The same thing happened in the 70's. Throughout the 50s and 60s, the oil producing countries sat back and watched as cheap gas caused cars and trucks to get bigger and thirstier. Countries like the US could not meet demand with their own supplies, they had to import oil from other countries. The producers waited until they controlled a vast majority of the supply, then pulled back on production. Prices skyrocketed.

So, just like in the 50s and 60s, in the 90s, the US has gorged itself on cheap oil, and the oil producers have been very happy to supply it. They now control the vast majority of the supply, and, just as before, they are now pulling back on production, knowing full well that the US and others need to have the oil to drive their big gas guzzlers.

That drives the price up. It is simple economics, supply and demand. Demand is way up because of the big SUVs (fuel economy averages have been falling for years now), supply gets cut back, prices go up.

But OPEC and Russia and Mexico are being a lot smarter than in the 70s. They don't want a big recession like that produced in the 70s, they just want to drain our pockets in increments so the shock isn't as great. So they pull back production by a few million barrels at a time, and we get a $0.10 jump one week, another $0.10 the next, etc.

And the US government ignores fuel economy standards that would help solve the problem. So mommies drive their one child to soccer practice in 10mpg Expeditions. SICK!!!!




posted by 207.18.19...

• Gas prices: Citco Reg $1.43 to $1.55 in 7 days!!!, pursang, Wed, 27 Mar 2002 12:39:23
  • $1.34 in Fairfax, sucks. n/m, Rob 85 Turbo, Thu, 28 Mar 2002 17:06:32
  • 77.9 cents CAD per Litre of Premium in Nova Scotia, bluenose, Thu, 28 Mar 2002 10:54:17
  • Try $3.66 a gallon here in Germany for Super Plus..., Eric Burr, Thu, 28 Mar 2002 01:28:43
    • Yeah but we dont have any railroad system here, Rob 85 Turbo, Thu, 28 Mar 2002 17:07:47
      • Have you bought a train ticket here?..., Eric Burr, Thu, 28 Mar 2002 18:56:20
  • You don't want to know the british price. n/m, StanleyB, Wed, 27 Mar 2002 21:55:48
  • yes I'm getting very nervous, Franz '87 9000t, Wed, 27 Mar 2002 20:25:03
  • thats cheap! try aussie fuel costs>>> US$2.02 a gallon!, sab, Wed, 27 Mar 2002 16:32:23
  • Re: Gas prices, compaqted, Wed, 27 Mar 2002 15:01:57
    • Re: since price rise is due to production cutbacks,, Jim, Wed, 27 Mar 2002 23:22:01
      • those who don't remember history are doomed to repeatit, compaqted, Thu, 28 Mar 2002 10:29:40 <-- Viewing This Message
        • Re: then we'd better remember the history correctly, Jim, Thu, 28 Mar 2002 15:50:05
  • Marathon Premimun from $1.53 to $1.30 in 4 days, Dinger, Wed, 27 Mar 2002 13:24:19
    • Re: Phila area gas prices, Steve L, Wed, 27 Mar 2002 14:10:55
      • Gas Prices, AJRitz, Wed, 27 Mar 2002 15:03:29

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