That is nice, maybe gasoline prices will fall here. Won’t in China. Which is why the price of oil fell here.
Light, sweet crude for July delivery fell $4.75 to settle at $131.93 a barrel on the New York Mercantile Exchange.
China disclosed that it will raise prices for gasoline and diesel fuel 16 percent and 18 percent, respectively, beginning Friday.
Guessing the Chinese government controls the supply and can set prices. Whopping big increase too. That’ll cut demand.
There’s a danger when government controls the industry, they can set the prices and there’s nothing you can do about it.
Had a couple more thoughts after watching the news. Updated post accordingly. There’s another danger too inherent in governments controlling the oil industry. That being using that oil to strongarm other countries to do their will.
President Hugo Chavez threatened Thursday to shut off oil exports to European countries that enforce tough new EU rules on illegal immigrants.
“Our petroleum should not go to these European countries” that apply the new laws, Chavez said at a press conference here.
He who has the oil wields power to change the laws to suit his interests. Laws elsewhere even. Better not try that here, nationalizing oil that is. And don’t think it hasn’t been thought of either. It has.
A Democratic lawmaker stepped off the idea of nationalizing oil refineries, telling FOX News on Thursday he only means to put “national pressure” on oil companies – a day after he endorsed the idea of government refinery ownership.
Wait til 2009 and see if they resurrect this idea. It will happen. It’s a Socialist’s dream.
