Near month futures for WTI are $66.1; futures for delivery in March are $64.5 (i.e., oil futures are in backwardation). This suggests that market expectations are for declines in oil prices, and hence in gasoline prices.
5 thoughts on “Gasoline Prices Down…”
Macroduck
China is a big commodity importer. Above my pay grade to assess what going on in China, but press reports indicate commodity inventories, including oil, are chock full. So while China’s economic troubles are a big part of the commodity story, including oil, Chinese inventories are, too. Simple wisdom is full inventories => falling prices.
IF we elect Harris and Democrats in both House and Senate – she can implement her housing plan – https://www.cnn.com/2024/08/16/business/harris-housing-plan/index.html
Trump’s plan on housing is mass deportation of construction workers to make housing more expensive.
Also if you are a business that does importing of parts for your finished product – I would run away from Trump like the plague – his tariff plan will greatly increase your costs – as Mark Cuban says – https://digbysblog.net/2024/09/10/dealing-with-trumps-tariffs/
I urge everyone to watch the clips of Harris closing argument in the debate – in which the former AG of California, Senator, and current VP talked about creating opportunities for everyone – families, small business owners and seniors and protecting access to reproductive healthcare and honoring our military and honoring our commitments to our allies and watch Trump’s semi-coherent rambling about WWIII and his fantasy of using nuclear weapons (seriously corporate media – you need to stop the sane-washing of Trump – Trump believes that Springfield Ohio is being overrun by pet-eating migrants – two-minutes of Googling will inform you that this is a xenophobic smear being promoted by JD Vance and the House GOP/Jim Jordan – come on NYTimes – you had three news cycles talking about Biden mixing up the names of the presidents of Egypt and Mexico and immediately correcting himself – can we do a little fact checking of the insane B.S. from Trump’s rallies )
Before I started by little drinking binge here ( saw $2.55 on the way to WinCo grocers) , When I get sober in about 36 hours hoping to get that price or below.
The part of Trumps idiocy about doubling the US oil production is a complete failure to comprehend that nobody can produce US oil at much of a profit at current crude oil prices. Remember the Saudis driving crude prices down to $40 and all the US fracking losing money. So the idea that we can drive gasoline prices down with the help of more drilling in the US, is not connected to market realities.
We know that because there are large numbers of already auctioned drilling permits that are not being explored. At current oil (gasoline) prices, the risk of losing money is way too high for the oil companies to begin drilling those places. Trump could give away drilling licenses all over US for absolutely free, without much effects on US oil production, – because we are already producing from all the fields that companies have calculated to be worth the risk/profit. Biden has taken us to a record high oil and natural gas production and we are producing more than our country can use itself. Profit margins are kind of slim so additional production makes no sense from a commercial point. If by some miracle gasoline prices fell further, oil companies would lose money on most new drilling, so they would stop. It also makes no sense from a national security point since we are already self-sufficient.
China is a big commodity importer. Above my pay grade to assess what going on in China, but press reports indicate commodity inventories, including oil, are chock full. So while China’s economic troubles are a big part of the commodity story, including oil, Chinese inventories are, too. Simple wisdom is full inventories => falling prices.
IF we elect Harris and Democrats in both House and Senate – she can implement her housing plan – https://www.cnn.com/2024/08/16/business/harris-housing-plan/index.html
Trump’s plan on housing is mass deportation of construction workers to make housing more expensive.
Also if you are a business that does importing of parts for your finished product – I would run away from Trump like the plague – his tariff plan will greatly increase your costs – as Mark Cuban says – https://digbysblog.net/2024/09/10/dealing-with-trumps-tariffs/
I urge everyone to watch the clips of Harris closing argument in the debate – in which the former AG of California, Senator, and current VP talked about creating opportunities for everyone – families, small business owners and seniors and protecting access to reproductive healthcare and honoring our military and honoring our commitments to our allies and watch Trump’s semi-coherent rambling about WWIII and his fantasy of using nuclear weapons (seriously corporate media – you need to stop the sane-washing of Trump – Trump believes that Springfield Ohio is being overrun by pet-eating migrants – two-minutes of Googling will inform you that this is a xenophobic smear being promoted by JD Vance and the House GOP/Jim Jordan – come on NYTimes – you had three news cycles talking about Biden mixing up the names of the presidents of Egypt and Mexico and immediately correcting himself – can we do a little fact checking of the insane B.S. from Trump’s rallies )
Before I started by little drinking binge here ( saw $2.55 on the way to WinCo grocers) , When I get sober in about 36 hours hoping to get that price or below.
The part of Trumps idiocy about doubling the US oil production is a complete failure to comprehend that nobody can produce US oil at much of a profit at current crude oil prices. Remember the Saudis driving crude prices down to $40 and all the US fracking losing money. So the idea that we can drive gasoline prices down with the help of more drilling in the US, is not connected to market realities.
We know that because there are large numbers of already auctioned drilling permits that are not being explored. At current oil (gasoline) prices, the risk of losing money is way too high for the oil companies to begin drilling those places. Trump could give away drilling licenses all over US for absolutely free, without much effects on US oil production, – because we are already producing from all the fields that companies have calculated to be worth the risk/profit. Biden has taken us to a record high oil and natural gas production and we are producing more than our country can use itself. Profit margins are kind of slim so additional production makes no sense from a commercial point. If by some miracle gasoline prices fell further, oil companies would lose money on most new drilling, so they would stop. It also makes no sense from a national security point since we are already self-sufficient.
This is a good point on the economics. Alas Trump does not do economics. Neither do his MAGA moron supporters.