Quote:The Energy Information Agency has finally updated “on road” diesel prices after a month of frozen data [SEE HERE]. Conspicuously, the technical “glitch” correction is resolved [statement here] as the price for diesel starts to drop a little.

Oil prices are showing a drop in price, and subsequently gasoline prices are starting to moderate. Unfortunately, as noted at The Hill, the drop in price is not related to an increase in production, but rather a decline in consumer demand.

WASHINGTON – The price of U.S. crude oil was hovering around $98 per barrel on Wednesday afternoon, down from about $108 late last week. Brent crude fell to about $101 per barrel, down from about $111 late last week.

[…] “We’re on the cusp of seeing more savings,” said Patrick De Haan, head of petroleum analysis at gas price tracking site GasBuddy. “I’m trying to be a little bit optimistic here that this relief could make its entire way to the pump in the weeks ahead.”

[…] “The average price per gallon could fall 40 to 65 cents over the coming weeks,” he said, adding that the drop could be over a three- to six-week period.


“Stations are getting lower prices already,” he added. “Prices could go down a penny or two every day or two for the next six weeks as long as nothing changes.”

Experts say the decline is a double-edged sword, since the cheaper price isn’t due to any real changes on the supply side but rather to consumers scaling back their expenses and pulling down the expectation of demand. (read more)

With factory demand dropping precipitously, claims for unemployment starting to increase, consumers being squeezed by continued inflation in energy, gasoline, food and housing, we would expect to see a drop in oil prices for all the wrong reasons. Supply is not increasing, consumers are cutting back on all activities, including driving. A recession always leads to lower oil prices.

This information comes on the heels of Reuters publishing an explosive article about oil from the Strategic Oil Reserve being released and sold to foreign countries rather than used for refineries in the United States.

(Reuters) – More than 5 million barrels of oil that were part of a historic U.S. emergency reserves release to lower domestic fuel prices were exported to Europe and Asia last month, according to data and sources, even as U.S. gasoline and diesel prices hit record highs. (read more)

Link

That was the plan all along. Make it so painful that people won’t want to drive. Green New Deal down our throats and up our backdoors.

The interest rate hikes are helping to further drive what is otherwise happening "organically" in the economy when prices get too high. The demand side is reacting. As pointed out in the article, now is the time to fix the supply side in order to bring balance back to the markets.

ETA - originally had a statement about supply side economics but tbh that's a misleading label that refers to lower taxes and lower BARRIERS to trade. The former part of "supply side economics" is good for allowing the economic pie to grow; however, we are seeing that the lower barriers to trade was not the right move if we allow countries like China grow into future powerful enemies. My supply side comments are literally about the supply side of the supply/demand curves of traditional economic theory.

If oil prices do drop, it's primarily due to fear of recession.

(07-08-2022 07:47 AM)VA49er Wrote:  If oil prices do drop, it's primarily due to fear of recession.

That and about a hundred other things around the globe.

Don't forget Tom....

Biden has nothing to do with the run up; therefore he has nothing to do with this.

(07-08-2022 07:59 AM)Eldonabe Wrote:  Don't forget Tom....

Biden has nothing to do with the run up; therefore he has nothing to do with this.

Dude, knock it the **** off. I've said numerous times that yes Biden's policies have contributed to the rise in energy costs. But what I won't do, is lie like the rest of you and act like they alone doubled the price we pay at the pump.

(07-08-2022 07:53 AM)Redwingtom Wrote:  

(07-08-2022 07:47 AM)VA49er Wrote:  If oil prices do drop, it's primarily due to fear of recession.

That and about a hundred other things around the globe.

No, as of right now, that is the MAIN thing impacting any decrease in oil prices, it just makes logical sense and follows historical precedent.

(07-08-2022 08:23 AM)Redwingtom Wrote:  

(07-08-2022 07:59 AM)Eldonabe Wrote:  Don't forget Tom....

Biden has nothing to do with the run up; therefore he has nothing to do with this.

Dude, knock it the **** off. I've said numerous times that yes Biden's policies have contributed to the rise in energy costs. But what I won't do, is lie like the rest of you and act like they alone doubled the price we pay at the pump.

lulz Tom

(07-08-2022 08:23 AM)Redwingtom Wrote:  

(07-08-2022 07:59 AM)Eldonabe Wrote:  Don't forget Tom....

