The corporate America no longer thinks too hard about how to BS the consumer, as the excuse in the story snippet shows. The most influential factor in the prices going up is a relation between supply and demand. It is obvious that the refiners have been slashing the production of gas more than the demand calls for, as the price board at the gas stations show. Unlike the OPEC members who have been always honest to offer the true reason for cutting back the production of oil, Exxon/Mobile energy mafia feel like making up stories to justify the reason behind the refinery pumps turning slower.
Drivers are being ripped off even more now than before," said Stuart Pollok, who was filling up recently at a Chevron station in downtown Los Angeles. He pointed out Exxon Mobil Corp. reeled in billions in profits last year when oil prices neared $150.
Others see the conspiracy reaching higher.
How much higher? Like $3.50 per gallon during the time when the economy is not doing well at all?
The article touches upon another issue that a few are aware of.
The benchmark for crude oil prices is West Texas Intermediate, drilled exactly where you would imagine. That's the price, set at the New York Mercantile Exchange, that you see quoted on business channels and in the morning paper.
Right now, in an unusual market trend, West Texas crude is selling for much less than inferior grades of crude from other places around the world. A severe economic downturn has left U.S. storage facilities brimming with it, sending prices for the premium crude to five-year lows . . .
. . . That foreign oil sells in some cases for $10 more per barrel — and that doesn't even include shipping.
Brent North Sea crude, which feeds some East Coast refineries — and therefore winds up at many gas pumps around America — now costs about $7 more per barrel than the West Texas crude. Deutsche Bank analysts say the trend should continue.
Gee, how about buying the cheaper stuff?
You wouldn't believe the answer that follows in the article: Not enough pipes!
Why is it so that WTI is the benchmark when, as a commodity, hardly represent the consumption trend?
Only the Madoffs of the oil industry can explain that.
news.yahoo.com
(visit the link for the full news article)
[edit on 2/15/2009 by stander]
and have increased
the price of both petrol and diesel over the last month or so 
