Tag: Oil Prices

“I Love Inflation”

Words uttered by our dear clueless leader when he heard the new report that inflation is at a 3 year high……

… data released by the US Bureau of Labor Statistics (BLS) on Wednesday showed overall prices in May posted a yearly increase of 4.2%, marking the highest rate of inflation since 2023. Core inflation, which excludes food and energy costs, posted a yearly increase of 2.9%, the highest rate since September 2023.

Why would any president say such bullshit when most of the country is struggling under the pressure of this number?

President Donald Trump on Wednesday said, “I love the inflation” after being asked if he was concerned about new consumer price index data that showed the annual inflation rate at 4.2%, a three-year high.

Trump, speaking with reporters in the Oval Office, also predicted that inflation is “going to come down like a rock” after the United States’ war against Iran is over.

The president linked that prediction to a confusing statement about the U.S. “taking” oil and ships.

“No, I love it, the numbers were great,” Trump said when a reporter asked him about the CPI number issued earlier in the morning by the Bureau of Labor Statistics.

“You know what I really love? I love the inflation. You know why?” Trump said. “Because as soon as this war is over, you know I can say it now … you know we’ve been taking out millions of barrels of oil.”

“Nobody knows it. You know who doesn’t know about it? Iran, until right now,” Trump said.

(cnbc.com)

Donny thinks the numbers will come down once he figures out how to end the war with Iran.  (Don’t hold your breath that could take awhile)

Trump predicted that inflation would “come down like a rock” when the war was over, CBS News reports. Trump claimed the US had reached “the best economy we’ve ever hit” before the conflict, citing record stock market highs.

So much manure spread and the worse part about it is there are those the believe this stink.

Just a reminder….“Trump promised repeatedly that he would ‘end inflation’ starting on day one but by almost every measure, he’s failed to achieve those goals,” Beyer said. “And far from lowering costs, his tariffs have only made the affordability crisis worse for the American people.”

Is his plan working?

I Read, I Write, You Know

“lego ergo scribo”

“It Is Of No Concern”

Donny’s and BiBi’s war has driven the price of oil to over $110 per barrel and that means we all will be paying through the nose for transportation, food, etc….and does the mental midgets in DC think about the coming storm?

White House National Economic Council Director Kevin Hassett caused a stir on Tuesday when he indicated that the prospect of US consumers getting hurt by a protracted conflict with Iran was not of particular concern to the administration.

During an interview on CNBC, Hassett dismissed concerns about the Iran war, which is now in its third week, dragging on indefinitely.

“The US economy is fundamentally sound,” Hassett claimed. “And if [the war] were to be extended, it wouldn’t really disrupt the US economy much at all. It would hurt consumers, and we’d have to think about, you know, if that continued, what we would have to do about that, but that’s, like, really the last of our concerns right now… because we’re very confident that this thing is going ahead of schedule.”

In fact, US consumers are already hurting financially from the effects of the Iran war, which has caused the price of both oil and gasoline to skyrocket. Petroleum industry analyst Patrick De Haan reported on Tuesday that the average price of gas in the US has reached $3.80 per gallon, while the average price for diesel fuel has reached $5.03 per gallon.

The war’s impact on oil and gas prices has been exacerbated by Iran closing down the Strait of Hormuz to shipping, and so far there is no indication that it will be reopening anytime soon.

https://www.commondreams.org/news/kevin-hassett-iran-war

Donny’s ill conceived policies have already put the American consumer in a hurt locker and now he wants to just keep adding to the woes of American families.

Someone please remind me why you voted for this piece of crap.

On second thought do not bother….the only answer is you are a fuc**ng moron.

The sooner this person leaves this plane of existence the better.

Sorry to be a bummer but enough is enough.

I Read, I Write, You Know

“lego ergo scribo”

Those Damn Gas Prices!

As Summer nears the prices of gas seem to start slowly to climb…..but why is that?

Blame Biden….not accurate….blame the Middle East….some what accurate…..blame the weather….

In other words what does control the price of gas?

Well devotees….I have an answer for you….

