I have seen diesel prices stay relatively steady for over six months now.:usa Is it because the prez did a little grandstanding the other night the reason diesel just jumped .41 forty one cents a gallon ? I sure wish we could freeze the prices for at least 90 days at a crack !:Banghead
There's been a slight uptick in economic activity. Consumer demand has increased. But, increased demand is not the direct reason for the increase in price. When traders see an increase in demand, they buy futures and that is what causes the increase in price. IMO, the only people who should be buying commodities futures are people who can physically take delivery of it and have a place to store it. That would bring down prices to a normal supply and demand level.
I'll agree with the statement above ^ nicely put. Commodities isn't hard to figure out after a few economic courses, but I'm sure politics play into it a bit. Future supply is really what drives fuel pricing; when we (Americans) purchase more fuel, suppliers obviously replace what we use and generally buy extra so they can make a larger profit on it down the road (hopefully) - somebody has to pay for it. Aviation fuel isn't getting cheaper either; jet fuel and avgas (aviation fuel) is unbelievably expensive in major airports and it's variable to fuel age as well. Crazy to think a few suppliers with unimaginably deep pockets can essentially control the fuel market,