Quote:
Originally Posted by nate2512
Yeah, but you're missing my point, when I'm in school I go through 26 gallons of gas every four days. While this is certainly not an average for most Americans, i don't know what is, but you get my drift that you use a lot more gas than you do milk. My point is that there are way more supplies for gasoline than there are for milk or most other products. The reason that oil prices are so high is because the demand in the global market is high. OPEC claims that they are producing enough oil to meet the worlds consumption, so there are only two ways to lower gas prices, simply use less, which is not a viable option as the demand for gas is very inelastic. The second is for OPEC to raise their daily output, which they have already said they aren't doing. And when gas goes up that makes everything else more expensive too. To compare gas to a consumer product such as milk is just flat out retarded.
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I agree but there is at least one other "choke point" which is production.
And just thought of another one which also has been in the news: distribution/transportation.
We all have heard by now of need for more production facilities and when ever one plant goes down for whatever reason, prices go up.
Just as when ever pipe line or tanker has a problem prices go up.
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