From the Boston Globe Business Team
Mass. gas prices rise for first time since Sept.
January 12, 2009 10:04 AM
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Massachusetts gas prices are on the rise for the first time since mid September, AAA Southern New England said.
In a survey out today, the average price for a gallon of self-serve, regular unleaded gas in Massachusetts was $1.699, up 7 cents from the average in the previous weekly Bay State survey, AAA Southern New England said.
The current Massachusetts price is 10 cents below the national average of $1.79, said AAA Southern New England, which added that this time a year ago, the average Massachusetts price was $3.05 per gallon.
(By Chris Reidy, Globe staff)
We know the price of gas has risen. The article fails to tell us why, with oil prices holding steady at around $40.00 a barrel.
Energy (along with every asset class) sold off during the deleveraging phase (which is still going on). Those that screamed demand destruction were/are wrong (traffic is as bad as ever). Sure, energy demand fell a bit, on the order of 5% or so. But a 5% drop in demand does not equate to a 70% drop in prices. Fact is, like most corrections, prices over corrected on the downside (same will happen with housing) and now prices are starting to rise again. Unless the global economy slips into a depression (which might happen) energy prices will recover sooner rather than later. As long as energy prices are low, the economies of the world will be mired in recession or low growth.
What I want to know is WHY are gas prices up? From what I hear, the price of oil is still falling, now down to about $38/barrel. What lame excuses to the gas companies have for us now???
The Globe has really dropped off in the QUALITY of their reporting.
5 W's people!
Who What Where When and Why?
According to 60 minutes oil prices were driven up by Wall street firms manipulating the market, gotta love that Bush deregulate everything so the Wall street firms can bleed us all dry. As soon as the government threatened to regulate the speculators jumped ship like the rats that they are. Prices have been falling ever since then.
and HOW
can't forget that.
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