On Gas Prices

[danaeris]

So, the way I figure it, gas prices are currently being affected by the following factors:

1. inflation


2. The general price creep which has occurred over the last N decades


3. "unrest in the middle east" aka the war on Iraq


4. The devastation in New Orleans

Previous to the fourth factor, prices were hovering around $1 CAD/liter.

-Ignoring (4) for the moment, when/if the "unrest" rests, will the price drop at all?
-What does historical precedent tell us?
-If it does drop, by how much (ie. how much of that dollar is due to inflation and price creep, and how much is due to unrest, and how much of it will the oil companies hang keep even though the original cause is gone)?

Regarding (4):
-Has that particular increase peaked, or is it going to get worse? (we'll know soon!)
-How long will this particular factor remain in effect?
-How much will the price drop when it is no longer a factor? I'm sure oil companies will keep some of the increase Because They Can, but how much?

Oil sucks. We should run on chocolate! Then there would always be tasty chocolate-y goodness as well as fuel lying around. Yes!
Alternatively, consider Hamster power