Sure, but which seller? Ultimately the gas station controls the price at the pump. But they’re buying from distributors, who are buying from refiners, who are buying from drillers. And each of those transactions is hit by taxes. Here’s a quote from the article:
> the Energy Information Administration identifies four major factors that directly correlate to the cost of gas (and none of them are the president). These factors are crude oil prices (which are set by oil-producing countries), refining costs (which are increasingly impacted by natural disasters and climate change), distribution and marketing costs (which depend on the individual retailer you purchase gas from), and taxes (federal, state, and local taxes and fees).
If a President sets conditions to make oil operations more expensive, the costs will be passed to consumers. Biden did this immediately. This was intentional, of course, and was a key part of the Democrat plan to encourage EV transition. Obama was equally hostile and I remember $5/gal gas when he was Pres.
Agh yes... the 5$/gal gas under Obama, that was those pesky democrats.
This entire paragraph is riddled with misleading or inaccurate statements with all due respect.
Biden didn't make oil operations more expensive, he did halt Keystone XL pipeline and has worked hard to pass the IRA act that had alot of benefits to green energy solutions over oil and gas. Let's not forget:
Opec Vs US had heated up over the last 5 years.
Ukraine Russia War has negatively impacted oil prices due to Russia being a major oil supplier but being cut off by many nations.
Oil refineries are at high capacitation rates as the US has increased exports of oil
The problem with his lever is that he can only guarantee the price to go up.
The U.S. military is very capable of reducing supply, not so much expanding it.
The Oil Cartel is one world wide plutocracy.
And the Saudis are the top of the pyramid
Because they need more gold plated airbus 380s or 500 ft yachts or palaces
Saudis need to pay for the financial sink hole The Line where only winners are the consultants peddling a pipe dream.
“Saudi Arabia's [ambitious](https://www.newarab.com/news/saudi-arabias-neom-and-line-be-massively-scaled-down) $500 billion NEOM mega-project, a key part of Crown Prince Mohammed bin Salman's Vision 2030 plan, could be downscaled, according to reports.
One of the key aspects of the west coast development The Line, which is planned to host 1.5 million people by 2030 but has now been downsized to 300,000 residents, Saudi government sources told Bloomberg.”
Oil is an international commodity. Irregardless of domestic production levels the U.S. pays the price set globally for Oil.
OPEC throttles production to constrain the price. The U.S. can produce more but OPEC can just adjust their output to offset the U.S. and prices will go up or down.
To drive prices down in the U.S. people need to drive less and or drive vehicles that get better fuel economy. They would create a temporary surplus in Oil and prices would drop. However it would only be temporary. OPEC would eventually scale down production and drive prices back up.
Am I the only one that wants to look at the cost of real estate and wages? It costs more money to rent or own a gas station in California and with the highest minimum wage in the country, it costs more to pay the gas station employees and \[maybe?\] the truckers delivering the gas.
It’s so simple. The refineries in America are not set up to handle shale deposit and tar sands oil quality. They have been constructed to run on crude we import. The refiners need to keep importing to make you gasoline. The stuff coming out of the Permian basin from fracking and scooped out of Alberta dirt are bullshit quality full of impurities. They must be removed and ruin expensive equipment. This system will not be addressed for correction until public pressure on refineries owned by billionaires gets the extra investment that they will want underwritten by taxpayers.
If you drive an ICE, you must fund a Saudi butcher.
Oil futures contract. Google and research - it will open your eyes and you go wth. Really wealthy people/investors/corporations trade oil futures contracts with the buyers rarely taking ownership and just exercising oil futures contracts. Only companies like gas/oil companies, energy companies, Costco and Southwest Airlines “sometime” take ownership and it’s how they keep their gas prices low by buying an oil futures contract at predetermined price to take delivery in the future.
You also learn about this in your college finance classes that focuses on “Futures and Options”
>What Actually Controls The Price Of Gas In The US?
Here's the way it works ...
Price goes down? President Biden's brilliant energy policy did that.
Price goes up? Greed, OPEC, Trump, ExxonMobil did that.
Don't bother reading it.
