Oil prices rise 30% since mid June (isn't the summer driving season over?)

Economy
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Oil prices rise 30% since mid June

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Meanwhile more than half the Petroleum reserve has been drawn down.
It is now at its lowest level in 40 years.

Last October, the Biden Administration announced a plan to begin refilling the reserve when oil dropped to $70 . . . but failed to act on it (Okay well, thy did replace 2% of what they took out.)
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Add in the recent deployment of forces to the Persian Gulf in response to IRGC activity targeting tankers.

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The Saudi’s voluntarily cut their production by 8% and have extended the cut until at least December.

They seldom state explicitly why they do such things but they

  • have a beef with Biden for draining the SPR and then reneging on his promise to refill it
  • have a beef with the US Fed for lack of clarity and wild swings in interest rate policy.

Most TV analysts seem to be speculating that is the root cause of their decision, but who knows for sure?

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I expect another rate hike and then a global economic slowing.

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The left really did a bang up job in Making America Last Again. :rofl:

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Libs could do lot more to drive up the cost…but they’re going to wait until after 2024 election. Than they’re planing on screwing American working families over big time.

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Exactly!!

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Even CNBC is admitting that Biden can’t release large amounts of oil from the SPR, which makes the US dependent on decisions in Saudi Arabia.

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september seems so long ago……

oil prices are plummetting.

so whats the reason @Gaius

Allan

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2.09 wholesale.

Allan

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Do you mean why ae gasoline prices (finally) normalizing?
I still haven’t figured out why we had the odd increase October.

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One expects both oil & gas prices to be high in summer.

Anyway,

  • nearly all commodities are down at the moment.
    (Gold is up and sugar is up but those are exceptions.)

  • Gasoline is 10% ethanol (from corn) and corn prices have dropped ~30% in recent months.

  • Winter blend gasoline is 10% butane (from natural gas, which is always cheap but fell 50% since January

  • although the dollar is down against most currencies in recent months it is up against the Canadian dollar (we import twice as much oil from Canada as from any other country.

I hope this helps your research. Let me know what you find.

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Ok who told??

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Now if only DIESEL prices would show any sign of lowering. :rofl:

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What?
What’s wrong with $4.294/gal?

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Remember back in the day when Diesel and Gasoline prices fluctuated together? :wink:

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