Over the past couple months, the price of oil has skyrocketed to an all time high of $111 per bbl today. This has caused many motorists to cry out in frustration and accuse oil companies of collusion. These ignoarnt accusations and hasty conclusions made by the general public are simply not true.
I have had a number of people say to me anumber of times, "how the oil companies are ripping everyone off". I then proceed to press them for an explanation, where they proclaim, "gas prices are so high they have to be". In my book, using rationale like that falls well short of conclusive proof.
I then proceed to to counter their arguments by explaining the recent record breaking prices of gold and platinum (perhaps the weakness of the dollar is an issue?), and that over 1,000 new cars are on the streets of Beijing everday (increase in Chinese and Indian oil demand?).
Then, out of frustration, these people proclaim that "the oil companies are all crooks". Little do they know, that they could very well be benefiting from the record profits ExxonMobil has been making. According to a recent article written by Ben Stein, 52% of outstanding XOM shares are owned by pension and mutual funds. These are commonly owned by common people.
My advice to those complaining about increasing gas prices, if you really think the price of oil will continue to climb (which it very well could), quit crying and go buy oil futures. If you think it's not fair that the oil companies are making so much money, quit crying and go buy energy, and last, but definately not least, do some homework on basic petroleum economics, and maybe you won't sound like an ignorant conspiracy theory spouting nut job.