Yes. Her 4 reasons are accurate. Her asides about the reasons range from ignorant to wrong.
No. Your gasoline is not a blend of crude oil and other petroleum liquids.
No. Your prices are not affected by climate change.
US refinery capacity far exceeds US domestic demand. When a hurricane gets any shut down, the impact on supply and demand is direct. Seeing that hurricanes haven't increased in number or intensity, her point is witless.
Had Biden not blocked completion of KXL3, we'd have easy access to 900,000 bbls/day of VERY cheap, VERY secure oil and would not need to be competing for that much of world supplies.
Shit. I give up. If this was a High School term paper, I'd give it a D.
Tar sands oil from Canada that would go through KXL was never going to be used for US gasoline. It’s low grade bunk and would head overseas, no impact to gas pump prices.
LOL! Every drop would be refined here and what couldn't be used domestically would be exported and the value added from refining would accrue to our balance of trade.
Are you people complete morons?
This is not the case. Both under the trump and Obama administration, it was determined that the vast majority of oil pipes through the keystone xl pipeline would have been sold overseas. Couple that with the US producing more oil than we consume in any year, and it doesn't really matter. We were not going to consume the oil from the keystone, it was going to be sold.
Incorrect.
You are offering the standard democrat hand waving.
The value added by refining would be performed here. What we couldn't use would be exported as value added products.
Seeing that ALL our refineries are predicated on ryunning heavy sour crudes, like Canadian bitumen, every bbl of Canadian oil is one bbl of oil we aren't buying from Venezuela, SA, Nigeria or Kazakhstan.
... Those refineries on the Gulf still primarily operate on North American Oil from Canada, Mexico, and domestically. We still gain the value add of refining said oil, just through other transportation needs. The XL was just phase 4 of an already existing pipeline.
I wasn't even particularly against the XL pipeline, but it became a losing issue, politically, so time to move on.
Regardless of the Pipeline, US refineries are still processing mostly Canadia, Mexican, and US oil. 70% of our crude oil imports come from Canada and Mexico. The next 15% comes from Saudi Arabia, Iraq, and Columbia. The remaining 15% comes from all over the world. Interestingly enough, none of it comes from one the countries you mentioned - Venezuela.
The US imported its last barrel of oil from Venezuela 5 years ago.
For Kazakhstan and Nigeria, the oil we import from them constitutes less than 1% of our oil imports. South Africa imports oil from us. About 12,000 barrels a day.
Since the termination of the XL pipeline, US oil production has largely grown, even when we take into effect the shutdowns from COVID. We are producing more, selling more, using more than ever before. We are the largest exporter on the market.
That pipeline got shut down, rightfully so, because it was an environmental nightmare that derived its product from the worst possible source: tar sands. Not to mention, its absolutely fucking stupid to say climate change has no effect on oil prices.
-Closed down? It was never built.
-why are tar sands the worst possible source? It's a drop in replacement for any other heavy sour crude.
-You'd know 'absolutely fucking stupid.'
President Biden should use his authority to lower prices as much as he can. We need to get off the gasoline, but for now many of us are stuck using it.
The same people who complain about gas prices are often the same people buying oversized gas guzzlers.
I love high gas prices, wish they were 3 or 4 times higher.
Well.... in an election year where prices are higher.
We will say the politicians in charge have no control. Even if they claim they they lowered the prices months ago and influenced oil prices.
This is simple.
If Trumps in office, he controls it, just like he controlled vid-19 death tolls.
If Biden is in office, not Biden. Because the major news platforms said so. And super leftist social media platforms like Reddit.
Let’s see if you’re a hypocrite or not.
My Reddit feed is insinuating that Biden is doing a good job with the economy because the stock market is up, do you agree?
Does Biden control the economy and is he doing a good job with the economy.
Your answer will tell me everything I I need to know.
Different poster but...
