Why is it Gas Prices can Climb based on News

Isn't this price gouging, If it was a hurricane and you sold water to people like this they would arrest you. Why can they do this and why isn't some arrested like the people selling water.

I am looking to people here that may know the law on this, this seems like one of those things, that is like cigarettes, where the law doesn't pertain to people.

OR is it because we buy all our oil on the stock market ( not sure if we do, but we know stocks go up and down because of news).

There has to be a law!!
and please I would really like to know the reason, not just "cause the illuminati rule the oil business" or something. There has to be actual laws that allow this

Thanks

I got this because of the Texas Oil explosion listed in the ASTNN, the real story on the news said gas prices climbed shortly because of the news. No fact just hey it might effect us, so just in case. When it doesnt effect us do we get our money back.. UGGGHHH Very Frustrating

[Edited on 31-3-2004 by ShiftTrio]

I think because gas prices are based on the futures market, so it's not about the cost of the gas you're pumping but the percieved or estimated cost of replenishing the oil company's supply of gas.

You guessed it. Oil is a commodity traded on the NYSE. Rumors and such can affect the price. There were probably quite a few buys when news came out that the one of the largest refineries was on fire. Speculation that the price would rise I guess.

One of my favorite recent headlines. I believe it was on Reuters. "Stocks fall on speculation of falling stocks."
Crazy if you ask me.

Click here to watch the prices rise and fall.

As my former economics teacher once said, "all of economics is just assumption." Changing the economy is based on assuming how the supply and demand will change.

Doesnt that seem very suspect, I knew I should payed more attention to Trading Places.. Buy frozen OJ.

Now I can see this, but then why do certain gas stations in the same area have different prices. it seems like its insurance for them rather than supply and demand, which is a bunch of BS.

Buy the gas, mark it up, buy more gas if it cost more charge more fine, but not because you think it may cost more, How messed is that

There has to be something we can do about this. We are so bent over for Oil in this country. You would think the best thing to do would be to take it off the market like that, it seems to only make things worse.