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Wednesday, March 5, 2008

Find Cheap Gas....HERE

The demand for fuel is high. The supply is limited.

There are some issues fairly unique to fuel prices. For example, risk premiums. Even though there hasn't been a successful, large-scale attack against petroleum producers, exporters, or refiners yet, the possibility of such an attack is still greater than it was ten years ago. Investors in companies who are at risk of such attacks demand greater profits to balance out the possibility that their revenue stream may be damaged by such an attack.
A second issue may be that gasoline refineries in the United States have a real or perceived bottleneck, which constricts supply and increases price. The degree of price control may have only been realized following Hurricane Katrina.




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