Yeah, then why is the price of gas going up?
US producers are eporting more where the price is higher.
President Trump has addressed this issue and says it’s not good. I believe he is going to release strategic oil reserves on the US market to get the price down.
I don’t agree with that article, USA is still importing over 8 million barrels a day, how can we be flooding anyone with oil when we don’t have enough for our own use.
Reserves
“Yeah, then why is the price of gas going up?”
Lowest reserves in a long time, supplies tighter worldwide due to Russia, OPEC and Venezuela, and higher anticipated demand as summer approaches.
US filling the need, but the above still controls. One more geopolitical problem and we will be in shortage.
Yeah, then why is the price of gas going up?
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Goes up this time every year as refineries go offline for repairs and to switch from Winter blend gas to Summer blend.
In the bad old days, the Ted Kennedys of the government optimized US policy to minimize US gasoline prices in the short run.It did so by imposing price controls on US producers, and averaging the (artificially low) price of US petroleum with the artificially high OPEC price. And forbidding export of US petroleum.
That was the optimum short-run solution for the US consumer - and also the optimum strategy for the benefit of OPEC. It meant no downward pressure on the world price due to US production, and minimized incentive for US consumers to conserve due to the OPEC price.
That policy is now eliminated entirely, with the effect that nothing the US government does helps OPEC or harms US production. The result is that US production is incentivized, and US production presses down on the oil price not merely in the US but the worldwide price. But of course US production, big as it is, is a smaller percentage of the global market than of the US market, so whatever upward pressure OPEC generates affects the US market more directly than in the past.
There would be an argument to be made for finding a mechanism whereby the US government helped put a floor under US oil prices such that US producers would face less risk when increasing their drilling. Perhaps releasing Strategic Petroleum Reserve supplies now, and saving the money to buy oil to replenish the reserve with US oil when the price has declined.