Between keyboard warriors and comments sections, you might have noticed conflicting (and sometimes even downright incorrect) information about how, exactly, gas prices work in America today. While some popular opinions involve blaming whatever the current administration is for increases in gas prices, the issue is far more complicated than any singular person or even any singular government. In fact, the Energy Information Administration identifies four major factors that directly correlate to the cost of gas (and none of them are the president). These factors are crude oil prices (which are set by oil-producing countries), refining costs (which are increasingly impacted by natural disasters and climate change), distribution and marketing costs (which depend on the individual retailer you purchase gas from), and taxes (federal, state, and local taxes and fees).

For starters, you’ve probably heard terms like crude oil and petroleum come up in the gas conversation. For anyone who might not know, the gasoline we currently commercially purchase for our cars (or any other vehicle) is essentially a blend of crude oil and other petroleum liquids. Petroleum refineries break down crude oil into various components in order to then reconfigure and blend them into fuel products. This refinery process is extremely important, with this factor comprising 14% of your per-gallon price at the pump. Refinery costs are impacted by demand (with summer usually the highest-demand season) as well as by climate change. Since most United States refineries are located along the Gulf Coast, this generally means hurricanes, a natural disaster that can destabilize the stock market, and by extension, the economy.

Read More: https://www.moneydigest.com/1565960/what-actually-controls-gas-prices-us/

It is probably not Biden’s fault, that is being kind, that prices are rising….so please do not use that lie to determine your vote in the coming election.

You wanted to know….you ask I provide an answer….

Be Smart!

Learn Stuff!

I Read, I Write, You Know

“lego ergo scribo”

Will You Travel This Summer?

Summer is around the corner and Americans prepare for their Summer vacation there is something they need to know if they are considering a car trip.

As usual the oil industry will taker advantage of the consumer with higher prices.

Saudi Arabia will reduce how much oil it sends to the global economy, taking a unilateral step to prop up the sagging price of crude after two previous cuts to supply by major producing countries in the OPEC+ alliance failed to push oil higher, the AP reports. The Saudi cut of 1 million barrels per day, to start in July, comes as the other OPEC+ producers agreed in a meeting in Vienna to extend earlier production cuts through next year. Calling the reduction a “lollipop,” Saudi Energy Minister Abdulaziz bin Salman said at a news conference that “we wanted to ice the cake.” He said the cut could be extended and that the group “will do whatever is necessary to bring stability to this market.”

The new cut would likely push up oil prices in the short term, but the impact after that would depend on whether Saudi Arabia decides to extend it, said Jorge Leon, senior vice president of oil markets research at Rystad Energy. The move provides “a price floor because the Saudis can play with the voluntary cut as much as they like,” he said. The slump in oil prices has helped US drivers fill their tanks more cheaply and gave consumers worldwide some relief from inflation. “Gas is not going to become cheaper,” Leon said. ”If anything, it will become marginally more expensive.”

A little FYI for my readers that are planning a road trip this Summer and will be working within a budget then plan on spending more for your gas.

I Read, I Write, You Kbnow

“lego ergo scribo”

Closing Thought–21Apr20

I remember the oil hysteria from the 1970s and 80s…..I can recall when I was young gas was 35 cents a gallon (I know…I am old)……and I have watched it go to $5 a gallon and more…..but I never thought that the oil markets would ever do what they did yesterday….

It’s been a historic day in the financial markets: Oil futures plunged below zero Monday for the first time as demand for energy collapsed amid the coronavirus pandemic. The plunge led to a drop in stocks, too: The Dow fell 592 points, or 2.4%, to 23,650; the S&P 500 fell 51 points, 1.7%, to 2,823; and the Nasdaq fell 89 points, 1%, to 8,560. But the market’s most dramatic action was by far in oil, where benchmark US crude for May delivery plummeted to negative $35.20 per barrel at 2:30pm Eastern, per the AP. It was nearly $60 at the start of the year. Much of the drop into negative territory was chalked up to technical reasons—the May delivery contract is close to expiring so it was seeing less trading volume, which can exacerbate swings. But prices for deliveries even further into the future, which were seeing larger trading volumes, also plunged.

