WH Response Is Pathetic as Gas Hits All Time Record High

WH Response Is Pathetic as Gas Hits All Time Record High
By Nick Arama | Mar 07, 2022 6:30 PM ET

Hold on to your hats and stock up on gas while you can, because it just hit a record high, and it’s going to go up even more.

The national average is now $4.104/gallon.



From CNBC:

“There are few words to describe the unprecedented rise in gasoline prices over the last week, with massive spikes coast to coast in both gasoline and diesel prices, as oil prices jump to their highest since 2008,” said Patrick De Haan, head of petroleum analysis at GasBuddy.

“Forget the $4 per gallon mark, the nation will soon set new all-time record highs and we could push closer to a national average of $4.50,” he said. According to GasBuddy, the average price of gasoline will likely set a new all-time record within a day.

Meanwhile, what is Joe Biden doing about it?

On Monday, White House Deputy Press Secretary Jen Psaki was hit with that news about the record gas prices. She lied her head off trying to blame the rise in gas prices on the Russian invasion of Ukraine.



While the most recent spikes are no doubt related to the Russian invasion, they were already rising a tremendous amount even before that. So the Biden team can’t try to wiggle out of it like this. Moreover, if Biden hadn’t mishandled everything regarding Russia, to begin with, we wouldn’t be stuck in the mess we are with that situation now.

One reporter then put Psaki on the spot — reciting the comments of Americans disturbed by what they were seeing at the pump.



The Biden administration is going to do everything — except make America anywhere close to energy-independent, as it was under President Donald Trump. Releasing oil from the Strategic Petroleum Reserve doesn’t do anything to solve the long-term issue. 30 million barrels a day — what Biden said he has released — is about a day and a half of U.S. use. Back in November, Biden trumpeted that they were making a release from the Reserve that was going to solve the problem of high prices. That was well before the invasion and we still had high prices. It’s concerning that they keep citing it as though it’s any kind of a policy approach at all and not just pilfering the savings account that we have.

Where is Biden’s meeting with American energy producers to address this? What is he doing instead? Talking about possibly getting more oil from Saudi Arabia, Venezuela, and even Iran. He’s had more meetings with America’s enemies like Iran than he has had with Americans who could address this.





Psaki can’t even keep the lies straight. She takes a swipe at Trump over Iran, but it’s Biden who left us in this position, not Trump. It’s Trump who warned us against being reliant on others for energy.



But meanwhile, how’s that making Russia a pariah thing going? Not so much, they’re still holding meetings with Russia as the negotiator on the Iran Deal.



This last clip just makes me want to shake my head.



Psaki says the EU has to “diversify” so they aren’t reliant upon Russian oil, but she won’t acknowledge their failure to ensure the independence of our supply, or that we cannot only provide for ourselves but sell to Russia. Now, if we did that, we would not only free them and us from Russian oil, we would reduce the prices worldwide with the increased production and help our national security interests. So, of course, Joe Biden doesn’t want to do it.

Crude Oil WTI Futures Go Bananas, Briefly Spike to $130: And this Is What’s Happening at my Gas Station
By Wolf Richter for WOLF STREET. • Mar 6, 2022

Speculators are reacting to other speculators who are reacting to whatever.

Sunday night, crude oil WTI futures, as soon as trading started, spiked to $130.50 a barrel, the highest since July 2008. Maybe it was just one contract someone traded to get it over with and nail that number. But this came after discussions in Washington whether or not the US should ban the imports of Russian crude oil. After the crazy open, the price of WTI futures fell, eventually to $123 a barrel, still the highest since July 2008. And then they started rising again. Currently, WTI trades for around $126, also the highest since July 2008.

The reason the price spiked isn’t because the US is suddenly running out of crude oil or anything, but because traders and algos smelled an opportunity and jumped on it, and drove up the price of those futures, and it’s pure speculation, but that’s what futures trading always is.

The US doesn’t import much Russian crude and could do just fine without Russian crude – and that’s why the import ban is even proposed. And if some buyers in the US actually buy Russian crude, it’s simply another trade, like a gazillion others, but Russian crude is a big part of the gigantic complex global oil trade.

For example, California is cut off from other US producing regions because there’s no pipeline across the Rockies. It produces some of its own crude oil and imports some crude oil from Alaska, and imports crude from the rest of the world. The local refineries, such as those in the Bay Area, buy this imported crude and refine it and export large quantities of gasoline, diesel, and jet fuel to Latin America, which is a huge profitable business.

Those exports of gasoline, diesel, and jet fuel also go to Mexico, which in turn sells a large amount of crude oil to the US. This is all part of the vast and complex global oil trade. Everyone’s doing it, and it is now getting thrown into chaos.

So far, Russian crude oil exports have been very carefully exempted from the sanctions, but there is such chaos around blocked payment systems and shipping involving Russia that buyers are reluctant to buy physical Russian crude and ship owners are reluctant to transport it. And futures traders are jumping all over this.

