Oil Prices Explode Upward
Here’s the REAL Reason – Oil prices are hitting new highs every day despite the fact that demand for gasoline is plummeting in Europe and North America. The reason for this is that Asian demand remains explosively high due to the fact that Asian nations continue to subsidize prices at the pump, meaning that consumers pay less than market value for gas and demand remains high. And guess where your rebate checks are going?
While in recent months subsidies have been reduced, they are still high enough to protect demand. By March 2008, India, for example, had paid $12.7 billion over a year to keep fuel costs to the consumer low, and the huge subsidies continue. In contrast, fuel has been rationed in China, but subsidies have returned for the Olympic year. read more