Demand for oil has collapsed so much that facilities for storing crude are nearly full. Tanks could hit their limits within three weeks, according to Chris Midgley, head of analytics at S&P Global Platts. Benchmark US crude oil for June delivery, which shows a more ”normal” price, fell 14.8% to $21.32 per barrel, as factories and automobiles around the world remain idled. Big oil producers have announced cutbacks in production in hopes of better balancing supplies with demand, but many analysts say it’s not enough. “Basically, bears are out for blood,” analyst Naeem Aslam of Avatrade said in a report. “The steep fall in the price is because of the lack of sufficient demand and lack of storage place given the fact that the production cut has failed to address the supply glut.”

As an international relations geek it will be interesting to see how this effects geopolitics….especially nations that have nothing but oil to offer the world…like Saudi Arabia.

But not to worry we will NEVER return to the days when a dollar would fill the tank….sorry about that crappy news.

Further Reading:

https://uk.reuters.com/article/uk-global-oil/oil-price-crashes-into-negative-territory-for-the-first-time-in-history-amid-pandemic-idUKKBN2210VU

Some further views on this oil thingy……

Oil prices remained in turmoil in the US and the world on Tuesday, reports the Wall Street Journal. On Monday, the US benchmark dipped into negative territory for the first time, settling at -$37.63 per barrel. On Tuesday, the price improved, but remained in the red at -$6.30 per barrel. Meanwhile, the international benchmark (Brent crude futures) dropped 15% to $20.67 on Tuesday, the lowest figure in nearly 20 years. Coverage:

  • AOC’s revised tweet: When news of the historic slide into negative territory broke Monday, progressive Rep. Alexandria Ocasio-Cortez tweeted that “you absolutely love to see it,” but then deleted the tweet for what Business Insider calls a more “tempered” response. After calling this a “turning point in the climate movement,” the proponent of a Green New Deal wrote: “Fossil fuels are in long-term structural decline. This along w/ low interest rates means it‘s the right time to create millions of jobs transitioning to renewable and clean energy. A key opportunity.”
  • Not the ‘true’ price: In some ways, the negative price is an anomaly because of some financial “nuance”—it involves futures contracts, not the price of physical oil, writes Pippa Stevens at CNBC. How the AP explains it: “Trading of contracts for US oil to be delivered in May ends on Tuesday, meaning that the extreme drop does not accurately reflect the long-term view of the value of crude but rather investors’ ability to take delivery of it now. The next futures contract, for delivery in June, is considered to now be closer to the ‘true’ price of crude.” But that price is not so great, either: The June price was down to just $16.58 a barrel Tuesday morning.
  • Stop the spigots: The chief economist at commodities trader Trafigura puts it this way to the Journal: “This is the market signaling to producers that you need to cut off more production faster because we’re drowning in oil at this point.”
  • Gas pumps: Sorry, this does not mean you’ll be getting free gasoline, notes the Washington Post. The dip into red ink is “fleeting, and symbolic, more than anything, and it won’t have much effect on the price of gasoline at the pump,” writes Will Englund. “But it showed just how much the coronavirus pandemic has crushed the world’s energy markets—and how the global effort to stabilize them was failing.”
  • Quite a deal: At the New York Times, Neil Irwin writes about the “mind-bending” development. “If you happened to be in a position to take delivery of 1,000 barrels of oil in Cushing, Okla., in the month of May—the quantity quoted in the relevant futures contract—you could have been paid a cool $37,630 to do so.” And, yes, there’s a “technical” market explanation, “but the broader takeaway is that the COVID-19 crisis is an extraordinary deflationary shock to the economy, causing the idling of a vast share of the world’s productive resources.” And “the consequences will almost surely persist beyond the period of widespread lockdowns.”

I Read, I Write, You Know

“lego ergo scribo”

The Real Reason Behind the Oil Price Collapse | The Nation

Americans have been ga-ga over the slow fall in gas prices…..we have decided now is the time for that bigger car and that long awaited road trip…..I mean why not….gas is CHEAP!

There have been expert after expert on talk shows giving a wide array of reasons for the slide of crude oil prices….but do we really know the reason?  And by we I mean us average mere mortal consumers.

 

The Real Reason Behind the Oil Price Collapse | The Nation.

What Goes Up, Must Come Down

The story of 2014 and now into 2015 is the drastic drop in oil prices and thus in the price of gas……(and the peasants danced!)

Americans are delighted at the drop in gas prices….most could care less what the reason may be…..just that it continues to drop….but for those that care are asking just what the Hell is going on?

