We all know that gas prices are rising, but as you attempt to understand why they are rising, your answer depends on which “News” you read. This is an excerpt from CNNMoney.com :
Gas prices on the rise
(CNN) — Gas prices nationwide jumped a bit over the past two weeks, according to a survey published Sunday.
January 25, 2009- Advertisement -
A gallon of self-serve regular cost, on average, $1.86, said Trilby Lundberg, publisher of the Lundberg Survey. That’s a rise of nearly 8 cents over the past two weeks.
Moderately higher crude oil prices contributed to the price increase, she said. MORE
CNN’s reporting on this issue seems to choose what the oil companies and Wall Street want the public to believe, however, if you bother to read MSNBC - which published an in-depth answer to rising gas prices seems to undermine CNN - by attempting to reveal the whole story rather than publishing half-truths on a matter that is far more complex than “rising crude prices”:
Crude oil falls as recession batters U.S.
Corporate results keep investors pessimistic about demand
Feb. 6, 2009
NEW YORK - Oil prices sank below $41 a barrel Friday as the government reported that U.S. employers slashed more than a half million jobs last month, the most in 35 years.
Light, sweet crude for March delivery dropped a dollar to settle at $40.17 a barrel on the New York Mercantile Exchange. Retail gas prices rose to almost $2 a gallon as refineries took units temporarily off-line for seasonal maintenance.
Oil traders see layoffs as an instant drag on oil demand. People have less need for gasoline when they no longer have a daily commute. They also stop buying toys, nonstick pans, raincoats and millions of other products that are made with petroleum.- Advertisement -
“You get the sense the market wants to go higher,” he said. “Those who sell at $40, they’re going to get tired of doing that. Eventually they’re going to hop on board and push this thing to $50.” MUCH MORE
To be fair to CNN, I do take note that their article was published on January the 25th, and MSNBC published their story, compliments of the Associated Press, on February the 6th - so there is a thirteen day difference between the publication of both articles; BUT, there are three facts that did not show-up in the CNN article that were still factors in rising gas prices! As MSNBC pointed out:
Oil traders see layoffs as an instant drag on oil demand. People have less need for gasoline when they no longer have a daily commute. They also stop buying toys, nonstick pans, raincoats and millions of other products that are made with petroleum.