I thought there was a pricing disparity; it wasn’t my imagination:
Despite the nearly 10% drop in the price of oil during the past week, the national average price of a gallon of gasoline has actually gone up $.03. That seems pretty fair, right?
The price of oil briefly fell below $55 during Friday’s trading session before rallying to close at $56.31. Despite closing higher, the price of oil fell over 8% for the week – the single largest weekly drop in oil prices since early in 2005.
Unfortunately, the decline of the price of oil didn’t carry over to the national average price of gasoline, which actually has increased three cents during the past three weeks.
Funny how gasoline prices always trail oil price drops much slower than price increases. Or maybe it isn’t.
Speaking of oil, there’s been some discussion regarding this report regarding a proposed deal allowing Western oil companies to cash in on Iraqi oil fields. Jerome a Paris writes that this law, if ever implemented, would be a reasonable business arrangement. But, he adds, the country is far too unstable for outside oil companies to risk investment.
I can’t argue with the last point.