Let me try to assist in clearing up the muddy atmosphere…..

Wonder whether gas prices will hold at their incredible $2.20 national average? Based on today’s news, filling up the tank won’t get harder over the next few weeks, the Wall Street Journal reports. US oil prices dipped below $50 a barrel for the first time in nearly six years, breaking a psychological barrier and sending a message: the high-supply, low-demand, low-price perfect storm will only continue. Here’s more:

  • Why: Plentiful worldwide oil production—including historic US highs, reports Bloomberg—ran into a weak global economy last year, lowering oil prices. Saudi Arabia, which produces oil more cheaply than many rivals, opted to maintain its market share by keeping the oil pumping. Prices dropped by 50%.
  • What it may mean: “[It] is very plain for all to see that oil supply growth exceeds oil demand growth and from a producer point of view this imbalance has to be rectified,” says the CEO of broker PVM, the Financial Times reports.
  • Upshot 1: The number of US rigs drilling for oil has dropped for the past month. Many say US shale-oil drilling stopped being profitable at roughly $60 per barrel: “We’re certainly in new territory here,” says a portfolio manager.
  • Upshot 2: Analysts say we’re near bottom but could hit $40 a barrel before a rebound in a couple of months. Some traders are even betting on $20 oil, Marketwatch reports.
  • Upshot 3: Cheap oil could cause geopolitical disruption in nations like Venezuela and Libya, and limit Vladmir Putin’s global ambitions, an analyst tells Fortune.

The one possible end to this story is the demise of OPEC……to some this will be a good thing…..but to others they see a recession coming and the possibility for a world reaction to that down turn.

Business – Opec output cut talk heats up

We Americans are smiling all the way to the pumps…..gas is down continues to drop, slightly, but dropping nonetheless…..

If you know anything about the spot markets….the question should be asked….how long will this lower price continue?

Most likely we will not hear from most people until the prices start to rise a again and then….some moron will blame Obama for the increase…..

Try-to keep up!

Business – Opec output cut talk heats up.

In Bed With Al Qaeda?

I apologize to my readers that find the Middle East a bit tiring…..well it is tiring….but I have no choice I have a grad degree in Middle East Studies and have worked and lived there…..I feel obligated to tell the stories that are seldom told in the Western media….there is more going on in the region that most Americans are aware of on any given day……please bear with me  I will get back to other stuff soon…..thanx for your patience…..

We hear many stories in the media about AQ…many of them are true….we Americans hate the very name, thanx to 9/11….we detests anyone and anything AQ….but does the rest of the West feel the same way?  England should because of the attacks, right?

On to another subject……oil!  We know how important oil is to our economy and our lives….and we all know the influence that OPEC has on the world and the prices of oil……

Now to tie the two thoughts together……

From a site called “Staff & Scrip”……

The decision of the European Union to lift the embargo on Syrian government’s energy exports by importing oil from the ‘armed opposition’is another flagrant violation of international law. It violates the UN General Assembly declaration of 1962 on Permanent Sovereignty over Natural Resources and is yet another violation of the 1981 UN declaration on the Inadmissibility of Intervention and Interference in the Internal Affairs of States. But it is much more than a technical violation of the law. It marks the decent of civilization into barbarism.

London and Paris, have more than Washington, been at the forefront of aggression against Syria. In spite of the fact that it has now been confirmed by most media sources that the Syrian ‘opposition’ is Al-Qaeda, London and Paris persist in their insane drive to arm the terrorists, using the spurious argument that if they don’t arm the ‘moderates’ the ‘extremists’ will take over the country. However, in thewords of the New York Times, ‘nowhere in rebel-controlled Syria is there a secular fighting force to speak of’. [1] The fact that the Syrian ‘rebels’ are in fact Al- Qaeda has even been admitted by the war-mongering French daily Le Monde.[2]

So, Paris and London are pushing for further arming of Al-Qaeda and the legalization of oil trading with the jihadi terrorists. In plain language this means that the loose, terrorist network known to the world as Al-Qaeda will soon become one of the EU’s partners in the oil business…

Read more…

I am still working on verifying the info…..if I find something different I will post on it………..

