Willing To Pay More For Gas By Not Buying Russian Oil?

CarolfromTX said:
Reopen the Keystone pipeline and you won’t have to worry about Russian oil.
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I hear this so often but there needs to be global thinking instead of tunnel vision thinking.

"Most of Russia's oil goes to Europe and Asia. But the key here is to think about the oil supply globally, rather than the US specifically. The commodities world is a heavily interconnected one, and oil is priced through a global market. So what happens in one area of the world can affect another."

But remember that oil is bought and shipped around the world through a global commodities market. So in that sense it doesn't really matter who specifically is getting crunched by the loss of Russian oil, because lower supply affects those global prices no matter what. And as we know from Econ 101, when there's less supply of an item in demand, prices rise.

https://www.cnn.com/2022/03/12/energy/us-gas-prices-russia-oil/index.html

Why is it that some refuse to see how the world of a global economy works?
 
Nosy Bee-54 said:
I hear this so often but there needs to be global thinking instead of tunnel vision thinking.

"Most of Russia's oil goes to Europe and Asia. But the key here is to think about the oil supply globally, rather than the US specifically. The commodities world is a heavily interconnected one, and oil is priced through a global market. So what happens in one area of the world can affect another."

But remember that oil is bought and shipped around the world through a global commodities market. So in that sense it doesn't really matter who specifically is getting crunched by the loss of Russian oil, because lower supply affects those global prices no matter what. And as we know from Econ 101, when there's less supply of an item in demand, prices rise.

https://www.cnn.com/2022/03/12/energy/us-gas-prices-russia-oil/index.html

Why is it that some refuse to see how the world of a global economy works?
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This all might be true, but, where are all the gas stations that have hung the hung out sign's... "no gas"? It seems like there is an abundance of fuel even at these ridiculous prices.
Sorry, but, until I see those signs at gas stations, I'll have to go with corporate greed.
 

Corporate greed? So two years ago, when gas was $2 a gallon, there was’t corporate greed, but now there is? I know its a complicated issue, but just blaming corporate greed or Putin or Covid doesn’t ring true for me. We need energy independence.
 
CarolfromTX said:
Corporate greed? So two years ago, when gas was $2 a gallon, there was’t corporate greed, but now there is? I know its a complicated issue, but just blaming corporate greed or Putin or Covid doesn’t ring true for me. We need energy independence.
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I believe it was corporate greed 2 years ago also. and for many years before.
From the 50's to the 1974, crude oil hovered between $20 and $30 a barrel, and gas cost between .27 and .39 cents a gallon.
In March 1974, the top price of a barrel of crude jumped to $60. and the average price of gas was .53 cents.
In April 1980, the top price of crude was $1.38.37 and yet the average price of gas was $1.19
In September 1990, the top price of crude was $84.47 yet although the crude price dropped, the average price at the pump was $1.24
Moving on... in Jan. 2009 the price of crude was $56.02 and average gas was $1.18
Leaping to Jan. 2016, price of crude is $40.28 and average gas was $1.88
April of 2020, crude is at $20.86 and now average gas is $2.45
And on and on it goes. Looking back, I'd say the greed took off in March of 1974.
I'll stick to my statement. When there is a true shortage of gasoline, then they can justify huge price increases. Not until.
 
Aunt Bea said:
IMO corporate greed is just another way of saying supply and demand.

When supply exceeds demand, prices drop.
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Prices were even higher again today, but unlike last Friday the road was crowded with cars today. People have to get to work and warm weather is coming so people will want to travel. IDK.
 
chic said:
Prices were even higher again today, but unlike last Friday the road was crowded with cars today. People have to get to work and warm weather is coming so people will want to travel. IDK.
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I'm sure there has been some change in behavior, but I haven't noticed any dramatic changes in my area.

I haven't noticed an increase in foot traffic or a decrease in people driving alone.

I notice that people in the grocery stores are still making minor purchases as opposed to stocking up to make the trip count.

I doubt that much will change until Americans begin to run out of room on their credit cards.

Hopefully, this will be a short-lived blip until the uncertainty of war is factored into the market.
 
Sigh. From a non-partisan source, ABC news, one year ago, here is the real reason for the current gas price rise and domestic fuel shortage:

"March 23, 202"
"BILLINGS, Mont. -- President Joe Biden shut down oil and gas lease sales from the nation’s vast public lands and waters in his first days in office, citing worries about climate change. Now his administration has to figure out what do with the multibillion-dollar program without crushing a significant sector of the U.S. economy — and while fending off sharp criticism from congressional Republicans and the oil industry.
The leasing ban is only temporary, although officials have declined to say how long it will last. And it’s unclear how much legal authority the government has to stop drilling on about 23 million acres (9 million hectares) previously leased to energy companies."
"The administration postponed lease sales in the Gulf of Mexico and in Wyoming, Colorado, Montana and Utah. Biden earlier had suspended leasing in Alaska's Arctic National Wildlife Refuge."
"A ban on new leases means drilling would fade out as existing ones expire. It would be a heavy blow for western and Gulf Coast states that heavily depend on oil and gas revenue to pay for schools, roads and other services."
https://abcnews.go.com/Technology/wireStory/explainer-biden-halting-federal-oil-gas-sales-76631021
 
Today's prices at the pumps here in the UK... remember this is per litre not per gallon


55428889-10618569-Workers_across_Britain_are_avoiding_driving_into_work_or_taking_-a-1_1647441511080.jpg
 
Oil prices should come down even more now that it is imminent that Iranian oil and possibly Venezuelan oil may be back on the market. USA no longer think that oil coming from those two countries is BAD oil. ;) This would help offset sanctioned Russia oil.

"Russian Foreign Minister Sergei Lavrov said Tuesday that he had “received written guarantees” from the U.S. that its demands would be met, meaning the talks will likely proceed. The nearly simultaneous release of British-Iranian dual nationals from years of Iranian detention back to the U.K. and a reported U.K. repayment of a decades-old $530 million debt to Iran have improved prospects for an agreement.

“Deal could come together quite quickly — potentially as soon as this week,” analysts at political risk consultancy Eurasia Group wrote in a note Wednesday."

"Commodities analysts at S&P Global Platts predict that if sanctions were to be lifted on Iran immediately, it could export an additional 500,000 barrels of oil per day to markets from April to May of this year, with that figure reaching an additional 1.3 million barrels per day by the end of this year."

https://www.cnbc.com/2022/03/18/rus...lks-making-revival-of-2015-pact-imminent.html

https://www.france24.com/en/live-ne...ose-tehran-frees-captives-as-obstacles-narrow
 
Going to rake in even more for 2022!

"Saudi Arabian oil giant Aramco reported blowout full-year earnings on Sunday, posting a more than doubling in year-on-year net profit to $110 billion.

Aramco benefitted from surging oil prices during 2021, with international benchmark Brent crude rising above $80 a barrel by the end of the year, up roughly 50% for the 12-month period. Supply shortages added to a complex slew of factors driving major uncertainty across the energy and commodity complex, even before Russia’s invasion of Ukraine."

https://www.cnbc.com/2022/03/20/sau...-more-than-doubles-on-soaring-oil-prices.html
 

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