Gas Is $2.75 a Gallon and Projected to Go Nowhere But Up

[Legion]

John Hofmeister said energy prices may continue to rise from the national average of $2.75 per gallon.

This a $0.33 per gallon increase as compared to the same month last year.

According to Hofmeister: "There’s something else that’s going on that’s more subtle. What that is, is that the industry, the producers, are practicing serious capital discipline and they’re not roaring back to produce more oil. And also, they’re getting squeezed by the administration.

So,the ban on leasing — the prohibition on new leases from the Biden administration — that’s going to create a psychology in the industry of, “There’s going to be less available,” and the psychology drives the pricing as well.

As long as we see this hostile administration, we’re going to have a problem with prices."

[CASPER]

It is $2.46 here, and yes, unless OPEC and Russia start pumping more oil the gas prices will probably raise above $3.00 over the next few months. Supply and Demand and now that the demand is going up and the supply is not increasing that much the price goes up. Thank OPEC and Russia for not being able to work out a deal.

[Legion]

Not only does fueling up cost more, but higher prices also translate into food and other consumer goods becoming more expensive due to higher transportation costs. Regulatory overreach in the energy sector damages the stability of the economy and the livelihoods of countless people.

It is not just the federal government that is threatening the energy sector.

Local and state governments are also raising energy costs.

The more regulations there are, the higher energy costs are going to be.

[Rune]

All commodities are soaring under the Biden Administration.
A good economy is to be expected under a Democratic president.

No surprise there.

[Legion]

All commodities are soaring under the Biden Administration.

Prices are soaring. Is that to be expected?

https://www.google.com/search?hl=en-...&bih=941&dpr=1

[Rune]

Prices are soaring. Is that to be expected?

https://www.google.com/search?hl=en-...&bih=941&dpr=1

Yes

[Legion]

Yes

Why?

[Rune]

Why?

Supply and demand.
Pretty basic stuff.

[Legion]

Supply and demand. Pretty basic stuff.

Is the available supply of commodities unequal to the current demand for those commodities?

[Rune]

Is the available supply of commodities unequal to the current demand for those commodities?

Yes, since we switched to just in time supply lines.
As the economy heats up near empty warehouses are causing supply issues.

[Legion]

Yes, since we switched to just in time supply lines. As the economy heats up near empty warehouses are causing supply issues.

Is that so?

[RB 60]

$3.09 and rising...

Thanks Joe.

[no worries]

John Hofmeister said energy prices may continue to rise from the national average of $2.75 per gallon.

This a $0.33 per gallon increase as compared to the same month last year.

According to Hofmeister: "There’s something else that’s going on that’s more subtle. What that is, is that the industry, the producers, are practicing serious capital discipline and they’re not roaring back to produce more oil. And also, they’re getting squeezed by the administration.

So,the ban on leasing — the prohibition on new leases from the Biden administration — that’s going to create a psychology in the industry of, “There’s going to be less available,” and the psychology drives the pricing as well.

As long as we see this hostile administration, we’re going to have a problem with prices."

Hostile?

By not issuing new leases?

Nothing from preventing oil companies from using existing leases.

Nothing preventing oil companies from using state owned land.

Nothing preventing oil companies from using private land.

Why are the whining about only federal land?

[Legion]

Hostile? By not issuing new leases? Nothing from preventing oil companies from using existing leases. Nothing preventing oil companies from using state owned land. Nothing preventing oil companies from using private land.
Why are the whining about only federal land?

Ask John Hofmeister.

Meahwhile...

Higher Gas, Energy Prices Boost Consumer Inflation

February’s reading is the latest sign of an upswing in prices.

The rise in the consumer-price index’s increase in 2020 was the smallest yearly increase since 2015.

Rates on long-term Treasury bonds, an indicator of expected inflation, have swept steadily upward in recent months.

Economists say that inflationary pressures left unchecked could build into spiraling prices that, once set in motion, might be hard to quell.

The Fed recently changed its policy framework to no longer pre-emptively raise interest rates to prevent inflation from surpassing its 2% target. The Fed’s target is based on a different inflation measure, the price index of personal-consumption expenditures released by the Commerce Department.

More than 80% of economists surveyed by The Wall Street Journal said they expect inflation to rise above the Fed’s 2% target for a period due to the latest relief package.

Prices for services, excluding energy, were up 0.2% on the month, driven by rising prices for medical care--in particular, physicians’ services.

https://www.wsj.com/articles/higher-gas-energy-prices-boost-consumer-inflation-at-start-of-year-11615384703

[Legion]

$3.09 and rising...Thanks Joe.

But it's only the president's fault when a Republican is in office.