Biden has nothing to do with the run up; therefore he has nothing to do with this.

Dude, knock it the **** off. I've said numerous times that yes Biden's policies have contributed to the rise in energy costs. But what I won't do, is lie like the rest of you and act like they alone doubled the price we pay at the pump.

That's weird there is a whole 9 page thread (Gas Prices dropping) which you contributed many times to where at no point did you allude to his policies affecting anything regarding priced being influenced.

However you did mention many times that nothing Biden does affects prices.....



What is quite funny and ironic is that you are mostly correct in the physical sense. Biden cannot just turn a faucet on / off and affect energy prices. What he can and has influenced however, is public perception which affects peoples attitudes and sentiment. Consumer sentiment drives the economy a hell of a lot more that the professionals will openly admit. That is exactly why economists will oversell positive news and rarely get out ahead (publicly) of negative news.

EXAMPLE:
Anyone with half a brain could see back in late summer that inflation was not "transitory". It took almost 5 months before the Fed would admit as much. Anyone with half a brain knew Putin was merely icing on the cake, not the cause.

(07-08-2022 08:23 AM)Redwingtom Wrote:  

(07-08-2022 07:59 AM)Eldonabe Wrote:  Don't forget Tom....

Biden has nothing to do with the run up; therefore he has nothing to do with this.

Dude, knock it the **** off. I've said numerous times that yes Biden's policies have contributed to the rise in energy costs. But what I won't do, is lie like the rest of you and act like they alone doubled the price we pay at the pump.

And just as a follow up - NOBODY here is blaming the doubling of prices entirely on Biden. But Biden is NOT DOING ANYTHING that will really fight it either. THAT is what everyone is pissed about.

(07-08-2022 09:36 AM)Eldonabe Wrote:  

(07-08-2022 08:23 AM)Redwingtom Wrote:  

(07-08-2022 07:59 AM)Eldonabe Wrote:  Don't forget Tom....

Biden has nothing to do with the run up; therefore he has nothing to do with this.

Dude, knock it the **** off. I've said numerous times that yes Biden's policies have contributed to the rise in energy costs. But what I won't do, is lie like the rest of you and act like they alone doubled the price we pay at the pump.

That's weird there is a whole 9 page thread (Gas Prices dropping) which you contributed many times to where at no point did you allude to his policies affecting anything regarding priced being influenced.

However you did mention many times that nothing Biden does affects prices.....



What is quite funny and ironic is that you are mostly correct in the physical sense. Biden cannot just turn a faucet on / off and affect energy prices. What he can and has influenced however, is public perception which affects peoples attitudes and sentiment. Consumer sentiment drives the economy a hell of a lot more that the professionals will openly admit. That is exactly why economists will oversell positive news and rarely get out ahead (publicly) of negative news.

EXAMPLE:
Anyone with half a brain could see back in late summer that inflation was not "transitory". It took almost 5 months before the Fed would admit as much. Anyone with half a brain knew Putin was merely icing on the cake, not the cause.

I don't recall every post, but I'm pretty sure you're taking what I said completely out of context.

But you can always cite a direct quote...

(07-08-2022 09:39 AM)Eldonabe Wrote:  And just as a follow up - NOBODY here is blaming the doubling of prices entirely on Biden.

Son...son...you're missing some things. While they might not directly say that, there's more than one poster implying EXACTLY that.

(07-08-2022 10:01 AM)Redwingtom Wrote:  

(07-08-2022 09:39 AM)Eldonabe Wrote:  And just as a follow up - NOBODY here is blaming the doubling of prices entirely on Biden.

Son...son...you're missing some things. While they might not directly say that, there's more than one poster implying EXACTLY that.

There is that pesky weasel-word Implying.... you use those often to get yourself out of a direct position.....


Implying "I think you are a closet Trump lover" versus actually just calling "you are a closet Trump lover" in plain English, leaves room for interpretation and wiggle room to get out of a corner.

Son........

That's Bull Schiff! Biden did this through his changes.

The fact that because no one can afford gasoline except to drive to work is a example of bringing down prices. He actually is doing a good job...of screwing over the American worker.

LOL You probably thought I was defending the senile old fool, didn't ya?