Diesel prices according to Wall Street Journal

[SBall]

Today’s (Wednesday 5/25/05), Wall Street Journal has an interesting article regarding the high price of diesel fuel. It’s very interesting reading and it confirms the posture where for the first time, the United States is actually exporting diesel fuel to Europe to address the growing demand for diesel fuel there. According to the article, we’re exporting diesel fuel DESPITE the fact that US diesel fuel inventories are falling due to our own increasing demand, a demand up 6. 6% last year, while our gasoline demand last year grew only 1. 4%. Perhaps there’s an economist in the group that can explain that to me!! It seems to support the theory that our administration is doing everything it can to endorse an economy with a thirst for gasoline, and big-three manufacturers that provide vehicles that use it. The article goes on to say that the high diesel prices are not expected to ease anytime soon, especially with our 2006 low sulfur mandates. Grab the article if you can as it is a very informative read.

 

[klenger]

I guess I fail to see the connection with "the administration" with regards to selling diesel to europe. I doubt very much the the gov't is selling fuel to europe. It's the oil companies that are selling it. It's a free market and good business to selll to the highest bidder. We may not like it, but that's what capitalism is all about, even when it hurts us.

 

[nps]

Perhaps our diesel exports are shipments against contractual deliveries that were in place before US consumption went on the rise.



If we could get all those powerstrokes and duramaxes off the roads, then demand would fall and take prices along with it. So blame the inefficient V8 diesel owners, not the administration.



After all, the only thing the admin can really do is shut down shipments, which would have a chilling effect on the economy overall (ours and Europe). Remember Nixon's wage and price freeze? See how successful the socialist experiment was in the eastern bloc? Anytime the govt gets into free market trade, things go wrong.

 

[MacHaggis]

Their money is worth more than ours right now. Just the producers doing their part for their shareholders, the bottom line, and the trade deficit.

 

[Silver Bullet Ram]

I know I am really getting tired of this. I am tired of making them rich and making myself poor. Its coming down to the haves and the have nots. The working middle class it become poorer. I don't drive the truck very much anymore, too costly to drive not to mention too much to insure and this or that is always breaking. I have been thinking of selling it.



Gary