Now, the “76” tourist-trap gas station here in my neighborhood in San Francisco – the brand “76” is owned by Phillips 66 – doesn’t sell crude oil, and it doesn’t sell futures either. It sells physical gasoline that has been in its tanks for some time. That gasoline came from the Phillips 66 refinery in the Bay Area, which took delivery of the crude oil well before then at prices that were set even before then – when prices were a lot lower.

Nevertheless, even as the cost of the gasoline in the tanks hasn’t changed, the price has been surging. And the difference is just extra profit.

And this is what inflation is about: Ridiculous price increases stick because consumers are willing to pay and because companies are confident that they can get away with charging them, because the inflationary mindset has taken over. I’ve been discussing the appearance of the inflationary mindset since January 2021. It means, people are willing to pay whatever.

So here we go. The price at my tourist-trap 76 gas station has been going up a few cents nearly every day. On February 5, regular was still $4.99. This evening it was $5.85: the price has surged by 17% in one month, though the actual cost of the physical gasoline in the tank likely hasn’t changed over the period.

And if consumers go on a buyers’ strike and drive less, and if they use their most gas-sipping vehicle, and if they start shopping around, as demand comes down by 10%, well then, gas stations start competing on price again, and prices come down. But that hasn’t happened yet. That gas station below still had plenty of customers. It was still getting away with those price increases.

February 5, regular $4.99:

Crude Oil WTI Futures Go Bananas, Briefly Spike to $130: And this Is What’s Happening at my Gas Station
by Wolf Richter • Mar 6, 2022 • 213 Comments
Speculators are reacting to other speculators who are reacting to whatever.
By Wolf Richter for WOLF STREET.

Sunday night, crude oil WTI futures, as soon as trading started, spiked to $130.50 a barrel, the highest since July 2008. Maybe it was just one contract someone traded to get it over with and nail that number. But this came after discussions in Washington whether or not the US should ban the imports of Russian crude oil. After the crazy open, the price of WTI futures fell, eventually to $123 a barrel, still the highest since July 2008. And then they started rising again. Currently, WTI trades for around $126, also the highest since July 2008.

The reason the price spiked isn’t because the US is suddenly running out of crude oil or anything, but because traders and algos smelled an opportunity and jumped on it, and drove up the price of those futures, and it’s pure speculation, but that’s what futures trading always is.

The US doesn’t import much Russian crude and could do just fine without Russian crude – and that’s why the import ban is even proposed. And if some buyers in the US actually buy Russian crude, it’s simply another trade, like a gazillion others, but Russian crude is a big part of the gigantic complex global oil trade.

For example, California is cut off from other US producing regions because there’s no pipeline across the Rockies. It produces some of its own crude oil and imports some crude oil from Alaska, and imports crude from the rest of the world. The local refineries, such as those in the Bay Area, buy this imported crude and refine it and export large quantities of gasoline, diesel, and jet fuel to Latin America, which is a huge profitable business.

Those exports of gasoline, diesel, and jet fuel also go to Mexico, which in turn sells a large amount of crude oil to the US. This is all part of the vast and complex global oil trade. Everyone’s doing it, and it is now getting thrown into chaos.

So far, Russian crude oil exports have been very carefully exempted from the sanctions, but there is such chaos around blocked payment systems and shipping involving Russia that buyers are reluctant to buy physical Russian crude and ship owners are reluctant to transport it. And futures traders are jumping all over this.

Now, the “76” tourist-trap gas station here in my neighborhood in San Francisco – the brand “76” is owned by Phillips 66 – doesn’t sell crude oil, and it doesn’t sell futures either. It sells physical gasoline that has been in its tanks for some time. That gasoline came from the Phillips 66 refinery in the Bay Area, which took delivery of the crude oil well before then at prices that were set even before then – when prices were a lot lower.

Nevertheless, even as the cost of the gasoline in the tanks hasn’t changed, the price has been surging. And the difference is just extra profit.

And this is what inflation is about: Ridiculous price increases stick because consumers are willing to pay and because companies are confident that they can get away with charging them, because the inflationary mindset has taken over. I’ve been discussing the appearance of the inflationary mindset since January 2021. It means, people are willing to pay whatever.

So here we go. The price at my tourist-trap 76 gas station has been going up a few cents nearly every day. On February 5, regular was still $4.99. This evening it was $5.85: the price has surged by 17% in one month, though the actual cost of the physical gasoline in the tank likely hasn’t changed over the period.

And if consumers go on a buyers’ strike and drive less, and if they use their most gas-sipping vehicle, and if they start shopping around, as demand comes down by 10%, well then, gas stations start competing on price again, and prices come down. But that hasn’t happened yet. That gas station below still had plenty of customers. It was still getting away with those price increases.

