Posted on 08/08/2022 9:42:18 AM PDT by SeekAndFind
“Right now, a family in America with two cars is saving $100 a month on gas compared to peak prices. That’s breathing room. And we’re not letting up any time soon.” -- President Joe Biden, taking credit for the recent dip in gasoline prices nationwide
Did Biden’s strong action reduce the price of gasoline, as he claims? Well, not really.
Did Biden’s strong action reduce the price of gasoline, as he claims? Well, not really.
Biden claims that his release of oil from the national strategic petroleum reserve -- added to his discussions with OPEC -- has increased the amount of oil production and thus reduced the price for petroleum feedstock (mainly crude oil) to U.S. refineries. In actuality, it is the economic slowdown in China -- coupled with the increase in Russian oil getting to market (more, in fact, than the NATO countries expected) -- that has resulted in a greater availability of oil that has brought about a lower gas price. OPEC did not respond to Biden’s request for increased oil production, and the release of oil from the national reserve is a small quantity on the world market.
Over three million barrels per day of world refining capacity has been shut down, including over 1,000,000 barrels per day in the U.S. These refineries were the older plants that would require ongoing investment to remain in operation, and, with the Biden administration promising to shut them down, it would be unprofitable to keep them in repair and continue their operations. The higher $5 per gallon gasoline price that many were seeing nationwide earlier this summer was more directly related to an inadequate supply of gasoline to meet the surging demand of the summer driving season.
(Excerpt) Read more at americanthinker.com ...
When gasoline hit $5 per gallon, people began to reduce their consumption -- which has now fallen 8% below last year’s consumption level. This has allowed the operational refineries to back off to 90% of capacity, which allows them to make some repairs following a long run of operating at full capacity. The increased supply availability, due to the reduced customer demand, has resulted in the rapid reduction of gasoline prices.
Folks, The basic law of Supply and Demand does not change.
Supply and demand for petroleum will alter the price for the petroleum. But with the refinery bottleneck between the petroleum and the production of gasoline (caused by the reduction in refining capacity), it is really the supply and demand for gasoline that is setting the price for gasoline.
The cost for the feedstock to the refinery currently results in only a minor change in the price of gasoline, given that there is no spare refinery capacity available.
With hurricane season approaching, which typically shuts down refining capacity, and with the numerous seasonal autumn turnarounds, which are scheduled for the off-lining, revamping, and maintenance of oil-refining capacity, the current low prices for gasoline could be short lived — unless an economic recession acts to reduce demand even further, in which case Joe Biden could claim credit for having had a real impact on the reduction of gas prices.
Ping.
lower prices? Where? Still $4.65 here-
Good explanation.
We're still paying a buck or two more a gallon than we used to be be paying.
And it ain't Putin.
Classic case of “Don’t pee down my back and tell me it’s raining”.
More than half of the Strategic Petroleum Reserve has been sold off due to Biden’s orders.
The SPR is for emergencies.
Biden’s emergency was his collapsing poll numbers.
Global demand has gone down. It’s that simple.
Where’s that, Bob? California?
Down to $3.79 here in Central Kentucky, but I don’t credit Biden.
Putin price cuts lol
Are we back to 2.35 a gallon? NOPE! Is our petroleum reserve shrinking dangerously low while hunter biden gets rich from the sale? YEP!
I paid $3.89 yesterday just over the border in Michigan from Ohio. A few miles in to the state it was 20 cents more per gallon.
.
File this under "Things That American Child-Adults Don't Really Understand".
Idiocracy in action.
coupled with the increase in Russian oil getting to market
It would appear that quite a few of our “friends”(India) do not share in the ... Ukraine forever ... boycotts of Russian oil. As does most of the world. Those countries have their own problems and are figuring out their own solutions.
Russians want to sell their oil to a buyer, they’re going to sell it.
I didn’t read the whole article but with inflation being what it is, things costing more and more, I’m thinking that folks just aren’t driving anymore than they have to. Not taking the family road, summer road trips this year. Folks are cutting back.
Fundamental and basic, Supply and Demand, as you stated.
Biden’s not handling gas prices, except for driving them up with regressive policies. We the peons are the ones who’ve lowered gas prices.
Quite a racket he's got going there - run up the price of gasoline $3 per gallon and then pat yourself on the back when the price comes down less than a $1. Great job there, Brandon.
What are you talking about Bob434? Prices by you haven’t gone down 30cents, after almost tripling? /sarc
Here in Georgia folks are celebrating. Hmmmm....prices down a bit, after more than doubling and they suspended the 30cent, per gallon, gas tax that they dropped on us during Deal’s administration.
Deceit.
It's the Dems' middle name.
who says demand is reduced? Some more conspiracy-minded folks claim that the EIA unexpected, two week, "systems shutdown" and then surprise report of decline in demand is just more fake Government statistics.
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