Gas prices dropping soon?

[sk47]

Why is this $2+ gas always mentioned? It was $3+ before COVID 19 and was driven down because NO ONE WAS DRIVING ANYWHERE.

and stop with the political BS or this thread will go bye bye

Hello; I do not recall plus $3.00 gas right before covid. Best i recall it was $2 something in my area and the economy was doing well at the time.

Not BS by the way. Fuel prices were actually way up well before the Putin invasion. Up well over a dollar a gallon before Putin made his move.

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[Bikeman315]

You give the average voter wwaaayyyyy too much credit. The Biden/Harris administration and Democrats generally are relying upon the very short memories of voters. They will remember the most recent thing and that is why we are hearing "it's Putin's fault" or "Putin's gas hike" being thrown about. They know that if they say it enough, that is what the average voter will remember in November 2022 and they expect to skate on any responsibility for their policies and the rapid increase in prices from January 2021 to January 2022 before anything happened in Ukraine.

Gas going up before the Ukraine conflict had nothing to do with politics, period. Demand went up, a lot. Production here in the US did not and still has not reached pre-Covid levels.

It's simple economics. Higher demand with less production = higher prices. Please stop trying to make this something that's it not. You want to talk politics, please go to Facebook.

 

[Bikeman315]

Hello; I do not recall plus $3.00 gas right before covid. Best i recall it was $2 something in my area and the economy was doing well at the time.

Not BS by the way. Fuel prices were actually way up well before the Putin invasion. Up well over a dollar a gallon before Putin made his move.

Hello; Have you heard of Covid? Seems not otherwise you wouldn't be making these comments.

1. Covid hit.
2. Demand for gas went way, way down.
3. US Production of gas goes way, way down.
4. Covid started to tail off.
5. Demand for gas goes way, way up.
6. Production has still not caught up to demand.
7. Result = higher prices

Ukraine has made matters much worse because of its effect on world markets. Lack of US production + Ukraine = disaster for gas prices.

 

[key01]

Hello; I do not recall plus $3.00 gas right before covid. Best i recall it was $2 something in my area and the economy was doing well at the time.

Not BS by the way. Fuel prices were actually way up well before the Putin invasion. Up well over a dollar a gallon before Putin made his move.

See post #18 for a complete answer. Gas prices here in Northern Illinois were in the $3.50 range in most of 2019. Maybe by you they stayed in the $2 range. Good for you as always.

 

[andrewtac]

Please quit spreading disinformation. Simple Google search shows it was in the 2s during covid during the previous administration. It didn't start really climbing until 2021 (3s wasn't until may 2021). This can be fact checked. Gas fell during the previous administration, then during coivd rose slightly. The big climbs started in 2021, well before Russia. Again, these are just facts that can be verified; not politics.

 

[andrewtac]

https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=emm_epm0_pte_nus_dpg&f=m

 

[sk47]

Gas going up before the Ukraine conflict had nothing to do with politics, period. Demand went up, a lot. Production here in the US did not and still has not reached pre-Covid levels.

It's simple economics. Higher demand with less production = higher prices. Please stop trying to make this something that's it not. You want to talk politics, please go to Facebook.

Hello; Granted supply and demand always play a part in the price of a commodity. There are other inflationary pressures in play. The trillions of newly printed money and the increase of the national debt to over 30 trillion. Play a role.
Back before covid, say in December and January the world economies were humming along. Very low unemployment. Lots of demand for fuels at the time.
Then policies started playing a role. Shutdowns. lockdowns and closing of business and travel. Spending increased massively as part of the overall Covid policies. Policies enacted by all parties in power.
So you are correct in that demand waned for a time and then started to come back as most of us decoded to go about our lives if we could and slowly some of the restrictions have been lifted.

Thing is some other policies started about 14 months ago. Policies that raised a big question among the speculators and oil patch producers. Oil prices started up immediately when those first policies were signed into effect and continued to go up for all those 13 or 14 months.
Is demand greater now than just before covid hit? I am not sure the demand can be a whole lot greater now than then. I do know oil producers pay attention to policies.

