I decided to make up for my sloth last week by posting gasoline prices a little early this week. Here you go:
Gasoline was down nearly another nickel last week, though the price declines are starting to flatten out.
You may be wondering if President Biden's executive order to release oil from the Strategic Petroleum Reserve is responsible for some of this drop. Probably not. Since mid-June, the price of oil is down 29% and the price of gasoline is down 27%. The declining price of oil is more than enough to account for the entire decrease in prices at the pump.
"You may be wondering if President Biden's executive order to release oil from the Strategic Petroleum Reserve is responsible for some of this drop. Probably not. Since mid-June, the price of oil is down 29% and the price of gasoline is down 27%. The declining price of oil is more than enough to account for the entire decrease in prices at the pump."
According to wikipedia:
In November 2021, the White House announced the release of 50 million barrels (7,900,000 m3) to address high gasoline prices.[40][41]
On March 1, 2022, President Biden announced the release of 30 million barrels of oil from the reserve in response to Russia's invasion of Ukraine.[42]
On March 31, 2022, President Biden announced that his administration would release 1 million barrels of oil per day from the reserve for the next 180 days.[10][43]
Just prior to the pandemic, the US consumed over 19 million barrels a day.
And worldwide that is in the mid to high 90s.
Biden's action has helped. It also involves agreements to refill reserves later, so if oil companies increase production, they have a buyer paying a "high" price...lower than now, but enough to stabilize prices for a while.
https://www.bloomberg.com/news/articles/2022-09-13/biden-officials-mull-buying-oil-at-around-80-to-refill-reserves?utm_source=website&utm_medium=share&utm_campaign=mobile_web_share
Well in order to save "gas" the Germans have started on their version of Boston's "big dig", or the Chunnel between England and France but with a twist to it.
Submersible sections - no boring machines. 11 miles between Germany and Denmark.
https://www.cnn.com/travel/article/fehmarnbelt-longest-immersed-tunnel-cmd/index.html
This will be fun to watch
But it will save gasoline
I don't follow Kevin's point re Biden's SPR release. He says the price of gas tracks the price of oil, which seems like a non sequitur to me. Of course the prices of gas and oil track. That's why Biden released oil from the SPR, to drive down the price of oil, and thus the price of gasoline.
Is Kevin saying the SPR release didn't impact the price of oil? I suspect that's a reasonable argument...but Kevin didn't make it.
"Is Kevin saying the SPR release didn't impact the price of oil? I suspect that's a reasonable argument...but Kevin didn't make it."
He appears to be arguing the most recently announced release didn't cause the earlier drop in the price of oil which is reasonable. But ignoring all the previous releases seems either ignorant or disengenuous.
Apropos of nothing, the lowest price of regular along my morning route is still $3.38.9, same as it's been for weeks. Yet overnight (Sunday) the Chevron station jumped upwards 20 cents from 3.69.9 to 3.89.9. Weird.
Someone got the early word from Jem Powell...
Funny how the reporters are no longer shoving microphones into people's faces at gas stations and asking them how they are "coping with the price at the pump."
Look at the curve. If the May-to-June trajectory was "skyrocketing," what should it be called now?