Oil industry experts warn that the price for a gallon of gas will reach $5 before summer. They blame the unfolding conflict in Libya and across the oil-producing Middle East for exploding prices.
The price for a barrel of oil rose 31 cents to $106.07 today.
Oil prices do not follow the classic laws of capitalist supply and demand. Despite the fact the Energy Department reported a 2 million-barrel rise in crude oil supplies for the week that ended March 18, according to a survey by Platts, the energy information arm of McGraw-Hill Cos, the price of gas continues to rise. The increase represented 970,000 barrels.
Supply and demand is an irrelevant theory under globalist mercantilism.
“Supply and demand mean nothing to the oil industry. Basic economics teaches that if supply goes down, prices will go up. If demand goes down, prices go down. The inverse of each is also true, unless you are in the oil industry,” writes The Mercury in an op-ed. “Previous excuses for price increases of gasoline have been damage to refineries by Hurricane Katrina, a pipeline leak in Alaska, the increased cost of refining for the summer time driving season, the war in Iraq, and most anything that can be associated with gasoline.”