price goes up? Stop and think about it for a bit. There is far too much traffic on the road already. Whenever there is a hike in gas prices this always results in a slight decrease of the traffic. There are a lot of people out there driving around for nothing. This takes a huge toll on our environment. I think they should raise the tax on gasoline to get it up to about $5 a gallon and reduce the tax on income the same amount. People shouldn't be discouraged from making a decent income, this doesn't cause any harm to anyone. But too many people in too many cars are a major problem in all of our cities. If you raised the tax on oil enough you wouldn't need as much and could probably survive without a lot of imports. This would keep a lot of money from going to the Middle East where it can be used to finance terrorism.
"This would keep a lot of money from going to the Middle East where it can be used to finance terrorism." "One man's terrorism is another man's freedom fighter"
Don't get madd. Instead get even! The CLZ3 Futures is in play at this price level. Although I still hold to the fact that I HATE the energies I STILL from time to time will "SCALP" BIG BIG BIG profits from a single trade at times like these. 2BC setup of Daily Chart.
http://www.guardian.co.uk/russia/article/0,2763,1071764,00.html "Russian oil baron jailed on tax charge."