Heavy Lifting - thoughts and web finds by an economist
|I also contribute to Division of Labour||Load HL's Front Page|
Friday, June 01, 2007
From this week's ProfessorJournal.com:
"With gasoline prices topping an average of $3.20 a gallon nationwide, OPEC officials say they see no reason to open their oil spigots wider. OPEC's new attitude reflects a tug of war in the global oil patch over how the profits from a barrel of oil are divvied up between the world's producers, which develop oil deposits and pump oil, and its refiners, which process it into fuels like gasoline. In recent years, the balance in the world's oil-supply system has shifted, giving the refining industry more power and more profit." The reason for the shift is a change in the refining industry: a movement to producing at capacity. The result of production approaching capacity, combined with a price inelastic demand for gasoline, is a rapid increase in the market price of gasoline. Refiners, however, counter that OPEC has played a big role in pushing up gasoline prices.
Comments: Post a Comment
Le Chai - galerie du vin
Posts that contain Craig Depken per day for the last 90 days.
Heavy Lifting's Main Page
Money I Found Today
Heavy Lifting - Firehose style (56k warning)
- Microeconomics quiz of the week
Modified maystar design
powered by blogger