Oil Prices vs Gold Price

Self | jimjohn

[Paul R.]

Can you document that? "the Biden administration has quietly relaxed the restrictions on drilling for oil and natural gas." in a substantial way?

The political logic makes sense - Clintoon did it too.

[stateofit]

While I agree most OPEC or Non-OPEC produce as much as they can all of the time, SA and a few others have enough spare capacity and can swing prices +/- 30% overnight. Total control, no. But can greatly influence while keeping themselves roughly revenue neutral.

[Tell It Right]

Here's some reports on drilling being up: https://www.eenews.net/articles/what-bidens-oil-record-means-for-the-industrys-future/

Here's the media spin on why: https://www.pbs.org/newshour/politics/why-harris-is-promoting-domestic-oil-drilling-at-the-same-time-as-clean-energy-jobs

IMHO this is a reversal of what he did literally his first week in office issuing EO's to make it harder to drill for natural gas and oil: https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/20/executive-order-protecting-public-health-and-environment-and-restoring-science-to-tackle-climate-crisis/. Remember the price of gas spiking even before Putin invaded Ukraine (which the media blamed high gas prices on)? Bull crap like that is why I now have tons of solar and my house in now all-electric and one of our two cars is an EV (which we do almost all of our local driving in). Mine and the missus' retirement financial planning is simpler if our energy doesn't cost us as much because most of our energy is homemade.

[TheThirdRuffian]

Eh, I’ve worked a lot in Saudi. They do have spare production, but not a lot, and even less that is quick and economical.

There’s a literal giant underground front of encroaching salt water that they are managing well, but is a real problem.

If you want to look at the reason for price issues is the entire state of NM is effectively closed for new drilling.

[WASCWatch]

The economy is tanking, so demand for oil and gas is also going down. Lower demand = lower prices.

Gold is going up because buyers are fearful about inflation. Higher demand = higher prices.

It’s just that simple.

[Openurmind]

Sorry I missed this. I’m not completely sure why motor oil is so high. But I am going to guess it is because almost all of it is now synthetic and advertised as extended life lubricant. So marketing has a lot to do with it. I have noticed the standard natural petroleum motor oils are much cheaper than the synthetic oils. But I also noticed that when they jacked up the prices on synthetic they also jacked up natural oil prices. So there is a little gouging going on there too.