Gasoline and Oil Price, through August 1st Figure 1: Gasoline price through week ending August 1 (blue, left log scale), price of oil, Brent, through August 1 (red, right log scale). Source: EIA via FRED. That’s a 15.5% decline since the week ending June 20.
The jump in gasoline prices from $4 to $4.60 at the beginning of the year seems to be very sharp relative to the more modest increase in oil prices. It would be interesting to see what was happening to refinery margins.
August 3, 2022
OPEC Plus members agree to a small increase in oil production.
Politically, the paltry increase would appear to be a snub of President Biden, who went to Saudi Arabia seeking assurances from big producers that they would act to cool oil markets.
By Jenny Gross
The group of oil producers known as OPEC Plus approved a small increase in production on Wednesday, just over two weeks after President Biden visited Crown Prince Mohammed bin Salman of Saudi Arabia to seek assurances that the group would act to cool oil markets.
The Organization of the Petroleum Exporting Countries and its allies said they would increase production 100,000 barrels a day in September, far less than the nearly 650,000 barrels a day that the group agreed to add in July and August. OPEC Plus has now raised output to roughly prepandemic levels, but global oil supply is still low, and high energy prices have contributed to skyrocketing inflation around the world.
Politically, the paltry increase in output — less than one-tenth of 1 percent of global oil demand, the smallest boost in memory — would appear to be a snub of Mr. Biden, who went to Saudi Arabia seeking added production from major oil producers in the Middle East in order to ease gasoline prices. Raad Alkadiri, Eurasia Group’s managing director for energy and climate, said the increase was so small that it was effectively meaningless.
“It is a rounding error at best,” he said, akin to Saudi Arabia’s brushing off the White House by saying: “There you go — we’ve given you 100,000 barrels a day. Now get off our backs.” He said the move would not ease prices, nor was it a signal of any immediate intent to deliver more barrels to global markets.
Saudi Arabia’s decision not to increase production further was based on its own political and national security interests, not on Washington’s, Mr. Alkadiri said. Saudi Arabia’s ability to increase output significantly is limited, he added, and “for the Saudis to be able to play their role as the central bank of oil, they need to make sure they have significant volumes they can bring on in case of an emergency.” …
America should be actively working on oil production and types of refining with Venezuela, but this appears to be politically impossible and therein resides an important caution about the way and extent to which America uses sanctions. Venezuela has the necessary oil reserves.
Both Brent and WTI down a lot today, Brent now below 100 and WTI almost down to 90.
Very recessionary feel.
Higher oil prices lead to recessions! Lower oil prices lead to recessions! Damn – you have very malleable opinions.
It is sunny outside right now – RECESSION. It will rain tomorrow – RECESSION!
Oil prices above the carrying capacity tend to lead to recessions, yes. Recessions tend to lead to lower oil prices, also yes.
If the decline in oil prices were purely a movement along a supply curve as Stevie is suggesting here, then we could see a decline in production per basic microeconomics. Oh wait – world oil production is growing which likely means we are seeing an outward shift of the supply curve:
And we thought Stevie was the best oil consultant ever. Funny thing – it is clear he does not get even basic economics.
Yes, to think that a complex outcome such as broad based economic growth can be predicted by a single parameter is almost funny, if it wasn’t so sadly common. But then to also completely misunderstand the basics of that one parameter is just plain SAD.
Remember the hell the Tea Partiers gave Hillary Clinton over mails? Well check out what Peter Navarro did:
NEW YORK (AP) — The Justice Department filed suit Wednesday against Peter Navarro, claiming the former adviser to Donald Trump used an unofficial email account while working in the White House and wrongfully retained presidential records.
The lawsuit in federal court in Washington claims Navarro used at least one “non-official” email account — a ProtonMail account — to send and receive emails. The legal action comes just weeks after Navarro was indicted on criminal charges after refusing to cooperate with a congressional investigation into the Jan. 6, 2021, attack on the Capitol.
The civil cases alleges that by using the unofficial email account, Navarro failed to turn over presidential records to the National Archives and Records Administration.
The Justice Department is asking a federal judge for an order “authorizing the recovery of any Presidential records in the possession, custody, and/or control of Mr. Navarro.” The suit also seeks unspecified damages.
“Mr. Navarro is wrongfully retaining Presidential records that are the property of the United States, and which constitute part of the permanent historical record of the prior administration,” the suit states.
yeah, i have not heard any calls from republicans to send him to jail. it was all faux outrage directed towards hillary. mostly because she was a woman.
We should visit Navarro’s house and scream over and over LOCK HIM UP! LOCK HIM UP!
WTI price just over $88.50!