🚀 go-pugleaf

The recent run in unleaded gas is attributed to several factors. First, Opec
and non-Opec countries agreed to reduce production by nearly 2.5 million
barrels a day. Secondly, there is a typical increase this time of year due
to the so called "driving season. Thirdly, there have been several refinery
closures in California due to fires and ssscheduled maintenance. Moreover,
the hostilities  with Iraq haven't helped matters. (Iraq is currently the
second largest producer of oil in the world.) Fear of our bombs, disrupting
their pipline to Turkey, have helped push  prices up as well.

On the short run, this is bad for fuel prices. However,  at $16.00 a barrel
for oil we are still very much below the prices we had in the 1980's. In
recent years, Opec has not been the  major power it was during the 70's and
early 80's. Participating countries have been notorious for cheating on
their agreed level of production. When compliance numbers are released later
this month, I expect to hear a giant "woosh" in the oil market as prices
plunge back down.

The situation in California will take some time to correct. The refineries
won't be fully back into production until August or September, leaving them
with much higher gas through out the summer. The good news is that the
California situation has little effect on the rest of the country.