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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: SilentZ who wrote (237878)	6/18/2005 4:37:32 PM
From: tejek	Respond to of 1578900

How much of the price of gas really reflects the cost of pumping it out of the earth? And how much of it reflects demand, speculation, taxes, and OPEC's control of supply? Not sure, but over the last two years, I think speculation has taken a larger share than in the past. I think there is some speculation in the price of crude but I don't think its as significant a factor as once believed. Yesterday, crude closed at $59.....maybe one percent off its high for the year. This is during a 'shoulder month' just before summer........the time when there is the least demand. Crude should be near its 52 week low, not its high. Production of crude just isn't there to meet demand whether its because of Iraq's production problems, or because OPEC and/or other oil producing countries are holding back. And if its because they can't increase production and supply and demand are in equilibrium, then the world and the US are in for a world of hurt. ted