Is Biden Right About Oil Companies?

[whell]

Originally Posted by Chicks

After the Biden and Bezos war of words, gas prices really are coming back down to earth

https://finance.yahoo.com/news/biden...151129176.html



Sorry, Faux "News" (and MAGAMorons)! You won't have this issue to whine about just before the elections.

Patrick De Haan, an analyst with GasBuddy, said Wednesday he expects most stations will see drops of one to two cents per gallon every couple of days for the next two to three weeks, possibly longer. If “things do hold steady,” he says, “the national average could drop to $4-$4.25/gal by mid-August.”

I'm sure that $4.25/gallon gas will make everyone so very happy...until they remember it was under $2.00/gallon not long ago.

Seriously, any drop in gas prices between now and August will be demand-driven, not supply-driven. If the supply issues aren't addressed, we'll be right back here again next summer.

[bobabode]

Originally Posted by whell

Patrick De Haan, an analyst with GasBuddy, said Wednesday he expects most stations will see drops of one to two cents per gallon every couple of days for the next two to three weeks, possibly longer. If “things do hold steady,” he says, “the national average could drop to $4-$4.25/gal by mid-August.”

I'm sure that $4.25/gallon gas will make everyone so very happy...until they remember it was under $2.00/gallon not long ago.

Seriously, any drop in gas prices between now and August will be demand-driven, not supply-driven. If the supply issues aren't addressed, we'll be right back here again next summer.

Another example of this poster's penchant for blatant dishonesty, see bolded. Gas went sub $2.00 during the worst of the Covid pandemic. Everything was shuttered and people were staying home. Demand was in the gutter.

You are simply dishonest, Mike. smh

[finnbow]

Originally Posted by bobabode

Another example of this poster's penchant for blatant dishonesty, see bolded. Gas went sub $2.00 during the worst of the Covid pandemic. Everything was shuttered and people were staying home. Demand was in the gutter.

You are simply dishonest, Mike. smh

Moreover, he fails to attribute increases in gas prices to Trump demanding Saudi Arabia reduce production back in 2020.

Trump told Saudi Crown Prince Mohammed bin Salman that unless the Organization of the Petroleum Exporting Countries (OPEC) started cutting oil production, he would be powerless to stop lawmakers from passing legislation to withdraw U.S. troops from the kingdom, four sources familiar with the matter told Reuters.

The threat to upend a 75-year strategic alliance, which has not been previously reported, was central to the U.S. pressure campaign that led to a landmark global deal to slash oil supply as demand collapsed in the coronavirus pandemic.

[whell]

Originally Posted by finnbow

Moreover, he fails to attribute increases in gas prices to Trump demanding Saudi Arabia reduce production back in 2020.

Trump told Saudi Crown Prince Mohammed bin Salman that unless the Organization of the Petroleum Exporting Countries (OPEC) started cutting oil production, he would be powerless to stop lawmakers from passing legislation to withdraw U.S. troops from the kingdom, four sources familiar with the matter told Reuters.

The threat to upend a 75-year strategic alliance, which has not been previously reported, was central to the U.S. pressure campaign that led to a landmark global deal to slash oil supply as demand collapsed in the coronavirus pandemic.

I just saw this post. Gawd you're clueless.

That agreement was against the backdrop of the Saudi's starting an oil price war with Russia, and the US domestic oil industry was in the crossfire. In short, it was an effort to support US domestic oil production, not throttle it. It also got the Saudi's and Russians back to the negotiating table to end the price war.

[finnbow]

Originally Posted by whell

I just saw this post. Gawd you're clueless.

That agreement was against the backdrop of the Saudi's starting an oil price war with Russia, and the US domestic oil industry was in the crossfire. In short, it was an effort to support US domestic oil production, not throttle it. It also got the Saudi's and Russians back to the negotiating table to end the price war.

So, Trump's intervention in the energy market is a good thing even if the results are bad (increasing oil prices) while Biden's (e.g., opening up the Strategic Petroleum Reserve) are a bad thing even if the results are good (decreasing oil prices).

[whell]

Originally Posted by finnbow

So, Trump's intervention in the energy market is a good thing even if the results are bad (increasing oil prices) while Biden's (e.g., opening up the Strategic Petroleum Reserve) are a bad thing even if the results are good (decreasing oil prices).

If that's what you think, I can't help you.

Of course, it depends on the intervention, the goal, and if the intervention achieves to goal.

Biden's goal in releasing oil from the reserves was to have a near-term impact on gasoline prices. It had little to no impact on futures prices. Futures prices did take a dip in August, driven by reduced demand as China had another COVID lockdown. The fact that folks are driving less has helped bring down gas prices.

Back in April 2020 when Trump was involved in negotiations with Riyadh, there were days when the spot price of domestic crude was negative: producers were paying to have the product stored as they ran out of holding capacity, and crude was selling slower than it was being produced. That trend was threatening the domestic oil industry. A production pullback stabilized both domestic and global crude prices. So, yeah, that one worked.