Isn't raising the price of oil out of "fear" of a hurricane coming but not yet arrived price gouging? ?

Question

Lets examine this... Hurricane Gustav has the potential to hit oil drilling platforms in the gulf, but is still days away. Production has yet to stop, only the "warning" that it may hit has automatically increased the price of a barrel of oil at least $5. Does this really seem right?

Lets look at this from another stand point... If a known alcoholic is walking up to the entrance of a bar do you raise the price of beer simply because he has the potential of drinking alot? If you see an overwieght person walking up to the entrance of a buffet, do you raise this price too?

No, you do not.

I don't mean to offend in any way, I am just trying to put this into another perspective.

I just don't see this as a moral recourse simply out of fear? Oil investors are making more money from this increase, oil companies will recieve additional profits eventually from this... but the consumer will eventually pay more for a gallon gas... over a "fear" of something that may not happen.

This seems like price gouging the consumer. I may just be venting, but I as well as millions of Americans are fed up with record oil company profits at the expense of the consumer.

And please, I don't need a response frrom a bunch of Ivy league economists with their interpretations of economy explaining to me the workings of oil business, I know how it works. I am just wondering if others feel the same way about this situation??

Whew!! I step off my soapbox now. LoL Thanx!!

Answer 1

The flooding in the midwest caused the price of corn to go up. The threat of an early frost in the midwest is also causing the price of corn to go up. Is that price gouging?

Oil company profits are right in line with other corporations. Gasoline prices are right in line with the increases of other goods and services due to inflation.

Gasoline prices stay very stable and then they jump way up real fast. That gets our attention and riles us all up. Other goods go up a little at a time and we don't even notice.

I'm glad you made it down off the soapbox safely without twisting your ankle.

Answer 2

it is insurance.

Answer 3

My first thought is yes but I'm not sure how their shutdown works so they may justify it by time it takes to do that and get everyone back.

Answer 4

They said they have to remove the workers from the drilling rigs and platforms so production has stopped to enable this.  I don't know if its true or not.  That is the main reason they gave on the news.  Sounds fishy to raise the price before the hurricane hits land but well, I guess we should get used to it.  They lied before so I guess we are all suspicious. Good to vent , its healthy .  Let it all out.