Wednesday, April 07, 2010

Where Is the Media Hysteria On Rising Gas Prices?

Just a rhetorical question, of course. Recall two years ago when prices hit around $4 a gallon nationwide and there was absolute hysteria in the media. Every day, all day, top of the hour newscasts we were inundated with stories on how people had to sacrifice food to buy gas. Little old ladies couldn't afford medicine due to gas prices. It was hammered home relentlessly. And, of course, the evil Bush and "greedy" oil companies making a paltry eight cents on the gallon were held responsible. Then when prices dropped precipitously the media hand wringing vanished, Bush wasn't give credit and the sob stories disappeared as fast as an Obama college transcript.

Cut to today and we're seeing prices rise precipitously and when was the last time a national newscast even mentioned gas prices?
The numbers keep ticking up. Nationwide the price of a gallon of gas hit two eighty three this week.

That’s up eight cents over the past month.

It’s up eighty cents from a year ago.

CNBC’s Sharon Epperson said, “If we continue to climb like we’re doing here, for the price of crude oil, we could likely get to that four dollar mark.“

Analysts call it a perfect storm of factors.

More drivers on the road in warmer weather, refineries switching fuel blends for the summer and what could be the biggest driver; futures traders betting on a growing economy.

Former Associate Deputy Secretary of Energy Randa Fahmy Hudome said, “People who are trading the oil futures in the speculation market who are rallying and predicting that the economy is going to increase tremendously.“

They’ve bid up the price of oil to a five month high.

If that trend continues, “That could take the wind out of this economic recovery that we’ve seen, that could starve the economic recovery,“ said Epperson.
Just wait until we're whacked with carbon and energy taxes. Of course the media will spin that as doing our part to save the planet.

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