Friday, July 1, 2011

Meta about Kunstler's blog and gas prices

When I promoted Gas prices drop for a second week in Metro Detroit on Kunstler's blog this past Monday, I made the following editorial note.
I figured that you would write about President Obama, along with the rest of the International Energy Agency, releasing oil from their reserves. If I had written a Karnak predicts post, both of those topics would have been in it, but I didn't. However, I did write about that topic and predicted that you'd have something snarky to say about it, and I was right. Unfortunately, I buried the lede and made the title about falling gas prices in Detroit, when the story really was about Obama trying to stimulate the economy to help his re-election while at the same time kicking the oil companies and commodities speculators while the price goes down. So far, it's working.
It worked until the day before yesterday, when the price for West Texas Intermediate went up $5/barrel. As a consequence, unleaded regular at the corner gas station rose from $3.49 to $3.58 when I filled up my car to beat the price rise. I thought I hadn't. It turned out that I did. Yesterday morning, it rocketed up to $3.85. By that evening, it had dropped back to $3.79. Crude oil prices also fell that day. Can you say overshoot? I knew you could.

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