re: Oil Price Piece: What’s Really Happening With Gasoline Demand?

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why is he bragging about gas prices then?

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1) First he blames Russia and the war in Ukraine
2) He blames oil companies
3) He blames gas station owners
4) Claims credit for prices going down

What a clown..

Gasoline and diesel prices where more influenced by less refining capacity post 2020 due closures and partial refinery conversions to profitable renewable diesel. Oil prices were higher in 2014 before the price collapse but gasoline and diesel not at high.

Summer travel driving is what didn't materialize as normal.

FWIW, offshore oil and gas production is on the rise from leases obtained several years ago. Lots of new subsea tiebacks to existing semisubmersible production platforms have been key and a cost savings. Deepwater break even from $55 per barrel has been cut by $20, as the average.

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Biden is working very hard behind the scenes and bring prices down. He is showing to be an effective leader.

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There's also some large gas pipeline projects taking place in the Permian which should increase production more from:

1- Allowing constrained NG in New Mexico to flow, which will allow barrels of oil to flow. NMOCD rule from last year banned flaring except in cases of real emergency or equipment failure. Can't burn the gas in the air any more in order to just get oil production flowing.

2- With current NG prices and demand for LNG, the operators currently flaring in TX in order to move oil would certainly love to be able to flow the gas as well rather than just burning it up.

At the end of the day, though, like you said, refining capacity is the issue here domestically. The increased barrels of oil will be nice to have on the world market, as well as the LNG exports.

In all cases you have to consider the 90+ cents per gallon to pay RIN credits from fuel blenders, not the oil companies. That is Valero's cost even though it is one of the largest owners of ethanol plants.

Refineries were losing Billions back then. That low price is why the price is so high today, several shutdown permanently to keep from going bankrupt.

Crude Oil from offshore is far more refinery friendly that the light stuff from the Permian. Increased production in the Permian will likely go overseas. Refineries are already getting as much as they can refine without vapor locking crude units.

Much if not most of Permian production is 56-60 API gravity and actually condensate. It has to go through what amounts to two crude units. The first to get all the light ends out and make it like normal crude oil. That costs real money.

So, it is not all WTI (which is only a specification widget) but West Texas Light.

Don't worry he will claim it was him and him alone that got gas prices to drop so sharply and not the fact that people are driving less because of inflation and having less money to spend. Plenty of things will appear better right before midterms so the sheep will believe biden is making great strides to get the US back on track.

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It’s pretty brazen that his administration was blaming gas prices on Putin and literally saying that presidents can’t control gas prices when the price was going up, and now that gas prices are going down they’re blasting every form of media taking direct credit I mean that’s a pretty bold strategy.

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He has the American Pravda... err MSM to cover for him.

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The real answer is a major slowdown in the Chinese economy followed by global inflation followed by Biden’s policy snafus.

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Partially but gasoline prices are higher than the normal ratio due lack of refining capacity. It is still close to not being a enough but the projected shoratages never occurred.

Russian oil was never off the market just at a $40 discount per barrel to those who would buy it. Thus oil replaced by Russian in China and India went to elsewhere such as the exports from the US went to Europe instead of Asia and India.