08-17-07
I asked "Insider" about some reports that gasoline supplies nationally were easing backward, and gasoline imports in particular are way down–wondering about the effect on pump prices. He sees refinery managers working hard to bring down supplies so the price can bounce back upward.
"The retail price is still falling, as we’re all aware. Consumers cut back consumption due to the record price spike this spring and inventories returned to normal.
"Now, in response to the falling prices, the oil companies controlling refineries in the US are diverting or cutting off supplies of gasoline that was being imported from other refineries these companies own, mainly in Europe.
"Once the supply tightens again in the US, up will go the price again. The refinery managers are playing the old supply and demand game like a violin."
Of course, the teetering world markets could trump all predictions. But pump prices are already up a few cents a gallon across the Midwest, according to the AAA fuel gauge.