With demand continuing to shrink with even China’s economy shrinking, and us in one of the biggest oil booms in history, something is just not right here.
I’m not saying that the following comment of mine is totally correct, but it might have a bearing on what we see happening.
It has been observed many times that when government exhorts the population into conserving, food, water or energy because there isn’t enough of the commodity available and the people respond by doing just that. That industry or government then says that because not enough is being consumed that they MUST raise the price to make up shortfalls in their expected income stream.
This time the decrease is because the number of people who were driving back and forth to work has decreased radically, therefore the amount of gasoline being consumed has decreased also. This also goes for Vacation travel and I believe but am not entirely sure about, the number of trucks being needed to transport non-essential consumer products has also decreased.
A consumer can’t purchase what he doesn’t have money for once the credit cards are maxed out and they have to repay them back at exorbitant rates.
That may play into it. I’ve wondered that myself.
However, what about all the foreign oil we no longer need? Is it cheaper oil than the domestic stuff? Would it not be comical if ending our dependence on foreign oil causes the price to increase because it reduces competition?