Tag Archives: prices

Business/Economics, Idaho, U.S.

Occupy America Corporate Rip Off: Gas prices in Idaho go up despite most of the U.S. seeing prices go down, blame decreased production

September 19, gas prices in Idaho are about 70 cents above the national average.  One local TV station tried to give the usual explanation by saying it’s a mix of regional demand and state taxes.  FAIL!

I just checked on demand, and according to the latest numbers from the U.S. Energy Information Administration, demand for gasoline across the country is still below last year’s numbers.  On August 26, 2011, the four week average demand for gasoline was at 9.169 million barrels per day.  Compare that to the four week average of a year ago at 9.261 million barrels.  So there is a slight decrease in demand.

Regarding fuel taxes; there has been no increase in Idaho fuel taxes since 1996!

What is happening is that production of fuels has been dropping.  In other words, production is falling faster than demand, and that has the same effect as demand going up; prices go up (when there is less of something, in relation to demand, it becomes more valuable).

According to U.S. Energy Information Administration, PADD 4 gasoline production is down from last year. PADD 4 includes Colorado, Idaho, Montana, Utah and Wyoming.  The four week average for “finished gas” production, for August 2011 was 0.273 million barrels per day.  Compared to last year’s production of 0.296.

In other words, fuel producers are deliberately keeping production just under ‘demand’ in order to keep prices high.

Business/Economics, International, Opinion

Oil prices drop, suddenly there’s a new oil disaster, big pipeline leak in Canada

Ever since the supposed raid to kill bin Laden was announced, oil prices have been falling.  In fact, May 5, oil is about $99.00 per barrel for WTI.

Guess what, now there’s a huge leak in a big oil pipeline in Alberta, Canada.  How convenient.  Not only that, but officials who control the Plains Midstream pipeline claim the leak started on April 29!  So far, 4.5 million liters (1.2 million gallons) of oil has leaked out.

International

Food Crisis: World Food prices in “Danger Zone”, creating Mass Poverty

The U.S. based World Bank says international food prices have entered the “danger zone”, and are heading towards the “tipping point”.

World Bank president, Robert Zoellick, blames in on several things.

People in countries where the economies are good, are buying more meat.  The problem is that increasing meat production means more grain crops going to ranchers, instead of food for people.  Crops used for bio-fuels, instead of food,  is also a problem.

Then there’s a supply system problem; it’s taking longer to rebuild stocks of basic food ingredients, once they are used up.  This is made worse by the fact that many countries are facing lower crop production mainly because of climate change (cold wx, flooding and drought).

Add to that oil.  Petroleum is used for fertilizers, pesticides, etc, and that is adding to the cost of food production.

One country, China, is so scared of lack of food that they’re buying up huge tracts of land in Africa for food production.

Zoellick says this is a long term problem, we’re only at the beginning of higher food prices.  Also, while countries with more money to buy food are seeing higher prices, the poorer countries are paying far more for their food.

Zoellick says just since last year the higher prices have pushed 44 million people into poverty.  He predicts another 10% increase in food prices will push another 10 million people into poverty.

Business/Economics, International, U.S.

Get ready for Oil prices to Jump, Economist say it could destroy Economy

Already, oil trading in Europe has seen oil prices jump $2.00 per barrel since Friday.

It is due to the attacks on Libya.

In a CNNMoney survey  16 out 23 leading economists say rising oil prices are the number one threat to any economic recovery.

Interestingly The Federal Reserve showed little concern over rising oil/fuel prices during its March 15 meeting.