Buildup of inventories.
Originally Posted by camelotkid
So if gas companys know people are dependent on gas to go places, and they know that people will still buy gas at the current price, even if they increased supply what incentive would they have to then lower the price?
They have only so much storage space for a momentum driven process production. If prices are too high and product sales slow, they drop prices.
It's called market forces. Supply and demand. A basic fact of market economies.
Only thing I had against Romney. When bongo started snarking about "big oil", Romney should have explained that big oil isn't the cigar chomping billionaire you see in the monopoly game, wallowing in rooms filled with cash like he's scrooge mcduck or something, but that oil companies are publicly held, stock issuing entities that pay dividends to the guy on the street who probably has Exxon stock or Chevron stock in IRA or 401k.
WE are big oil. Anyone ever look in their retirement mutual fund to see what the holdings are?
That's right, YOU are big oil. A little chunk at a time. Them billions are paid out in dimes by the share to a lot of little people on main street.