so who's fault is it ?

[manny15]

the Saudi's say oil price's are unrealistic and over priced, due to the speculators, ie: investors, the speculators say it's supply and demand...well I'm a novice, so what's your take on it?

 

[completesportsman]

I just feel like we're all getting SCREWED! I for one don't get the supply & demand BS. If that were the case I think we would be seeing gas stations out of fuel. So far I've not seen any that are running out.
All this crap started right after hurricane Katrina for us in the southeast. Most of our gas in NC comes from the gulf coast. There were shortages in the 1st week or two after Katrina but then after the damage was repaired and everything was up and running again the gas prices just stayed up and have only gone up since.

 

[stanley]

LAST EDITED ON Jun-10-08 AT 10:29AM (MST)[p]The answer is "All of the above" Manny...... Speculators and supply & demand are both playing a role.

Bottom line in a free market though is ALWAYS supply vs. demand. As long as there is high demand, the prices will continue in kind. When the market reaches a breaking point (whether it be due to speculators, gas guzzling consumers, or what-ever....), the price will stop rising. Simple economic theory will always rule in a free market.

S.

PS: I've started to reach my breaking point!!! I'm taking the bus to work 2-3 days a week here in Phx. Not that bad, once you get used to is.... ;-)