How will that sit with the American people?  Probably will not matter.  As long as they keep their cars that use 2 gallons to the mile then they will smile and pay the money….caring little that AQ will be in control of their addiction….

Pain At The Pump

We all have heard the rhetoric about the price of gas….it is Obama’s fault…..we need to drill more…..American oil will bring the prices down…sorry, sports fans but NONE of that is true!  At best it is just electioneering bumper stickers….but the American people are always falling for bullsh*t and why would this be any different, if anything it will get more traction because it effects most Americans daily…….

Let’s look at a few facts…….by 2006, the US was the 3rd leading oil producer in the world…..we are drilling so much that we have become an oil exporter for the first time since 1949 and oil production is up 10% since Obama is been the president….and NONE of that has brought the cost of gas down…..and now they want me to believe that more drilling will do that which it has not done in at least 5 years…..sorry asshats… I am NOT that gullible!

Gasomics 101:  Drilling does not affect gas prices at the pump despite rhetoric
Gas prices are not a function of how much oil is drilled in the US versus how much is drilled in the world. Oil prices are set on a global level. Gas prices are the result of three factors:  global price of a barrel of oil, state and federal taxes, and gas supplies coming out of refineries.
Impact of the price of crude oil
Since the US imports over 64% of its oil, the amount of oil produced domestically would have to double to the levels of 1970 which was1.2 million BPD to make any difference at all. It took nearly 40 years to decline to the levels under Bush. If it were even possible to produce that much oil in the US again, it would take years to ramp up production.
The cost of extracting a barrel of oil today according to the CEO of Exxon, the nation’s largest oil company, is about $60-$70 dollars a barrel or $0.65 cents a gallon. Oil is trading on the markets at over $100 a barrel—a 30% to 35% gross markup.  Oil companies make a profit of 2-3 cents a gallon. Where does the rest go? A large portion goes to Wall Street oil speculators.  Industry experts have estimated oil speculators increase the cost of gasoline by $0.75 a gallon.
Sometimes the price of crude oil increases due to production levels set by OPEC. Other times, it is affected by a disruption in oil supply. That was the case with the spikes in the 70’s. Neither of these are the case with this current increase.  The Arab spring uprisings were the excuse for speculators driving up prices, but no disruption in oil production or shipping has actually occurred. This is an artificial increase in gas prices designed to put profits in speculator’s pockets.
Impact of gas taxes and taxes on oil companies

The federal excise tax on gasoline is 18.4 cents a gallon—the same as under George Bush. States add taxes ranging from a low of 8 cents a gallon in Alaska to 31.9 cents a gallon in New York.  Gas taxes do not move with the price of oil or the price of gas.
Oil companies and their apologists blame taxes for high prices. Truth is, oil companies have so many write offs and subsidies, they actually pay almost no federal tax.
Impact of refineries

A very large portion of the cost difference between crude oil, and price of gas is the cost of refining it. Previous increases were the result of a reduction in refining capacity. Hurricane Katrina damaged oil refineries in the gulf reducing capacity. Fires at refineries also cut capacity.  None of that is occurring now.  Gas supplies are normal.

Are the President’s policies to blame for current gas prices?
The actual answer is that gasoline prices are not really affected by any policy of the Obama administration.  Domestic production is increasing, not decreasing.
After a short moratorium on drilling in the Gulf after the BP disaster, permits for new deep water oil wells are being issued. The recent Exxon discovery was from a well permitted after the BP moratorium was lifted. The President announced a week ago new policies to speed up domestic oil production even more.
It is an election year, and Americans are hurting from high gas prices. It creates a convenient opportunity to blame the public’s misery on the President to win votes. The facts do not support this rhetoric, but in political speeches, facts seldom come into play. Production declined under every Republican President and Republican Congress since Nixon.
Speculation, my friends!  There is your culprit, not anything any president has done or said.  But by all means, vote for the biggest liar and your gas will be $2.50 a gallon as soon as he/she is elected……..and by the way, as long as you are buying bullsh*t…..I have a bridge in Brooklyn I would like to sell you……
You want to spend less on gas?  Here is an idea……..STOP buying and driving gas guzzling monstrosities just to impress your neighbors….mindless consumerism is just as guilty of raising gas prices as anything…..