Quote:
Originally Posted by Marine1974
Maybe you recall supply and demand ? When American oil drilling was restricted , oil prices shot up from $30 a barrel to $130 a barrel overnight.
Tell that to the people priced out of buying a home . 60 % of Americans can’t afford to purchase a home . The huge massive amount of national debt ,
printing of money and shutting off the spigot of American 🇺🇸 oil is driving inflation and interest rates higher . .
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Respectfully, the spigot of US oil has not been shut off, and this year, American oil production reached a record high of over 12.8 million barrels a day. This is simply a fact, and it can be verified easily.
In the last three weeks, the price of oil on the open market has fallen precipitously. On 9/18/2023, the price of a gallon of regular gas on the market was $2.70. On 10/6/2023, the price of a gallon of regular has plummeted to $2.19. That is a 19% loss in 3 weeks time. When the price of gasoline moves like this, it's obvious that the market is based on a lot more than American oil output. There is lots of speculation in that price. And estimates of future demand. A report came out that American gasoline demand is at its lowest point in 22 years. Another report showed crude oil stockpiles growing by 6.5 million barrels. Demand is way down. Since it's denominated in US dollars, part of the price is the strength of the American greenback, which has been increasing, not decreasing. That huge market decrease should start to show up at the pumps fairly soon....it takes some time but if gasoline futures stay here, we should see a significant drop in gas prices at the pump pretty soon. However, with the sad events this weekend in Israel, it is unknown how that will affect the markets.