Big Oil’s New Conspiracy

Needless to say (you’d think), the arguments alleging oil company manipulation of the market value for gasoline are fundamentally flawed. According to these arguments, oil companies have the power in the first place casually to adjust the market value of gasoline with the same degree of impunity that you and I have in determining what we want to have for lunch. Of course, even those who are minimally knowledgeable about economics know that the primary influence on the market value of gasoline is the law of supply and demand. As the USA Today report linked above suggests, the end of summer means reduced driving needs which in turn reduce the demand for gasoline. The report also points out that gasoline use in the first eight months of this year is up by less than the amount considered typical. This reduced demand helps push down prices.

tcsdaily