The other day I spoke to my grandfather about the current economic situation. He is very angry about the price of gas, as well as oil, mostly because it makes absolutely no sense at all. He explained to me that on CNBC, he couldn't help but notice the market watch in the corner, where oil was DOWN and gasoline was UP.
This is Arco, which pretty much has the cheapest gas in the Bay Area.
Chevron has always felt the need to be a few cents higher.
What exactly is going on here? Again, it doesn't make much sense. My grandpa likes to blame the oil companies, while I prefer to direct blame at the oil-producing countries who believe that $100 per barrel is a fair price (never mind that they were still building gold-placated palaces all across the Middle East when it was only $25 in 2003). Either way, I think both take the blame.
With the economic downturn and lack of profit, maybe the oil companies have decided to just start raising prices again to see how long they can do it until consumers start complaining again. If anyone else has a theory as to why gas is going up, I would really like to hear it.
This isn't just a local or a national issue. I remember last month when Russia threatened to shut off gas supplies to the Ukraine. Russia accused Ukraine of falling behind in payments, but I think that Vladimir Putin and Dmitry Medvedev wanted to generate a crisis to boost the price of gas and provide some relief to Russia's faltering economy.
But that's that. Gas at $2.09 a gallon is a hell of a lot cheaper than what we were paying over the Summer. As of two weeks ago, gasoline at Arco was the cheapest I had ever seen it since moving to California from Boston. Notice all of this bad economic news is not stopping people from going out and enjoying their lives...one of the local cafes and the Subway was packed with customers all anxious to enjoy the beautiful weather after a couple days of rain.
Yes, I realize that this is turning into more of a multi-pronged ramble instead of a post, but I thought I should show this picture. There's been a lot of panic that California is undergoing a drought, but the recent rain is really beginning to green-up the hills. The view of the mountain is quite breathtaking, isn't it?