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Re: O/T....ya know what i don't get....


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Posted by ScottyHOMEy on March 20, 2008 at 18:19:55 from (71.241.213.254):

In Reply to: O/T....ya know what i don't get.... posted by Dairy Farmer in WI on March 20, 2008 at 17:56:29:

It's all a move to drive down demand. The gov't and the analysts say as much when they allow that prices are expected to drop in May due to falling demand.

It's their only choice right now. We have no more refinery capacity to deal with increased demand. It's been 20+ years since a new refinery was built in this country because no one wants one next door, and the existing refineries have only been able to manage incremental increases in capacity.

Yes, diesel should be cheaper. It takes less crude to make a gallon of diesel. And there is a limit to how much gas they can get on a first run out of crude. But they "crack" diesel and other heavy distillates to make more gas. The last thing they want is gas lines.

The price is only loosely linked to the cost of production. The supply and demand curves are what are driving the relative prices of gas and diesel. As for the rising cost of either, you have demand, the falling dollar used to buy the crude . . .the list goes on.


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