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There was a price war between Saudi and Russia last year just as global demand began to plummet due to Covid. . Saudi increased production to force Russia to behave.
Since late Summer the Saudis have been cutting production and last week, announced intentions to further cut production during the first quarter to protect their market.
70%+/- of US consumption is at the pump. The increasing electrification of global road transportation will, over time, substantially reduce demand.
Electric passenger vehicles are about 3% of the global market, right now. This is projected to grow to 10% in 2025, 28% in 2030 and 58% by 2040.
Hopefully, the US companies start producing more to make up for Saudi's cut. If so, this should balance the market again. As long as Biden stays away from the extreme left of his party, we can keep prices in check at least. I am not confident he will do that.
You and the left can spin it all you want. However The truth is markets are anticipating with China Joe and the global warming lunatics in charge there’s going to be war on fossil fuels!
The markets are not.
Supply and demand is a simple concept.
But please... continue with the willful ignorance.
But please... continue with the willful ignorance.
There are no free markets and supply and demand are controlled by politics. The market knows China Joe and the Dems want to restrict production and delivery of oil and are investing accordingly - raising prices -as we knew they would. Every consumer is going to bear the cost of the folly of the Dems, including paying more in taxes for unemployment insurance as they work to destroy the oil sector and devalue the dollar. That is their stated plan in their attempt to weaken America.
Gas has increased where I live by 20 cents a gallon, thank you Joe
Here's where expanding your source for news might help.
https://www.robesonian.com/news/1415...reeping-higher Gas prices increasing in the USA is not tied to any Biden policy.Supply and demand factors have helped crude oil prices rise “steadily throughout December and the first week of January,” according to U.S. Energy Information Administration.
https://www.kiplinger.com/economic-forecasts/energy Oil prices are slowly grinding higher on hopes that the COVID-19 vaccines starting to roll out now will allow economic activity to gradually return to normal next year. Benchmark West Texas Intermediate has worked its way up to $47 per barrel, after trading near or below $40 for much of the autumn. We see WTI closing in on $50 per barrel this winter, unless new virus-related restrictions on businesses and travel cause oil demand to take another big hit.
Here's where expanding your source for news might help.
https://www.robesonian.com/news/1415...reeping-higher Gas prices increasing in the USA is not tied to any Biden policy.Supply and demand factors have helped crude oil prices rise “steadily throughout December and the first week of January,” according to U.S. Energy Information Administration.
https://www.kiplinger.com/economic-forecasts/energy Oil prices are slowly grinding higher on hopes that the COVID-19 vaccines starting to roll out now will allow economic activity to gradually return to normal next year. Benchmark West Texas Intermediate has worked its way up to $47 per barrel, after trading near or below $40 for much of the autumn. We see WTI closing in on $50 per barrel this winter, unless new virus-related restrictions on businesses and travel cause oil demand to take another big hit.
”Expanding your source” just means getting biased news.
When gas and other oil products are low, it means a large industry in the US is shutting down and laying off employees (energy industry - think oil shale refining). When gas prices are low, it is also a common sign that the economy is doing poorly. Less goods are being moved. Consumers are using this fuel because they are traveling less - both in the tourist sense and in the everyday shopping sense. It also might mean less Americans are going to work. All of these are bad for the economy.
However, when gas prices are low it usually means those with less income, where gas prices play a bigger role in their budget, have more money to spend on consumer goods. And it also feels nice when filling up your tank is $20-$30 as opposed to $40-$50.
In my opinion, low gas prices are good for Americans that not feeling the sting from the economy slowing down and using less oil. But, from a macro-economics standpoint, higher gas prices probably means more Americans are employed with more money to spend.
It is possible to have both though. But, in order to have both low gas prices AND a good economy, there's a delicate balance. Prices have to stay high enough to keep the oil industry in America profitable but not so high as to drive down spending in other business sectors.
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