Reply to $7/gallon gas is coming

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[quote=Anonymous]Sigh, it’s sad that politicians and the media outlets like FOX etc only spin nonsense rather than educating people about economics. Even the cable news networks that don’t exist solely to fuel the GOP lie machine do nothing to  actually explain economics.

Pre pandemic there was a price war going on between Russia and Saudi Arabia. This was driving down prices. During the pandemic, demand for oil dropped to record lows and stayed there. Oil companies had to scale back production and put any investment in new drilling sites on hold as they were on the edge of bankruptcy. When the pandemic eased, oil companies did increase production but not as fast as demand increased. Yes oil companies are trying to maximize profits to make up for losses.

Domestic production increases or decreases actually do not impact prices at US pumps. It’s fascinating but economists have found no correlation between the two. The price you pay at the pump is set by the international price of oil. [/quote]

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