Why exactly is the price of oil dropping whilst the price of gasoline at the pump is remaining high? Read the testimonials and information - it'll open your eyes up real wide! Also, there's more evidence coming in each day. Lynn Gomez, has received numerous comments testifying to the facts on the blog House of Fun http:// flycruisn.blogspot.com - with no spaces in url
One major component that separates gas price from oil price is the refining cost. Oil must be refined to become gasoline and the costs of operating refineries are directly tied to inflation. Inflation has been rising substantially dues in part to the rampant printing of money by the Federal Reserve. Evidently the refineries need to pass down to customers the ever increasing costs of the refinery process. Inflation feeds inflation.
Russia now needs oil at $110 a barrel to manage its finances. For Iraq, the number is $100. Even Saudi Arabia now needs oil to trade around $80 a barrel just to balance its budgets. The numbers are also high for Algeria, Qatar, and Oman. Only a decade ago Saudi Arabia was able to balance its budget with oil prices averaging around $25 a barrel.
So now it is in these countries' interest to keep oil prices high, which they do by curtailing supply in one way or the other. This is perhaps the most lasting impact of the year of global protest: High oil prices.
High oil price economic difficulties occur because high oil prices tend to lead to unemployment, and high unemployment tends to lead to higher government expenditures and lower government revenue. Because of these facts answers must be found quick.