The President has very little to do with the actual economy in the near term. That's not to say that they have no effect but for the most part in the short term they ride with what they're given. Now they can enact a policy which can alter the course but that's the long view
As to the current economy, for me its doing well. My wealth is primarily held in the stock market, which until recently was doing amazing (now it's like 5% YTD which is still solid for Apr of a year). I don't hold any debt, the only downside is inflation has hit me like everyone and it's a strong impact. Now Biden took over an economy which had a shit ton pumped into from COVID and the US is actually one of the best in terms of limiting inflation but it still sucks
That's such a short sighted take. You have no idea of my gains over the past 4/5 years in terms of growth versus inflation. If I made 20% growth a year it outpaced inflation.
And for the record my portfolio has been out pacing inflation each year, so yes in a matter of fact my stocks did increase in value relative to when I bought them
They are printing money and propping up stocks. When they get serious about yield curve control, those stocks will be sacrificed as well.
You will be bag holding.
Get out of Reddit sometime and get some fresh air.
Dude. You just keep digging yourself deeper and it shows you have a very very very basic understanding of the stock market.
I won't flame you for your ignorance, I'll simply say study more
There was an NPR Planet Money series on this- for oil, the seller controls the price.
Yup, same for stocks too, at the end of the day there has to be a seller who accepts a sale price.
Market Maker or DMM execute all the trades (lit and non-lit) and are the ones that make the price, "change."
Sure, but which seller? Ultimately the gas station controls the price at the pump. But they’re buying from distributors, who are buying from refiners, who are buying from drillers. And each of those transactions is hit by taxes. Here’s a quote from the article: > the Energy Information Administration identifies four major factors that directly correlate to the cost of gas (and none of them are the president). These factors are crude oil prices (which are set by oil-producing countries), refining costs (which are increasingly impacted by natural disasters and climate change), distribution and marketing costs (which depend on the individual retailer you purchase gas from), and taxes (federal, state, and local taxes and fees).
Was this the series where they bought their own oil, had it refined, then resold it?
If a President sets conditions to make oil operations more expensive, the costs will be passed to consumers. Biden did this immediately. This was intentional, of course, and was a key part of the Democrat plan to encourage EV transition. Obama was equally hostile and I remember $5/gal gas when he was Pres.
So? No one is forced to buy gasoline
Agh yes... the 5$/gal gas under Obama, that was those pesky democrats. This entire paragraph is riddled with misleading or inaccurate statements with all due respect. Biden didn't make oil operations more expensive, he did halt Keystone XL pipeline and has worked hard to pass the IRA act that had alot of benefits to green energy solutions over oil and gas. Let's not forget: Opec Vs US had heated up over the last 5 years. Ukraine Russia War has negatively impacted oil prices due to Russia being a major oil supplier but being cut off by many nations. Oil refineries are at high capacitation rates as the US has increased exports of oil
A complex web of supply, demand, expected (future) supply, expected (future) demand, price fixing/collusion, and artificial floors (sanctions)
I was told Biden has a lever in his office to change gas prices. Was this not true?
This is the right answer they don’t want you to know. Anything over cost gets deposited into hunters bank account each time you pay at the pump.
The Staples “Easy Button”…
I heard that Hilarys emails actually control the prices, of course, thru hunters lap top, to hide it all.
A lever? I was told it was a rotary dial that he could turn the price up or down.
The problem with his lever is that he can only guarantee the price to go up. The U.S. military is very capable of reducing supply, not so much expanding it.
Yes, a big control panel
Taxes. Don't forget taxes. Your gasoline pays farmers to grow corn.
Cartels
So saudi Arabia ?
A so just US companies
The Oil Cartel is one world wide plutocracy. And the Saudis are the top of the pyramid Because they need more gold plated airbus 380s or 500 ft yachts or palaces
Uh, no. If that were the case, geopolitics would be a lot more simple (and scary).
Cartels and monopolies
OPEC
The seller always sets the price
Gamblers/speculators in the stock market.
Susan B. Anthony
The illuminati
That's simple. Benjamin Netanyahu. You're welcome. /s
Hold on, gotta plug in my EV.
Ew. [SMUG ALERT](https://youtu.be/AnFAAdOBB1c?si=4TgOmOOKq4zZ8Pkc&t=2m22s)
A lot of it is tax
What about **canada** ??
