Wrong again, Kenneth...
You state:
Most of the price increase from 2006 was caused by the falling dollar.
Here is the real truth:
2005–2006 increases
In the United States gasoline prices reached a record high during the first week of September 2005 in the aftermath of Hurricane Katrina. The average retail price was nearly $3.04 per U.S. gallon.[63] The previous high was $1.42 per gallon in March 1981, which would be $3.20 per U.S. gallon after adjustment for inflation. In comparison, the average retail price of a litre of petrol in the United Kingdom was 86.4p on October 19, 2006.[64] This equates to USD 6.13 per U.S. gallon.
On January 17, 2006 crude oil for February delivery rose by USD 2.38 (3.7%) to USD 66.30 a barrel. This was the highest increase since early October 2005. Observers believe that violence in Nigeria, and the increasing tension between USA and Iran are responsible for this price increase. Continued tension between Iran and USA raised the price to $68.38 on January 31.[65] However, due to rising stockpiles of crude oil and an abnormally warm northern winter, on February 14 the price of crude hit a 2006 low of $59.60.[66]
Oil production in Iraq continued to decline as result of the ongoing conflict, decreasing to an output of just 1 million barrels per day (160,000 m³/d).[67]
Mid-2006 increase
Regular gasoline prices were averaging USD3.036 per U.S. gallon across the U.S. in August, 2006, slightly below the post-Katrina peak of USD 3.057.[68] Adjusted for inflation, these U.S. prices were the highest in 25 years. The all-time U.S. inflation-adjusted record is approximately $3.20 per U.S. gallon, set in March 1981.[69]
In July 2006, crude oil for August delivery traded over USD 79 per barrel (bbl),[70] an all-time record. The mid-2006 runup is attributable to increasing gasoline consumption, up 1.9% year over year in the U.S., and geopolitical tensions as North Korea launched missiles, the tension between Iran and USA drags on, and Israel and Lebanon went to war. The early 2006 runup in prices has been attributed to a number of factors, including continuing supply disruptions from the 2005 Atlantic hurricane season (18% of Gulf Coast supplies were still off-line in early 2006),[citation needed] supply disruptions from the changeover from MTBE to ethanol, lingering concerns over Iran and Nigeria, and anticipation of higher summer demand in the Northern Hemisphere. Hostilities in Nigeria alone have caused a supply disruption of 675,000 bbl per day.[71] On August 7, BP shut down its Prudhoe Bay, Alaska field due to pipeline corrosion, bringing supply down by up to 400,000 bbl/day or about 8% of total U.S. production.[72]
The higher price of oil substantially cut growth of world oil demand in 2006, including an outright reduction in the oil demand of the OECD.[73]
en.wikipedia.org
Do try to keep up Kenneth. Your talking points are getting very stale.
Diz- |
