Posted on 07/26/2021 1:10:11 PM PDT by SaxxonWoods
As was very clearly demonstrated under the government of former President Donald Trump – but pertains to all U.S. presidencies of recent years – the top person in the White House does not, in general, want oil prices on the higher side. The economic reason for this is that for every US$0.01 that the U.S.’s national average price of gasoline rises, more than US$1 billion per year in discretionary additional consumer spending is estimated to be lost.
(Excerpt) Read more at oilprice.com ...
Gas prices in my area have been stuck at $2.99 for weeks. It’s a psychological barrier. There’s no question they have total control.
>>– the top person in the White House does not, in general, want oil prices on the higher side.
Baraq Hussein Ubama said he was okay with $4 a gallon gasoline.
Oil stocks will do great at 70 dollars a barrel....
>>– the top person in the White House does not, IN GENERAL, want oil prices on the higher side.
“Baraq Hussein Ubama said he was okay with $4 a gallon gasoline.”
Notice what I capitalized above.
We broke $3 about 2 weeks ago in Ohio.
“Oil stocks will do great at 70 dollars a barrel....”
Yes, almost all American companies are profitable around $55.
If prices go to $80 and stay there, American investment and production will rise quickly. Right now, companies are not investing or attempting to produce new sources much, they are giving profits to shareholders, which is why they have been so popular since their great crash, which lasted about 8 weeks.
I had always heard $75 was the sweet spot. They can still make money in the Permian in the upper $20’s tho.
“I thought some had to do with the profitability of fracking for oil prices above a certain threshold.”
Almost all frackers are profitable at $55.
Or he can just threaten the oil companies and based on crude prices I think that’s exactly what he’s doing!
It’s much more mundane that that, but yes, the last Democrat president friendly with the energy industry was LBJ.
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