Gas prices dropping soon?

[sk47]

A good explanation here:

Understanding the Correlation of Oil and Currency (investopedia.com)

A couple of key points:

• Countries that depend heavily on crude exports experience more economic damage than those with more diverse resources.

Since the Russian invasion of Ukraine in 2022, the U.S. dollar has strengthened against many world currencies due to the safe haven effect and rising inflation. This has happened even as the price of oil skyrocketed

Crucially Russia is not the safe haven and hasn't benefited / will not benefit long term. If Russia wants to sell oil as the year goes on it will need to find new markets (bearing in mind the pipelines largely go to Europe) and 'friendly countries' (as Putin likes to describe them) willing to buy oil (probably in Rubles) almost certainly at a discount. Russia buys chips / electronics etc just like everybody else and the suppliers are drying up.

In an attempt to restart car production safety rules have been dropped including airbags just to get something made. Don't underestimate the long term impact of these sanctions.

Hello; Lots to unpack in the link. Here is one bit that stood out to me.


Quote from link; "Here are the countries with the highest crude oil production based on barrels per day in 2022:14"

• "United States: 11.6 million
• Russia: 10.5 million
• Saudi Arabia: 10.2 million
• Canada: 4.7 million
• Iraq: 4.3 million"

Hello; Two quick takes based on information in the link. One is the USD (USA dollar) is still the trading currency for much of the oil trade. Add that to the significant production from USA and anything which affects the USA dollar or the oil production in the USA does have a world impact. Point being what happens in the USA does have effects around the world.

Second take is Russia oil production is only slightly behind the top USA production. So this war and the embargoes of the #2 producer also have an effect around the world.

There are two big players in the oil patch having issues currently. Russia and it's invasion. The USA with it's outrageous overspending (printing money) and a top down policy to restrict fossil fuel use.

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[Bikeman315]

There are two big players in the oil patch having issues currently. Russia and it's invasion. The USA with it's outrageous overspending (printing money) and a top down policy to restrict fossil fuel use.

The Russian issue has created a worldwide situation which, of course, effects the US. The US issue, while certainly real, is not effecting current pricing. Historically the only reason pricing should be this out of control is an issue with supply. There is “no” supply issue so the price insanity is being artificially created. We can blame anyone and everyone. There’s plenty to go around.

 

[key01]

Seems the Saudis are stepping up and crude is going lower today.

 

[Gregs24]

Seems the Saudis are stepping up and crude is going lower today.

If so that may help a bit, but seems to be a 'potential' increase rather than actual. I believe the main concern the Saudi's had was that there is no actual shortage of oil and there would be a real risk of a huge price collapse as and when the situation in Ukraine stabilises. The shortage is purely logistical with blocks to Russian sales.

Saudi Arabia ready to pump more oil if Russian output sinks under ban | Financial Times (ft.com)

 

[LSchicago]

Hong Kong is currently $11.20 USD per gallon for gas. Here is a chart of Hong Kong's gas price history. It closely mirrors the US charts. Fuel is a global commodity, which has very little to do with the president/heads of state. Thankfully our tax per gallon is reasonable in the US, so we are not paying $8-9 a gallon like Canada and Europe.

 

[K4fxd]

Fuel is a global commodity, which has very little to do with the president/heads of state.

It has a lot to do with when Presidents/heads of state make policies that reduce the supply.

 

[LSchicago]

It has a lot to do with when Presidents/heads of state make policies that reduce the supply.

We sell more than we buy, so no need for more fuel. There is no shortage. Just High global prices.

 

[The Demon]

Here’s a look at the 10 countries where gas is most expensive right now, according to GlobalPetrolPrices.com as of May 19:

Country	Price per gallon in U.S. dollars
Hong Kong	$10.966
Norway	$9.643
Denmark	$9.323
Central African Republic	$9.031
Monaco	$8.938
Finland	$8.894
Iceland	$8.755
Greece	$8.709
Netherlands	$8.582
Singapore	$8.399

Here’s a look at the 10 countries with the least expensive gas as of May 19:

Country	Price per gallon in U.S. dollars
Venezuela	$0.084
Libya	$0.118
Iran	$0.202
Algeria	$1.189
Kuwait	$1.295
Angola	$1.480
Nigeria	$1.574
Turkmenistan	$1.621
Malaysia	$1.764
Kazakhstan	$1.816

 

[K4fxd]

Here’s a look at the 10 countries where gas is most expensive right now, according to GlobalPetrolPrices.com as of May 19:
CountryPrice per gallon in U.S. dollarsHong Kong$10.966Norway$9.643Denmark$9.323Central African Republic$9.031Monaco$8.938Finland$8.894Iceland$8.755Greece$8.709Netherlands$8.582Singapore$8.399

Here’s a look at the 10 countries with the least expensive gas as of May 19:


CountryPrice per gallon in U.S. dollarsVenezuela$0.084Libya$0.118Iran$0.202Algeria$1.189Kuwait$1.295Angola$1.480Nigeria$1.574Turkmenistan$1.621Malaysia$1.764Kazakhstan$1.816

So high gas prices are not a global thing

 

[K4fxd]

More lunacy from the coast. No more good Asian food.

https://www.yahoo.com/news/los-angeles-ban-gas-stoves-234732096.html

 

[Bikeman315]

More lunacy from the coast. No more good Asian food.

https://www.yahoo.com/news/los-angeles-ban-gas-stoves-234732096.html

Total insanity. Where the heck are they going to get all the needed electricity?

 

[Zent]

F it, Nationalize all extracted resources.

The first post kinda proves it. Why is gas so expensive even when oil is close to 100$ a barrel?

Answer: The fuel industry has become an oligopoly.

Better off having it work for the people.

 

[Gregs24]

F it, Nationalize all extracted resources.

The first post kinda proves it. Why is gas so expensive even when oil is close to 100$ a barrel?

Answer: The fuel industry has become an oligopoly.

Better off having it work for the people.

But you have to pay the tax somewhere. If not on fuel then somewhere else. Nationalising anything just means more spending on government through taxes. In France for example the gas (not petrol but actual gas) prices have gone up by 4% this year because EDF is a nationalised company so prices are controlled by the government. Yipee, only hold on, who pays for EDF? Oh yes the taxpayer. So gas maybe be less expensive, but some other tax will need to rise to pay for it. Unless you are going to just print money, and we know where that ends up....

 

[Gregs24]

Please tell me what happens. I really want to know considering printing is the only thing governments understand.

Also can you explain what happens when all countries print at the same time, each jockeying to devalue their said currency to stay competitive in the export market.

When it comes to printing, the world hasn’t seen anything yet. Also brings up another good question - Why even tax at all?

No tax = no government. No government = anarchy

Re printing money - not really part of this thread, but there are plenty of governments that don't, including some with a budget surplus. Export market is irrelevant to some as well.

 

[LSchicago]

So high gas prices are not a global thing

65% of countries are higher than we are. It is a global thing.

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