Thursday, June 19, 2014

Terror In Iraq Causing Gas Prices To Soar

Just like in the past, every time there are problems in the Middle East – the price of crude oil and gasoline go up. A little over one week ago, a terrorist organization called ISIS marched across the Iraqi border with Syria and each time a town fell, the price of gas went up. While there is some justification to rising gas prices when parts of the Middle East become unstable – more times than not, I believe it is speculators in the oil and gas marketplace who are really to blame. Free markets are good – because when operated correctly, they keep the price consumers pay competitive. However, it has been proven time and time again that competition in the oil and gas business is usually not controlled by supply and demand issues – but instead by a few really rich people who know how to manipulate the price of oil and gasoline. The next time you pull into a gas station and notice the price has gone up – remember that little bit extra you are paying is probably going to some rich dude - who knows how to turn lemons into lemonade.


Hutch Report Archive