Note when oil and gasoline prices began to rise. That rise started in May 2020. Between the first week of May 2020 and the last week of December 2020, oil prices had tripled. Was President Trump to blame for this?
No, the reason oil and gasoline prices rose is that the economy started to open back up from the Covid-19 shutdowns. Those shutdowns had negatively impacted a couple of million barrels of U.S. oil supplies, and those supplies were slow to bounce back once the economy opened back up. That’s why we have soaring oil and gasoline prices.
Keep in mind that the entire world has experienced this. Do people honestly believe that cancellation of the Keystone XL pipeline drove up gasoline prices in Tokyo? Further, this price rise has taken place across most commodities. We have seen soaring lumber prices, base metals prices, cotton, oats, sugar — all primarily associated with the Covid-19 impacts on the economy.
"Do people honestly believe that cancellation of the Keystone XL pipeline drove up gasoline prices in Tokyo?"
ReplyDeleteYes, that is a basic pricniple of Supply and demand. If there is (perceived) less supply of a commodity, the price shoots up. When there is oversupply, or a glut, then the price goes down. Why would you imagine Biden is scrambling to buy oil from other enemies such as Venezuela? Duh! The answer is that if supply is increased, price comes down.
"It is in fact the latter. Despite the sharp rise in the price of
ReplyDeletegasoline this year, Biden deserves neither the credit nor the blame —
although in the longer term his policies are likely to lead to higher
future gasoline prices."
So he is saying there is a time lag, but that Biden is causing long term problems.
there are many other factors. A few months ago, in Uk and europe, there was a shortage of truck drivers (for whatever reasons). this meant a shortage of petrol (gasoline) in filling stations, and prices went up. There was not a production shortage, but a logistics one.
If you cut supply, prices will go up. Biden is now substituting Venezuela for Canadian oil! How stupid is that? OK, there is the time lag, but see the absurdity of his decisions?
Wow a Phd in economics obtained from Fox News
ReplyDeleteAny non secular thoughts for the week?
ReplyDeleteit's not entirely Biden's fault, but his agenda has been anti fossil fuels. we don't yet have enough capacity to run the world on renewable energy.
ReplyDeleteSo we either need to use fossil fuels or go back to the Stone age.