Monday, July 18, 2005

Market effects not kicking in on Energy Prices

Apparently, demand for gasoline is not as elastic as many suppose...

Crude oil prices rose Sunday as Mexico shut down offshore oil fields in fear of Hurricane Emily. Anxiety about more severe storms could drive crude prices beyond the $60-a-barrel mark.

That's $10 higher than last month, which translates into a 25-cent jump at the pump. Yet, if drivers shop around, they could purchase gas for as low as $2.41 a gallon in San Jose.

There are several reasons drivers fail to get the lowest price: convenience, location, brand loyalty -- and it has been just too darn hot to be messing around in search of cheaper gas.