The Cost of Oil

Oil Pump
Oil Pump

You may have noticed a recent (past couple of days) drop in the cost of crude oil ‘per barrel’… if you follow that sort of thing.  I’m retired and I have a lot of time on my hands, so yeah, I follow that sort of thing.  But you probably have NOT seen any decrease in the cost of gas ‘per gallon’ at the pump.  Watch this short 5-minute video that may help you understand how this works.

One report claims that the recent drop in oil prices was largely due to indications of possible progress by the U.S. in encouraging more oil production from other sources. Remember that oil prices are set based on expectations of what supplies will be in the future, and not on what prices are now… again, watch the video.

Now that the price of oil ‘per barrel’ is going down just a bit the Dems are screaming, “If oil prices are down why aren’t prices at the pump also coming down?” they ask. They want to impose new taxes on the oil companies who they claim are gouging Americans and raking in unholy profits.

But whatever the reason for this slight drop in oil prices, it’s temporary. Oil isn’t likely to return to previous low prices. The Russian invasion of Ukraine is only one cause of higher oil prices.  Biden’s “war on oil” is certainly another factor, as is that being waged in Europe by those maddened by global warming hysteria.

Oil was $37 a barrel on election day 2020 when the oil market learned Trump was out and Biden was in… and it’s gone steadily UP from there, never returning to that low point. ().  The very day America elected Biden with his well-known and long-expected war on oil, prices began climbing. That’s because the price of oil is set based on the EXPECTATION of what oil will cost.  One year later in November of 2021 – well before Putin’s invasion of Ukraine – oil had more than doubled to $80 a barrel.

The sad truth is that the DNC and the global warming fanatics want the cost of oil to increase.  They want us all to be pushed into buying electric vehicles.  They apparently don’t understand that electricity must be generated… by burning fossil fuels.  They apparently don’t understand that electric cars depend on mining rare earth minerals which the Chinese now control worldwide – 70% according to some sources.

From before Biden’s first day in office the cost of oil was rising because the oil industry was EXPECTING oil prices to increase, and therefore the cost of EVERYTHING was rising, since EVERYTHING has to be moved by trucks that run on diesel or gas.  On Biden’s first day in office, he killed the Keystone Pipeline which drove up the FUTURE price of oil (remember the video?).  Since the start of his term Biden has been waging his “war on oil” and the result is inflation not seen in more than 40 years.

And now he blames Putin?  President Biden is lying, and of course, his Press Secretary is lying as well… every day, on every network.  The cost of oil is Biden’s fault as much as any other factor, and much more than Putin.  Inflation here in America is Biden’s fault.

Think about this when you go to the polling place in November.  Want more high gas prices, more inflation, more crime, more illegal immigration, more fentanyl on our streets, more weakness and cowardice on the world stage, more boldness on the part of our enemies?  Vote in more Democrats.  It’s as simple as that.

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