What's wrong with this CNN Headline and Article? (1 Viewer)

[Steve R.]

$3 gasoline could be around the corner — unless OPEC and Russia start pumping more oil​

New York (CNN Business)OPEC and Russia's unprecedented production cuts last spring lifted oil prices out of a death spiral. Nearly a year later, the group is under pressure to cool off the red-hot market.
US crude has raced back above $60 a barrel. That's a far cry from the depths it reached last April when oil crashed below zero (negative $40.32 a barrel, to be exact) for the first time in history. Prices at the pump are starting to creep higher, too. The national average hit $2.70 a gallon Friday, according to AAA. That's well above the April low of $1.76 per gallon.

The article fails to make any mention the Biden's administration "war" on fossil fuels. They are in the process of putting the oil, gas, coal industries out-of-business. That means less domestic energy production which creates "shortages" that have to be made-up by other sources. It is not the responsibility of OPEC and/or Russia to start pumping more oil to keep US domestic gas prices low.

Also, for the true environmentalists, allowing energy production to be moved to Russia and the Middle East simply transfers the environmental degradation from the US to these foreign sources. It does not lessen the adverse environmental impacts. One can also make the case that the environmental effects, from foreign sources of energy would be greater due to the need to transport oil.

There is one redeeming aspect to this article, it didn't take a gratuitous accusation of blame at the Trump administration. Nevertheless, this is an example of how the media can distort news to serve political goals. In this case, failing to mention that the Biden administration is "crippling" the US fossil fuel industry and that is one reason behind the potential for $3.00 a gallon gas.

 

[NauticalGent]

The writer of this article has NO understanding on how the price of oil and subsequently fuel is tied to the US dollar.

 

[Steve R.]

The writer of this article has NO understanding on how the price of oil and subsequently fuel is tied to the US dollar.

Your post reminded me of an issue that I had not thought about concerning this article. Oil is a commodity. The US government is dumping trillions of dollars into the economy to promote "stimulus". Theoretically, that should result in inflation (devaluing of the US dollar).

Apparently, inflation at the consumer level has not yet significantly spiked up. Nevertheless, I have been noticing occasional references to (producer) commodities beginning to spike upwards. Eventually, that should result in accelerated inflation at the consumer level. Oil, being a commodity, won't be immune to inflation. Many view investing in oil, as an inflation hedge, as equivalent to investing in precious metals, such as gold.

As an off-the-wall hypothetical thought, the stock market has having a "melt-up" normally viewed as a "bubble". Is the current stock market rise a form of "inflation"? Stimulus money chasing the "scarce" resource of stocks thereby driving up the price of stocks?

 

[Mike Krailo]

The problem is that it is more like $4 / gallon around the corner.

 

[Minty]

Ha hahha ha, American gas prices, always funny from this side of the pond.

We are currently paying around £4.75 a gallon.

I'm glad I get around 50Mpg

 

[NauticalGent]

Ha hahha ha, American gas prices, always funny from this side of the pond.

Quite right Minty, if we ever had to pay what the rest of the world paid, there would be blood in the streets. I remember when it reached $4 a gallon back in 2008-2009. There was wailing and gnashing of teeth...including mine!

 

[Minty]

Honk Kong makes us look cheap though !!

Gasoline prices around the world, 01-Apr-2024 | GlobalPetrolPrices.com

Gas prices by country using official data sources.

www.globalpetrolprices.com

 

[Isaac]

Steve when I saw that article, the first thing I thought was this guy is way behind. In Arizona it already is $3/gallon, what is he talking about. midgrade > $3/gal. cheapest unleaded you can get is alread 2.90

 

[Steve R.]

The problem is that it is more like $4 / gallon around the corner.

An unexpected (but obvious side-effect) from Covid-19 "social distancing", is a decline in the use of public transportation. That means more individual private car usage. More demand for oil.

Another thought. All the cars now using drive-through at fast food establishments since inside seating is being either prohibited or restricted. While waiting to get your food, the car is idling. Using oil.

 

[Isaac]

cnn also admitted yesterday, lamenting that russia and wherever else were pumping too much oil again, as a contrast to their better behavior 'last year'. I.E., the same thing Trump said at CPAC, and predicted before it

 

[kevlray]

Article a little late for Central California. We are already above $3.00/gal.

 

[Steve R.]

Article a little late for Central California. We are already above $3.00/gal.

Condolences. In North Carolina, the price of gas recently rose from around $2.16 to nearly $2.60. The reality of $3.00+ gas has not yet become a painful reality.

 

[AccessBlaster]

The higher fuel prices are a direct result on our global war on fossil fuel. The United States is a top producer of crude oil, yet we see little benefit. We want to sell crude to places like Japan but limit its use locally because it's bad for the environment.

The cost of living has some effect on the price of oil, Los Angeles will be higher than Nashville but that's relative.

 

[pbaldy]

Ha hahha ha, American gas prices, always funny from this side of the pond.

We are currently paying around £4.75 a gallon.

We probably pay about the same amount for gas. You just pay a lot more in taxes included in the price at the pump. I just looked and the excise duty alone in the UK is $2.90/gallon.

 

[Minty]

Very true, but we can't claim any of it back as a normal person buying fuel.
Businesses can only claim a percentage of the tax back, not the full amounts.

Add to that 40% Income tax if you earn enough, and it starts to get really painful if you do the "how much did I need to earn to buy that" sums...