Update: I thought for a moment I had been hallucinating earlier today when I noticed the price of gasoline had jumped 20 cents per gallon during the night. But nope. I saw it.
Then I noticed a competing convenience store chain had kept its prices the same as the day before, $2.79 per gallon of unleaded gasoline. Lo and behold, the two stations I noticed the big jump had rolled the price back to $2.79 during the day, and then dropped the per-gallon price a penny more by the end of the day.
Could there have been, shall we say, a gasoline pump trial balloon sent aloft this morning?
A mystery of economics has been made even more mysterious as of this very morning.
While completing an errand a few minutes ago, I noticed the price of regular unleaded gasoline jumped 20 cents per gallon overnight.
It’s still under $3, but it’s now at $2.99 at one local gasoline station. It’s a local chain, so I’m betting I’ll see a similar spike at other corner gasoline stations later this morning when I trudge off to work.
The mystery is this: I keep reading stories in the media about the plummeting price of crude oil and the accompanying decline of gasoline — which is a product of aforementioned crude oil. Then I witness this upward spike in prices here in West Texas, which supposedly is one of the centers of the domestic oil production boom that I thought was helping drive the price of energy down.
What in the world am I missing here?
I get the supply-and-demand drivers that fuel the economy.
News reports keep telling us that our supply is outstripping our demand. Production is up, demand is down. Thus, prices are supposed to come down. Isn’t that how capitalism works? It’s kind of basic.
Now the price of gasoline here in Amarillo, Texas, has shot back up — by a lot!
It’ll take some time for the price to trickle back down. That’s how it works. What jumps up quickly comes down at a snail’s pace.
I’ll be waiting and watching.