President Biden is adopting Donald Trump’s habit of venting his political frustrations on Twitter.
“Oil prices are decreasing, gas prices should too,” Mr. Biden tweeted Wednesday. “Oil and gas companies shouldn’t pad their profits at the expense of hardworking Americans.” [bold, links added]
Sorry, Mr. President. There’s no vast industry conspiracy to raise gasoline prices.
Oil prices are decreasing, gas prices should too.
Last time oil was $96 a barrel, gas was $3.62 a gallon. Now it’s $4.31.
Oil and gas companies shouldn’t pad their profits at the expense of hardworking Americans. pic.twitter.com/uLNGleWBly
— President Biden (@POTUS) March 16, 2022
Gas prices almost always rise faster than they fall, as the Federal Reserve Bank of St. Louis explained in a 2014 report.
“When oil prices rise after being steady for some time—gasoline prices shoot up quickly,” the Fed paper explained. “In contrast, when oil prices fall after being steady for some time, gasoline prices retreat slowly.”
Individual retailers set gas prices based on what they expect their future fuel deliveries to cost. But they have no clue right now due to all of the global uncertainty.
Oil prices have plunged this past week in part because the United Arab Emirates said it would urge OPEC to pump more. But the cartel might not.
Markets also forecast that China’s lockdowns, if they continue, will dampen global growth and fuel demand this year.
But they may not. Ukrainian President Volodymyr Zelensky also raised hopes on Tuesday that peace talks with Russia were beginning to “sound more realistic.”
But the war could go on for weeks. Who knows what crude prices will be a week or even a few days from now.
By the way, the vast majority of the nation’s 150,000 gas retailers are mom-and-pop operations. Fewer than 5% are owned by refiners.
Profit margins are only about 10 to 15 cents a gallon even when prices shoot up. These small businesses aren’t padding their profits. They’re trying to hedge against big losses if oil prices spike.
Markets are complicated, we know. But maybe Mr. Biden could try to understand how they work, for a change.
Read more at WSJ
The main rule is to stop electing Democrats especialy Liberal Democrats their the worst of all
When I can’t sleep at night, I listen to BBC WORLD NEWS on the radio.
Almost every article must include some phrase about “Human-Induced Climate Change.”
(Currently, the war in Ukraine has tempered that boiling flatulent zeal of “scientific consensus.”)
It’s incredible how BBC officially promotes those vicious attacks on our Energy Sector.
It’s almost impossible for any start-up or a small/medium size oil company get any money from the bank for any possible investment/s in the oil and gas projects.
Even at school, the leftist teachers are telling the students,
“If your parents work in any Oil and Gas company, they are killing our planet.”
The (lacking intelligence but full of Dictatorship) Socialist Democratic Party politicians in Congress are preparing the Witch Trials for any Oil/Gas CEO’s.
(Think, Stalin’s trials.)
Any Energy Business CEO has learned one thing: I’m not suicidal to invest in any oil drilling project!
No money for new businesses in the oil/gas industry to start exploring/drilling for oil, and no suicidal investment plans for any established Oil/Gas company.
The political environment – thanks to the Green Mass Psychosis supported by all of those Neo-Marxists (including the radicals from the Democratic Party) – preclude any Oil Renaissance in America.
Our Energy CEO’s clearly understand that even if the Republicans take over Congress in 2022, and/or the White House in 2024, in the long run, the unfettered Climate Change Mass Psychosis along with that morally-corrupt “scientific consensus” will prevail.
The worse our Energy situation gets, the bigger blame on few climate change deniers (including the secret ones – see Stalin’s trials) will be placed.
Nobody will blame the deranged Neo-Marxists for that flatulent Human-Based Climate change fallacy.
Therefore, big oil companies are doing (almost) nothing about investing in future oil/gas projects, and in the meantime, making profits with their well-deserved inactivity.
“But maybe Mr. Biden could try to understand how they work, for a change.”
He literally cannot “understand” no matter how hard he tries. He was a lawyer before being elected to the Senate in 1972 at age 30. He’s been a politian ever since. No ‘real-world’ experience.
My worry? I’m living five miles from a prime military target for an ICBM. Forget global warming, this president could really be the death of me, saying or doing something that the opposition misunderstands. He’s an accident waiting to happen.
This whole Global Warming/Climate Change a World Wide Scam which leads to World Government all lead by the United Nations and enforced by their Blue Helmets
Well, when your entire BEING and everyone you surround yourself with are JDEALOGICALLY driven, you have little or NO CAPACITY, let alone intellectual curiosity to understand market forces & fundamental realities. The environmental activists & social justice warriors dominating this Administration are BLIND to facts & reason. Almost like religious zealots, they exhibit little ability to accept any ideas that “stray” from their narrative. With media “enablers” in tow, it doesn’t make for spirited, well informed & thoughtful debate on ANY issue.