I’ve heard that OPEC finally reduced production to drive up prices. They were pumping a lot to drive down prices to bankrupt our producers. I guess they believe Slow Joe will do that for them.
That’s a good part of it. When COVID hit demand for oil dropped like a rock sending prices to the bottom. US production isn’t profitable below about $45 a barrel so fracking and other methods come to a halt. OPEC takes advantage of that by pumping extra to keep prices low in order to bankrupt US producers. We’ve lost a lot of domestic production capacity over the last year and that can’t just be turned back on. Now that the US oil industry is on its knees and we’re more reliant on foreign oil they’re ramping up the prices. Biden certainly isn’t going to do anything to help, it’s almost guaranteed he’s got ol Hunter out there right now collecting his “consulting fees”.
Don’t expect it to get better anytime soon. Oil prices are going to get higher and we’re going to get hammered with inflation too so it’ll be a double edged sword.