[ResisTyr]

>>Gas prices will be up, I guess<<

But...I thought we are now “energy independent”??? Why should our gas prices be affected by a change in Saudi capacity?

[Kozak]

>>Gas prices will be up, I guess<<

But...I thought we are now “energy independent”??? Why should our gas prices be affected by a change in Saudi capacity?

Because oil is a commodity used all over the world.

Supply goes down, demand goes up, price goes up.

[null and void]

Why should our gas prices be affected by a change in Saudi capacity?

You own a storage tank in southern California. It has 500,000 gallons of gasoline.

You can truck that gas to 500 gas stations at, say, $2.50/gallon, or you can take it to the Chinese operated port of Long Beach, and load it on to a Shanghai bound tanker for $3.00/gal. That's a cool $250,000 for less effort.

Which would you do?

Now there are 500 gas stations that still need gas, they wanted to pay $2.50/gal, but the world shortage has made the price to beat $3.00/gal.

They must have gas to stay in business so they have to pay $3.00, they still have to turn a profit to stay in business, so they have to raise the pump price to cover the higher wholesale price.