Explain this one to me
The price of oil has dropped over the past couple days due to speculation (there’s that word again) that the sky-high prices will cause people to drive less…which is true. So with oil prices dropping, what’s that mean for gas prices?
Oh, they set A NEW RECORD HIGH NATIONAL AVERAGE.
So follow me here – if oil prices go up, the price of gas has to go up to make up the difference. If the price of oil goes down, the price of gas goes up because…um…I guess demand goes up for gas. Wait, that doesn’t make any sense. The price of gas hasn’t gone down to stir the demand – it’s still at the low point that caused the price of oil to go down to begin with.
To hell with this. I still have to get to work, so I’ll pay it anyway.
Categories: Wall Street, gas, oil