Thursday, March 1, 2012

You can have your low gas prices, or you can have a nuclear Iran

It's not quite so dire as that, probably, but with Republican candidates hitting President Obama so hard on the price of gas, it's worth noting some of the factors that are driving that price up:
The Iran situation has already raised the price of crude oil as much as 20 percent, according to oil experts.

That fear is tempered by optimism — if tensions ease in the Middle East, experts predict that energy prices will fall, with gasoline at the pump potentially dropping 50 cents a gallon or more because supplies are relatively strong in many parts of the country. Some analysts say the world price of oil could fall to $80 a barrel if tensions eased.
So gas prices are at least partly the result of America's tough anti-nuke sanctions against Iran. What else?
Despite a fall in gasoline demand in the United States and Europe, global oil markets are tightening because demand for energy from Asian countries, particularly China and India, is rising at surprisingly strong rates even as output is declining from several important producing countries.
So: Gas prices are rising because of the law and supply and demand. Capitalism is doing its thing!

A cynic would suggest Republicans should be portrayed as soft on Iran and anti-markets to boot, if they continue to demagogue the gasoline issue. I'd hate to be that sort of cynic.

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