Why Less Oil Production and Higher Gasoline Prices?
I mean the obvious answer is Demand is outstripping Supply. Oil companies and refineries are not the charitable type either. No oil/natural gas pipeline would have helped either.
Digby had the answer up on Hullabaloo (15th) which I read first so credit goes there first. Digby did reference Dean Baker at CEPR (14th) which I am reading right now to add his comments momentarily. And we do have our own experts at Angry Bear in the form of New Deal Democrat and RJS. Both offer excellent commentary and detail on oil and gasoline manufacture and production.
Anyway, here is the story from CEPR:
Trump demanded that Saudi Arabia cut back production back in 2020. According to Trump, he worked out a deal where OPEC producers would all agree to reduce their output. The reason we now have high oil prices is that they have not returned their production to pre-pandemic levels. Hey, by the media’s standards of what makes a politician responsible for an event in the world, this is practically airtight.
I find it very easy to imagine that Trump and Jared persuaded the Saudis to do this for this very purpose.
I wonder why Democrats aren’t pointing this out?
“High Gas Prices Are Donald Trump’s Fault” – Center for Economic and Policy Research (cepr.net)
“Who caused high gas prices?” – Digby’s Hullabaloo (digbysblog.net)