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Energy Sec. says gas prices may not drop below $3 until 2027
Posted on 4/19/26 at 12:56 pm
Posted on 4/19/26 at 12:56 pm
quote:CNBC
Energy Secretary Chris Wright on Sunday said gas prices may not drop below $3 until next year, as the U.S. war with Iran and closure of the Strait of Hormuz continue to wreak havoc on energy markets.
“I don’t know, that could happen later this year, that might not happen until next year, but prices have likely peaked,” Wright said on CNN’s “State of the Union” when asked when prices at the pump will return to pre-war figures. “Certainly with a resolution of this conflict, energy prices will go down.”
Wright added that “under $3 a gallon is pretty tremendous in inflation-adjusted terms. We had that in the Trump administration, but we hadn’t seen that in inflation-adjusted terms for quite a long time. We’ll get back there for sure.”
5
Posted on 4/19/26 at 1:35 pm to bigjoe1
Posted on 4/19/26 at 3:04 pm to bigjoe1
Glad we dropped all those alternative energy incentives!
Posted on 4/19/26 at 4:16 pm to Shepherd88
Oil refiners should do well for the next couple of quarters.
Posted on 4/19/26 at 6:18 pm to bigjoe1
quote:
Energy Sec. says gas prices may not drop below $3 until 2027
Charles Payne said this early last week... This admin fricked up big time with their Iran bullshite.
Posted on 4/19/26 at 9:35 pm to bigjoe1
Oil companies make less profit per gallon than U.S. makes on federal taxes on each gallon.
Oil Co - Retail price less cost of goods sold
Less than
Federal taxes per gallon
Energy Sec, over to you.
Oil Co - Retail price less cost of goods sold
Less than
Federal taxes per gallon
Energy Sec, over to you.
This post was edited on 4/19/26 at 9:39 pm
Posted on 4/19/26 at 9:42 pm to bigjoe1
I’m calling bs on this
Generally when prices stay high for an extended period, it’s due to a decline in productive capacity (for example, beef prices are high because of falling cattle counts happening for years)
In the case of gas prices, the price has increased because oil currently being produced in the Middle East can’t cross a body of water.
Productive capacity hasn’t changed.
Prices would be expected to fall rapidly once the strait opens, since the supply of oil would go back to what it was.
Unless I am missing something and oil production facilities have been destroyed
Generally when prices stay high for an extended period, it’s due to a decline in productive capacity (for example, beef prices are high because of falling cattle counts happening for years)
In the case of gas prices, the price has increased because oil currently being produced in the Middle East can’t cross a body of water.
Productive capacity hasn’t changed.
Prices would be expected to fall rapidly once the strait opens, since the supply of oil would go back to what it was.
Unless I am missing something and oil production facilities have been destroyed
Posted on 4/19/26 at 10:13 pm to HailHailtoMichigan!
quote:
Generally when prices stay high for an extended period, it’s due to a decline in productive capacity (for example, beef prices are high because of falling cattle counts happening for years) In the case of gas prices, the price has increased because oil currently being produced in the Middle East can’t cross a body of water. Productive capacity hasn’t changed. Prices would be expected to fall rapidly once the strait opens, since the supply of oil would go back to what it was. Unless I am missing something and oil production facilities have been destroyed
You can’t be further from the truth if you tried.
For openers, when this episode ends you can’t just turn on a spigot, startup of shut in facilities will take months.
Worldwide storage is dwindling at a furious pace. The world currently consumes more than is being produced. Companies have also been deferring capex spending for years, most project cycles are years.
Also the logistical mess when all of this is over.
Posted on 4/19/26 at 10:47 pm to TJG210
I guess we will agree to disagree
Do I think oil prices will immediately fall to their prior levels. No.
But the re-opening of the strait would obviously lead to a fall in prices. Substantially.
I just looked at your post history and it’s obvious we will not be able to agree on the Iran thing. I personally am an Iran hawk who believes that we simply cannot let Iran keep their nuclear program/baliistic missile defenses in exchange for cheap gas. If I understand your position correctly, you think it’s more important to get oil prices down Asap even if it means giving Iran some of their present demands. That’s understandable but we won’t be able to agree on this.
Do I think oil prices will immediately fall to their prior levels. No.
But the re-opening of the strait would obviously lead to a fall in prices. Substantially.
I just looked at your post history and it’s obvious we will not be able to agree on the Iran thing. I personally am an Iran hawk who believes that we simply cannot let Iran keep their nuclear program/baliistic missile defenses in exchange for cheap gas. If I understand your position correctly, you think it’s more important to get oil prices down Asap even if it means giving Iran some of their present demands. That’s understandable but we won’t be able to agree on this.
Posted on 4/19/26 at 10:57 pm to HailHailtoMichigan!
quote:
I just looked at your post history and it’s obvious we will not be able to agree on the Iran thing. I personally am an Iran hawk who believes that we simply cannot let Iran keep their nuclear program/baliistic missile defenses in exchange for cheap gas. If I understand your position correctly, you think it’s more important to get oil prices down Asap even if it means giving Iran some of their present demands. That’s understandable but we won’t be able to agree on this.
I don’t think you’ve read my posts at all lol
I tend to agree that we shouldn’t allow Iran to have nukes. My main interest is to make as much as I can from trading this event. From my research, I don’t believe prices are dropping for the foreseeable future for the reasons outlined.
Do I think Trumps behavior through this has been objectively dumb, I do. He’s constantly tweeted out misinformation for no other reason than to manipulate prices and allow certain folks to front run the information. But I have no interest in debating the merits of the conflict itself.
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