Gas Prices Near You?

[KillerGoose]

(06-01-2022, 04:51 PM)BFritz21 Wrote: Biden stopped importing oil from Russia. That caused a raise in prices.

Inflation also causes a rise in gas prices.

I just saw a Facebook post from a friend at a gas station a few miles away with the price at 4.69 a gallon.

Cancelling the pipeline doesn't affect current prices, but think about how much impact it will have on future prices.

Due to the invasion of Ukraine, yes. Gas prices were already high at that point, though. That made them go higher. To be clear, most of the world stopped importing oil from Russia, not just the United States. The energy commodity market is a global market, not a U.S. market. There are high prices across the globe right now, Europe, NA, Asia etc.  

Cancelling the pipeline could influence future prices, yes, but not in a significant manner. Not alone. Again, the U.S. is on track to be producing an all-time high barrels per day by 2023. Production is being ramped up, but it is slow. When COVID hit, demand tanked so production was slashed. It is much easier to cut production than to ramp it back up. Demand recovered much better than anticipated and production has yet to match. The fundamental issue is a supply/demand issue.

I am in our weekly supply & demand meetings and none of our traders or analysts, physical or derivative, are blaming Biden or even discussing his policies during these meetings. The topics are always the same; instability in Europe due to the Russian invasion of Ukraine and lingering supply issues. This isn't to say that Biden is friendly towards O&G, but he doesn't have the power to influence a market like that.