So, gas prices’ll drop, right?
According to a news report from Forbes online: “US oil giants Chevron/Texaco and Exxon/Mobil have made a major oil discovery in the West African island state of Sao Tome and Principe. …Drilling results showed the hole could be holding more than a billion barrels worth of oil and gas.”
It seems that every time there is a report of political instability in an oil producing state, or there is a problem with the Alaska oil pipeline, or some refinery has had to shutdown for maintenance purposes, that within days --- if not hours --- the price of gas at my local pump jumps a nickel or so. Even though it takes weeks for the oil from one of these sources to actually reach my pump in the form of finished gasoline…
So, with this great news about a major new oil find off of Africa, I can expect to see a nickel drop in the price of gas at my local pump soon, right? Well no, because you need to understand it takes a long time for oil in the ground to reach my pump as finished gasoline…
posted by Dave Ramacitti @ 5:44 AM
1 comments
1 Comments:
Dave's PS: Well gee, what a surprise, they didn't go down. In fact the same day I posted this comment several stations in our area raised their prices at the pump by 15 cents! Oh, wait, I think I get it... The "good news" that oil had been discovered off of Africa was really "bad news" to the oil company investors because it might drive down prices, so the oil companies had to reassure their investors by raising prices.
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