Who should you blame when gasoline prices increase again?

Blame both the Republican Congress and President Obama for agreeing to export US crude oil again after a forty year prohibition.

Gas prices will go up again as soon as US oil inventories go down. Within the first week after Congress approved US crude oil to be exported, the first tanker left port from the US to deliver a boatload of crude oil to Italy. The result will be the more US oil is exported, in time US consumers will pay higher prices for gasoline again.

US oil companies have been lobbying for a long while to export domestic drilled oil.  Their goal is for US oil inventories to fall so the price of oil will rise in the USA. Economists call this game supply and demand pricing. This Bill passed will increase profits for US oil companies, who need higher prices be paid by consumers for their oil in order to profit. Problem is they profit at the expense of US consumers.

King Solomon

Three thousand years ago, King Solomon wrote a proverb to describe this same game. He described how consumers then thought about people who used this same supply and demand tactic to profit by withholding or constraining supplies in order to demand higher prices.

People curse the one who hoards grain, but they pray God’s blessing on the one who is willing to sell. (Proverb 11:25)

In my Opinion

We should not be too surprised that our Congressional Representatives approved the Bill to  revoke the forty year ban on export domestic oil. We should all know by now the oil companies are big campaign contributors to politicians and this makes the politicians their lackies.

If this upsets you, do not curse the politicians, just remember their names in the  next election and do not vote for them..

My concern is not only about the price of oil rising again, it is also for the reasons I explained about how it will affect your children and grandchildren in the future. If you are interested, read this previous post. HERE.

Regards and goodwill blogging.

Source Link

http://www.wsj.com/articles/house-votes-to-lift-oil-export-ban-1444411778