February 5, regular $4.99:

February 28, regular $5.13:

March 3: regular $5.57:

March 6: regular $5.85. Next step: $6+

Temple wrote:

Stop your fukin whining--
there is war and it is Russia/Putin and oil involved in sanctions.

Blaa .. Fuck You

{-drivel-}

Quote :

raising gas prices isn't a priory at this time.

So you're now the self appointed dictator of what should/not be posted as per your priorities .. But i suppose your incessant, inane blubbering about everything Trump for 5 fucking years would be a priority

Grackle wrote:

Temple wrote:

Stop your fukin whining--
there is war and it is Russia/Putin and oil involved in sanctions.

Blaa .. Fuck You

{-drivel-}

Quote :

raising gas prices isn't a priory at this time.

So you're now the self appointed dictator of what should/not be posted as per your priorities .. But i suppose your incessant, inane blubbering about everything Trump for 5 fucking years would be a priority

Gas was $2 a gallon under Trump, and inflation was only a word in the dictionary.

Temple needs to check into a memory loss clinic.

Temple wrote:

Stop your fukin whining--

Be happy and healthy ride a bike

In the middle of an Arizona summer when it's 118 degrees out? I'll pass.

Fuck You

Putin didn't do shit while Trump was president. Just sayin'...

Even South Korea hates democrats


South Korean opposition conservative Yoon Suk-yeol wins presidential election

South Korean opposition candidate Yoon Suk-yeol was elected president in Wednesday’s election, with ruling party candidate Lee Jae-myung conceding defeat and congratulating his opponent.

With more than 95% of the votes counted and Yoon leading, Lee spoke to reporters at Democratic Party headquarters early on Thursday and conceded he had fallen short.

The unusually bitter election campaign was marred by scandals and smears, but the policy stakes are high for the country of 52 million.

Around 77% of South Korea’s 44 million eligible voters cast ballots to pick the leader of a nation whose global status is rising even as it has been riven by gender and generational divisions, while facing a confrontational North Korea.

The winner must tackle challenges including South Korea’s worst wave of COVID-19 infections, growing inequality and surging home prices, while navigating an increasingly tense rivalry between China and the United States.

Voters also want the new president to root out graft and pursue negotiations to curb North Korea’s nuclear ambitions.

https://www.france24.com/en/asia-pacific/20220309-south-korean-opposition-conservative-yoon-suk-yeol-wins-presidential-election

Gas coupons worth $300 a month? Some economists support new government aid as pump prices rise
March 10, 2022 by admin

As the Democratic Party administration in Washington struggles to find effective ways to combat high inflation, some economists are calling for lawmakers to provide new assistance to Americans dealing with rising gasoline prices.

“If I were a Democratic leader in the House, I would introduce a bill to grant $50 billion in gas price relief to low-income families and challenge Republicans to vote against it,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics. In a tweet on Tuesday.

Doesn’t this spending increase inflation? Shepherdson responded after a critic suggested exactly that, with the economist saying it wouldn’t be because spending $50 billion amounts to Only 0.2% of the US GDP.

The average retail price of gasoline in the U.S. has soared to a record well above $4 a gallon as Russian President Vladimir Putin’s war on Ukraine helped drive RB00 energy prices,

Opinion: Gasoline price is not really record high. In fact, the inflation-adjusted cost of driving a mile has been higher for most of the past century

Stuart Hoffman, PNC’s chief economic adviser, said Shepherdson’s proposal is a “brilliant idea,” adding that Congress should consider gasoline coupons for Americans eligible to check stimulus through the March 2020 relief package.

Saving $2 or $3 per gallon of gas for those families could be up to $200 or $300 a month per family, assuming they typically pump 100 gallons a month into their cars, Hoffman said in a Twitter post.

“It is worth every penny to protect our freedom and our economy,” the PNC expert said, referring to gas vouchers. A PNC spokesperson declined to make an interview with Hoffman available on Wednesday.

There is a real opportunity for legislation providing such vouchers given how high gas prices are, Greg Vallier, senior US policy analyst at AGF Investments, said in a note on Wednesday.

“There will be fierce resistance from anti-fossil-fuel activists, and the size of the massive deficit has begun to wane. But this is an election year, and consumers have stunned gasoline prices—a perfect storm, in our opinion, for rebates or coupons,” Vallier wrote.

The AGF strategist noted that the voucher program could be set up so that “unused vouchers can be redeemed for cash at face value by the US Treasury,” which would “incentivize eligible families to reduce their gasoline use.”

Republicans have made clear that higher prices will continue to be a major line of attack against the president and his fellow Democrats as the November midterm elections approach.

“I know oil is an international market, but the main reason Americans pay so much is because of bad domestic policies,” House Minority Leader Kevin McCarthy, a California Republican, said while speaking Wednesday at a news conference. These are not Putin’s prices. They are President Biden’s prices.”