There is a difference between relaxing rules or making them more onerous right? Short term a Pres can do little to affect the price of Oil they have more effect on long term supply. And yes agreeing to buy it at a guaranteed price was good, too bad when Trump tried to buy it at $30 congress refused to do it... I'm glad you bring up the fact that the "embargo" did little to affect Russian Oil sales, they just started to sell it elsewhere. That meant there wasn't as much of a supply glut as predicted and that's the biggest reason the price has gone down so much as of late. (Thank China and India I guess)
So I guess that all the "experts" on CNBC who talk about the point that pricing lowering demand don't have any clue about what they are saying? Maybe I misunderstood your stance on price affecting demand...
that’s layman*talk & I don’t know if any are economists. You cannot find a micro economics textbook that does not distinguish between quantity demanded (movement along a demand curve) & a change in demand which is a shift in a demand curve. * it’s not unlike laymen typically not distinguishing between a cost & expense b/c the context does not necessitate it. But, of course the distinction is critical in financial accounting.
Biden threatened to have ICE start raiding convenience stores and gas stations and gas station owners got in line. You are seeing the results. Uncle Joe means business.
but the price of gas is disconnected from the price of oil due to refinery capacity. refinery capacity needs to be increased or we need to remove demand. would you agree?
I like your postings on this professor. Let me try.... The price of gas changes the amount of gallons of gas people buy - a movement along the demand curve. A reduction in gas powered automobiles on the road and an increase in EVs changes the quantity of gas demanded at those same prices - a demand shift curve?
It would appear that all of your statements above are accurate. The price of oil and gas don't totally travel equally due to the disconnect in refinery capacity. However in general terms cheaper oil will give cheaper gas, see 2019, 2020
That was before refinery capacity loss and increased demand. Refined product demand is at or exceeding refinery capacity. Cheaper oil and increased refinery profits may spur the investment required to update some mothballed refineries to meet the current EPA regs. There is one in Philly and one in St. Croix USVI that I know of that could add to world refining capacity. Im sure there are others
So the refinery capacity loss just happened in the last year? I thought it was something had been declining for some time with no new capacity added for years...
no. refinery capacity has been slowly dwindling away as more and more close but demand finally exceeded capacity in the last year. it is the increased demand that is changing the metric, price goes up, demand goes down, capacity can meet demand, barely
Up is down? @docspor signal! This dude is saying gas prices are going down because demand is down because prices are too high and that's bad.
The one thing that cannot affect DEMAND for a product is it’s own price. That affects quantity demanded. Demand is a correspondence between prices and quantity. A change in demand is a change in that correspondence. Here’s an easy example, I buy a lot more gas now than I did 2 years ago when it was $1.69. There was a little exogenous event that certainly decreased aggregate demand for gas as well as my personal demand. The pt today & the pt 2 years ago are not on the same demand curve. This video is a good example of when understanding this could keep you from sounding like a complete fool. But he probably - sadly - only sounds like an idiot to .01%
So are you saying that price of a product has no affect on demand? Certainly with some goods that may be true to a point. Basic necessities. But non necessities price can certainly affect demand. That's why marketing looks so much at the price point. Take the example of OREOS I love them but if the price suddenly went to $15 a package from $4 I'm not buying them... Take gas many people will boat until the price of fuel goes to high then they don't boat as much, even commercial fishermen cut back usage, (don't run offshore as far, troll less, etc.
I don't know if you don't have 3min & 19s, lack the ability or what, but post 335 explains it. You keep using demand as a substitute for quantity demanded. I know it can't be that hard; I've even been able to get a few MBA students to understand it over the years.
Haven’t read the threads but ignoring covid transportation shutdowns (driving, aviation -international travel down 73%), factory slowdowns, reduced production as oil companies reacted to lower prices, and ultimately the war in Ukraine is disingenuous, net dishonest. In addition, oil companies made about $70 Billion in profit just last quarter. Facts matter.
Off topic but,,, has anyone tried one of these? EcoPlus Fuel Saver Reviews: Does Eco Fuel Saver Really Work! Read Consumer Reports
With "Read Consumer Reports" in the title I was expecting a link to something from Consumer Reports, not an ad with a disclaimer at the bottom. It is possible to have your ECU tuned for more power or more fuel efficiency (their default setting is more fuel efficiency, so most tuners are going for more power), but that is expensive and these cheap devices don't do that. https://tiremeetsroad.com/2021/09/07/does-the-ecobox-fuel-saver-work/
