Gas Prices

The oil companies say it is all about supply and demand. That would be true, if all the suppliers were also capitalism based economies. Instead the world oil markets are dominated by OPEC, Russia and other countries that have government controlled constraints to free markets. In other words, in the commodity markets demand outstrips supply because foreign governments are withholding oil to create a higher market price for crude oil. This is not capitalism its highway robbery that diverts additional capital to tyrants and despot (not all oil exporting countries are like this take Canada that is benign), but enough of them are to effect the supply and create a demand. In addition these tyrannical governments are unstable which adds fear to the markets and further stimulates higher pricing. In stocks fear means selling in oil it means buying. And for all of us in America wondering how oil affects us outside of our cars think of all the home products produces using crude oil, from roofing shingles to plastic to the trucks delivering food and homes heated with oil.