Gasoline rose for a fourth day, reaching a two-month high, on expectations that a cleaner-burning fuel required this summer for densely populated regions of the U.S. may be in short supply when demand peaks.
Again Goldsnow, you provide an example of public market failure in that the govt has mandated that MTBE be phased out and the new formulation, patented by Unocal, utilized.
Could we provide enough gasoline were these regulatory obstacles not in the way?? Surely so. Will this problem last forever? No.
Yes, it may cause gas prices to rise, but that has nothing to do with oil prices. It is an obstacle in the processing/refining stage, not in the oil production/transporation stage.
Nothing different than if a refinery catches fire or shut down. A temporary hiccup in the price of gasoline that will self-correct. It is not something the Fed adds into their inflation equation to any great extent. If anything, they believe higher energy costs will help slow the economy, working in conjunction with their rates hikes.
I wish you wouldn't fixate on temporary fluctuations in the energy sector the way you do. As I told you in a PM, I think you may need to change your name to "oilsnow".
Regards,
Ron |