 

[key01]

@andrewtac Help me understand where these retail prices are taken from and are they inclusive of all surcharges and taxes?

 

[andrewtac]

Hello; Granted supply and demand always play a part in the price of a commodity. There are other inflationary pressures in play. The trillions of newly printed money and the increase of the national debt to over 30 trillion. Play a role.
Back before covid, say in December and January the world economies were humming along. Very low unemployment. Lots of demand for fuels at the time.
Then policies started playing a role. Shutdowns. lockdowns and closing of business and travel. Spending increased massively as part of the overall Covid policies. Policies enacted by all parties in power.
So you are correct in that demand waned for a time and then started to come back as most of us decoded to go about our lives if we could and slowly some of the restrictions have been lifted.

Thing is some other policies started about 14 months ago. Policies that raised a big question among the speculators and oil patch producers. Oil prices started up immediately when those first policies were signed into effect and continued to go up for all those 13 or 14 months.
Is demand greater now than just before covid hit? I am not sure the demand can be a whole lot greater now than then. I do know oil producers pay attention to policies.

And this follows the actual timeline of the historical data. But why let the truth get in the way of an agenda.

 

[andrewtac]

@andrewtac Help me understand where these retail prices are taken from and are they inclusive of all surcharges and taxes?

It is a average across all prices in the country. Basic middle school math.

 

[sk47]

See post #18 for a complete answer. Gas prices here in Northern Illinois were in the $3.50 range in most of 2019. Maybe by you they stayed in the $2 range. Good for you as always.

Hello; I do not try to keep up with gas prices in other states and places. States can have big differences in state fuel prices. Back when i did travel i saw that a lot.
87 gas was $3.99/gal this past Friday in Middlesboro KY at the Murphys. The national average was well over $4 at that time.

 

[andrewtac]

Hello; I do not try to keep up with gas prices in other states and places. States can have big differences in state fuel prices. Back when i did travel i saw that a lot.
87 gas was $3.99/gal this past Friday in Middlesboro KY at the Murphys. The national average was well over $4 at that time.

What it is in a local area is irrelevant when your talking about macro affects of the economy and world issues; unless of course your trying to push an agenda and disinformation.

 

[sk47]

What it is in a local area is irrelevant when your talking about macro affects of the economy and world issues; unless of course your trying to push an agenda and disinformation.

Hello; You are correct. The national average has weight much greater than a local area price. I just can keep local prices in my head better than national averages much of the time.

Back some months ago when the Colonial Pipeline was shut down for a time the prices in my area went up and prices in other areas did not so much. Even tho the incident was localized to a section of the country, the incident did cause some speculation to raise prices some in unaffected areas if memory serves.

 

[andrewtac]

Hello; You are correct. The national average has weight much greater than a local area price. I just can keep local prices in my head better than national averages much of the time.

Back some months ago when the Colonial Pipeline was shut down for a time the prices in my area went up and prices in other areas did not so much. Even tho the incident was localized to a section of the country, the incident did cause some speculation to raise prices some in unaffected areas if memory serves.

Localized events can spread to larger areas, but the polotical trap people are attempting to set is to say gas prices were higher than they were because in location x, taxes, surcharges, etc were this amount therefore prices were actually y. And thus history is remembered differently, due to a political agenda. I am purposely not saying why prices rose or who's responsible, don't want to make it political, as those are the rules. I am just pointing out the history and the attempts to spread disinformation.

 

[Bikeman315]

But why let the truth get in the way of an agenda.

What agenda? I do not have an agenda. That is why I'm saying that politics had virtually nothing to do with the cost of gas. Then or now.

Covid hit in March of 2020. By the spring lockdowns were in place and travel fell off the cliff. Gas prices plummeted. Fast forward to 1st quarter 2021. The vaccines are coming out and slowly but surely demand started to rise. This had nothing to do with the past administration nor the current one. This is exactly what your article shows.

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