The price of oil is determined by the Stock Market. I know…I trade oil daily. Oil goes up and down based upon the “perceived” worldwide supply and demand.

Why has oil price gone up so quickly? Because of the American voter. 30+ years ago, the Middle East held the world hostage by withholding oil. That, along with increased world demand, creates an undersupply relative to demand. Supply is lacking because the world, especially the U.S. has not done anything about that crisis. There have been very few, if any, advancements in fuels. We even stopped drilling for oil, building refineries, and stopped building nuclear plants. Now, one can argue the reasons for these to occur, but it comes down to the (at least for the U.S.) American public allowing our leaders to not have an energy policy.

Yes, oil companies will pay billions in taxes this year, but guess where that comes from – the American consumer. It’s another way for the government to get additional revenues without raising taxes (officially).

Some say that we should get used to high gas prices because the UK pays even more than us. That’s because the UK doesn’t have all the other taxes we have here in the U.S. and that shortfall is made through their gasoline prices.

Energy is the lifeblood of a country. And when it is relatively more expensive (percentile of commodities), everything else will eventually soar in price.

It’s a numbers and money game and the only way to beat it is for us voters to voice our opinions. Or, do as I do…invest some, and it doesn’t take much, money in oil – that’s what the airlines do to hedge rising oil prices.

Source wsj.com

(These tips don’t matter, I’m losing 4 MPG to the 10% ethonal mix).

(These tips are like trying to squeeze the last sliver out of your toothpaste).