Why are gas prices so high now?

[Ready]

Somebody make the connection for me.

 

[SOSTrooper]

Bush wants war.

 

[Eli]

http://forums.anandtech.com/messageview.cfm?catid=38&threadid=967709

 

[ManSnake]

Fear of war, Venezuelan oil strike.

 

[Ready]

yes i know it has something to do with iraq duh, but somebody make the connection for me.
How does a war that's yet to happen effect gas prices?

 

[crystal]

uncertainty and possibility of war cause companies are stockpile their supplies. It is just demand/supply are at work.

 

[Ready]

Who is doing most of the stockpilling right now?

 

[Turin39789]

because they can be

 

[thomsbrain]

gas is interesting because it is artifically so cheap. if they didn't have to worry about riots, they could charge whatever they damn well please. i read somewhere a 10% increase in price only results in 1% less demand. and it's pretty clear that people don't care how much they spend on gas because of the vehicles they buy and drive. people aren't going to stop driving unless it's like 10 bucks a gallon.

 

[nta]

People are talking about it being $5/gallon if this war doesn't go well and things escalate. Gotta dig out the out bicycle.

 

[illusion88]

Originally posted by: thomsbrain
gas is interesting because it is artifically so cheap. if they didn't have to worry about riots, they could charge whatever they damn well please. i read somewhere a 10% increase in price only results in 1% less demand. and it's pretty clear that people don't care how much they spend on gas because of the vehicles they buy and drive. people aren't going to stop driving unless it's like 10 bucks a gallon.

HA!
I guess im not like most people... I dont drive if its above 2.00 a gallon. Its 1.80 and Im already busting out the good ole bike again. God I love that thing.

 

[Ready]

....some of us might have to drive 90 miles to work ><

 

[DanTMWTMP]

Originally posted by: thomsbrain
gas is interesting because it is artifically so cheap. if they didn't have to worry about riots, they could charge whatever they damn well please. i read somewhere a 10% increase in price only results in 1% less demand. and it's pretty clear that people don't care how much they spend on gas because of the vehicles they buy and drive. people aren't going to stop driving unless it's like 10 bucks a gallon.

well...i'm sure that the demand goes down lower in a logarithmic scale as prices go up...