Recessions and financial crises tend to allow step drops in oil prices.
It may be too late though to save us this Winter.
Oil prices fell from a high of $133.88 in June 2008 to a low of $39.09 in February 2009. 1 Over the same time period, natural gas prices fell from $12.69 to $4.52. 2 The lower price for oil and gas due to the financial crisis was the major impact on the sector.
Falling oil and gasoline prices in an election season sends a strong message to voters that the economy is failing.
So Biden’s recession may save the rats because the gas is going just in time for the mid terms.
Do not forget that Biden is dumping a million barrels per day from the Strategic Petroleum Reserve on the market.
Those SPR dumps have a major short term impact on oil prices.
Biden needs to keep dumping until Novemeber elections.
I believe part of this is driven by Big Banks. Their typical tricks include driving prices to force small investors to hit their stop losses. They go in one direction, accumulating contracts, stop the little guys out, and then send prices in the other direction. The volatility of petroleum prices is sending small investors, “speculators”, out of the market. Economic and other news is not fully responsible for price swings. It’s intention and unfortunately legal. Big Banks need to be prohibited from investing in equity and commodity markets.
That’s all good right. Gas prices are coming down and here in Illinois the gas tax was dropped until Jan 1 of 2023 so things are getting better...right?
The democrats and Biden will take credit in.... 3, 2, 1....