Gas almost $7 a gallon

[Derec]

Watch: Fox News says falling fuel prices are bad for gas station owners

Fox News hosts complained on Monday's edition of America Reports that gas prices are declining too quickly, despite having sung with the chorus of conservatives across the country that has been demanding that President Joe Biden do everything in his power to ease the pain at the pump...

www.alternet.org

It really depends why the gas prices are dropping. As far as I know, nothing fundamental has changed on the supply side.
It is demand going down. That means less frequent pit stops for fuel and thus fewer people going in to buy slurpees and the like, which is where gas stations make most of their profits, as the profit margin on gas is slim.

 

[Jimmy Higgins]

Watch: Fox News says falling fuel prices are bad for gas station owners

Fox News hosts complained on Monday's edition of America Reports that gas prices are declining too quickly, despite having sung with the chorus of conservatives across the country that has been demanding that President Joe Biden do everything in his power to ease the pain at the pump...

www.alternet.org

It really depends why the gas prices are dropping. As far as I know, nothing fundamental has changed on the supply side.

You mean other than the price of oil dropped about 16% and gasoline is responding? Other than that supply side thing?

It is demand going down. That means less frequent pit stops for fuel and thus fewer people going in to buy slurpees and the like, which is where gas stations make most of their profits, as the profit margin on gas is slim.

OMFG!

 

[TV and credit cards]

Watch: Fox News says falling fuel prices are bad for gas station owners

Fox News hosts complained on Monday's edition of America Reports that gas prices are declining too quickly, despite having sung with the chorus of conservatives across the country that has been demanding that President Joe Biden do everything in his power to ease the pain at the pump...

www.alternet.org

It really depends why the gas prices are dropping. As far as I know, nothing fundamental has changed on the supply side.
It is demand going down. That means less frequent pit stops for fuel and thus fewer people going in to buy slurpees and the like, which is where gas stations make most of their profits, as the profit margin on gas is slim.

Interest rates rising cause recession fears to rise cause oil futures to drop.

 

[Jason Harvestdancer]

Gas prices have declined every day for the last 27 days.

Woo, first they went up $2, then they went down $0.25.

 

[Jason Harvestdancer]

But according to Zipr, this conservative lost an argument with Person A and blocked Person B as a result.

Are you seriously fighting for this hill?

I sometimes wonder if people don't occasionally start accounts that are incendiary and hold to obtuse and impossible-to-defend positions that they know are wrong because of some kind of humiliation fetish.

That would explain Zipr.

 

[ZiprHead]

That would explain Zipr.

Living rent free in your head, aren't I.

 

[Derec]

You mean other than the price of oil dropped about 16% and gasoline is responding? Other than that supply side thing?

The price of oil is a function of both supply and demand. Nothing fundamental has changed on the supply side, but demand has definitely dropped.

This Week in Petroleum
There should be another dot added tomorrow.

It is demand going down. That means less frequent pit stops for fuel and thus fewer people going in to buy slurpees and the like, which is where gas stations make most of their profits, as the profit margin on gas is slim.

OMFG!

What is your problem with what I wrote?

 

[Harry Bosch]

You mean other than the price of oil dropped about 16% and gasoline is responding? Other than that supply side thing?

The price of oil is a function of both supply and demand. Nothing fundamental has changed on the supply side, but demand has definitely dropped.

This Week in Petroleum
There should be another dot added tomorrow.

It is demand going down. That means less frequent pit stops for fuel and thus fewer people going in to buy slurpees and the like, which is where gas stations make most of their profits, as the profit margin on gas is slim.

OMFG!

What is your problem with what I wrote?

Why do you keep repeating that supply hasn't changed? It's up. Considerably. May 2022 was the second highest output of any may in US history.

 

[Jimmy Higgins]

Man, psychology is funny. Gas near to dropping below $4 and that seems like a good deal.

 

[Gospel]

Currently paying around $3.90 here in Orlando FL. I'd only consider that good if I forgot paying under $2 for most of my Florida man life.

 

[ZiprHead]

Gas here is $4 and mid teen cents. While my car was in the shop, I drove my wife to work in Midland. Gas was $4.03 there then. I'm sure it's under $4 now there.

 

[Harry Bosch]

Gas here is $4 and mid teen cents. While my car was in the shop, I drove my wife to work in Midland. Gas was $4.03 there then. I'm sure it's under $4 now there.

Dang that Biden must be doing a great job!

 

[Derec]

Why do you keep repeating that supply hasn't changed? It's up. Considerably. May 2022 was the second highest output of any may in US history.

Huh? What are you talking about? The point is what the supply was doing between June and July 2022, when the prices started dropping. I see no evidence of supplies increasing. But the demand went down quite a bit because of high prices, which is the reason why the prices have been going down recently.

 

[Derec]

Dang that Biden must be doing a great job!

Prices are still considerably higher than this time last year.

Even if Biden's MbS gambit succeeds, it will take some time before the Kingdom can actually deliver higher supplies.

 

[Harry Bosch]

Why do you keep repeating that supply hasn't changed? It's up. Considerably. May 2022 was the second highest output of any may in US history.

Huh? What are you talking about? The point is what the supply was doing between June and July 2022, when the prices started dropping. I see no evidence of supplies increasing. But the demand went down quite a bit because of high prices, which is the reason why the prices have been going down recently.

Derec: I've posted my sources many times. The problem is that you are getting your news from right wing sources which don't understand business. I'll give you a preview here, the price of oil is dependent upon the world market. Presidents have very little control over the price. Drilling went down under Trump; it's higher today. But it's because demand was lower during covid; it's higher today. See this link:

Gasoline Prices Up Due to Global Supply-Demand Issues, Russian Invasion of Ukraine - FactCheck.org

U.S. presidents have little control over the price that consumers pay for gasoline. It depends mostly on the price of crude oil, which is set on the global market, based largely on worldwide supply and demand. Yet Republican campaign ads have falsely claimed or suggested that President Joe Biden...

www.factcheck.org

In May 2020, Trump's administration was only able to generate 9,713 of oil. In May 2022, The great Biden generated 11,595! Yahoo, here's the data:

U.S. Field Production of Crude Oil (Thousand Barrels per Day)

www.eia.gov

Don't get too excited. The private sector is the group controlling oil production. And their goal is to maximize profit. Period.

 

[ZiprHead]

Gas here is $4 and mid teen cents. While my car was in the shop, I drove my wife to work in Midland. Gas was $4.03 there then. I'm sure it's under $4 now there.

Dang that Biden must be doing a great job!

I happen to think so.

 

[Harry Bosch]

Gas here is $4 and mid teen cents. While my car was in the shop, I drove my wife to work in Midland. Gas was $4.03 there then. I'm sure it's under $4 now there.

Dang that Biden must be doing a great job!

I happen to think so.

I'm just trying to make the point that the right believes that all bad things are caused by Biden; good things are just luck. For both sides, Presidents have far less power and influence that what is commonly thought. Having said that, yes I think that Biden is doing a good job. Better than average. 1,000 times greater than the Orange monster!

 

[TV and credit cards]

Why do you keep repeating that supply hasn't changed? It's up. Considerably. May 2022 was the second highest output of any may in US history.

Huh? What are you talking about? The point is what the supply was doing between June and July 2022, when the prices started dropping. I see no evidence of supplies increasing. But the demand went down quite a bit because of high prices, which is the reason why the prices have been going down recently.

Derec: I've posted my sources many times. The problem is that you are getting your news from right wing sources which don't understand business. I'll give you a preview here, the price of oil is dependent upon the world market. Presidents have very little control over the price. Drilling went down under Trump; it's higher today. But it's because demand was lower during covid; it's higher today. See this link:

Gasoline Prices Up Due to Global Supply-Demand Issues, Russian Invasion of Ukraine - FactCheck.org

U.S. presidents have little control over the price that consumers pay for gasoline. It depends mostly on the price of crude oil, which is set on the global market, based largely on worldwide supply and demand. Yet Republican campaign ads have falsely claimed or suggested that President Joe Biden...

www.factcheck.org

In May 2020, Trump's administration was only able to generate 9,713 of oil. In May 2022, The great Biden generated 11,595! Yahoo, here's the data:

U.S. Field Production of Crude Oil (Thousand Barrels per Day)

www.eia.gov

Don't get too excited. The private sector is the group controlling oil production. And their goal is to maximize profit. Period.

And maximize profit they have. Record profits.

 

[bilby]

The private sector is the group controlling oil production. And their goal is to maximize profit. Period.

Well, that's probably mostly true in the USA.

But the goal of oil producers in places like Saudi Arabia and Russia is likely geopolitical, rather than purely financial. Arab oil sheikhs have more money than they know what to do with; The amount of oil they pump is therefore often determined by factors other than maximising profit.

And as you point out, oil is a global commodity; US producers don't have much influence on total production, and therefore on price; And US presidents have even less.

/nitpick

 

[Derec]

But the goal of oil producers in places like Saudi Arabia and Russia is likely geopolitical, rather than purely financial. Arab oil sheikhs have more money than they know what to do with; The amount of oil they pump is therefore often determined by factors other than maximising profit.

Russia is more likely to use oil as geopolitical weapon these days. Saudis did so in the 70s with King Faisal's "oil sword", but these days they are all about trying to keep their population happy so they won't get overthrown. And that costs a lot of money, and is funded by oil profits.
However, they are willing to forego some short-term profits for more profits later. Like when they tried to cut out US shale producers by flooding the market a few years ago.

And as you point out, oil is a global commodity; US producers don't have much influence on total production, and therefore on price; And US presidents have even less.

US producers have as much influence as any other. When US increased production by 5Mbbl/d due to fracking, that is a sizeable portion of total worldwide supply and played a big role in keeping prices relatively low over the last decade.
Remember that 15 years ago or so, people were still talking about "Peak Oil" and how $200/bbl oil was on the horizon. Or much higher.
Here comes $500 oil