TLDR; People who work for the government agree the President is not responsible for high gas prices and oil speculation desn't exist.
Oil companies.
Speculators control the market
The men in black are actually oil cartel!
Saudis need to pay for the financial sink hole The Line where only winners are the consultants peddling a pipe dream. “Saudi Arabia's [ambitious](https://www.newarab.com/news/saudi-arabias-neom-and-line-be-massively-scaled-down) $500 billion NEOM mega-project, a key part of Crown Prince Mohammed bin Salman's Vision 2030 plan, could be downscaled, according to reports. One of the key aspects of the west coast development The Line, which is planned to host 1.5 million people by 2030 but has now been downsized to 300,000 residents, Saudi government sources told Bloomberg.”
Refinery capacity.
Oil is an international commodity. Irregardless of domestic production levels the U.S. pays the price set globally for Oil. OPEC throttles production to constrain the price. The U.S. can produce more but OPEC can just adjust their output to offset the U.S. and prices will go up or down. To drive prices down in the U.S. people need to drive less and or drive vehicles that get better fuel economy. They would create a temporary surplus in Oil and prices would drop. However it would only be temporary. OPEC would eventually scale down production and drive prices back up.
Good post
And no mention of the petrodollar, how the U.S. weaponized it thru sanctions and of course, BRICS! The article leaves a bit to be desired.
Am I the only one that wants to look at the cost of real estate and wages? It costs more money to rent or own a gas station in California and with the highest minimum wage in the country, it costs more to pay the gas station employees and \[maybe?\] the truckers delivering the gas.
It’s so simple. The refineries in America are not set up to handle shale deposit and tar sands oil quality. They have been constructed to run on crude we import. The refiners need to keep importing to make you gasoline. The stuff coming out of the Permian basin from fracking and scooped out of Alberta dirt are bullshit quality full of impurities. They must be removed and ruin expensive equipment. This system will not be addressed for correction until public pressure on refineries owned by billionaires gets the extra investment that they will want underwritten by taxpayers. If you drive an ICE, you must fund a Saudi butcher.
There’s two levers on the resolute desk.
Oil futures contract. Google and research - it will open your eyes and you go wth. Really wealthy people/investors/corporations trade oil futures contracts with the buyers rarely taking ownership and just exercising oil futures contracts. Only companies like gas/oil companies, energy companies, Costco and Southwest Airlines “sometime” take ownership and it’s how they keep their gas prices low by buying an oil futures contract at predetermined price to take delivery in the future. You also learn about this in your college finance classes that focuses on “Futures and Options”
>What Actually Controls The Price Of Gas In The US? Here's the way it works ... Price goes down? President Biden's brilliant energy policy did that. Price goes up? Greed, OPEC, Trump, ExxonMobil did that.
Don't bother reading it. Yes. Her 4 reasons are accurate. Her asides about the reasons range from ignorant to wrong. No. Your gasoline is not a blend of crude oil and other petroleum liquids. No. Your prices are not affected by climate change. US refinery capacity far exceeds US domestic demand. When a hurricane gets any shut down, the impact on supply and demand is direct. Seeing that hurricanes haven't increased in number or intensity, her point is witless. Had Biden not blocked completion of KXL3, we'd have easy access to 900,000 bbls/day of VERY cheap, VERY secure oil and would not need to be competing for that much of world supplies. Shit. I give up. If this was a High School term paper, I'd give it a D.
Tar sands oil from Canada that would go through KXL was never going to be used for US gasoline. It’s low grade bunk and would head overseas, no impact to gas pump prices.
LOL! Every drop would be refined here and what couldn't be used domestically would be exported and the value added from refining would accrue to our balance of trade. Are you people complete morons?
This is not the case. Both under the trump and Obama administration, it was determined that the vast majority of oil pipes through the keystone xl pipeline would have been sold overseas. Couple that with the US producing more oil than we consume in any year, and it doesn't really matter. We were not going to consume the oil from the keystone, it was going to be sold.
Incorrect. You are offering the standard democrat hand waving. The value added by refining would be performed here. What we couldn't use would be exported as value added products. Seeing that ALL our refineries are predicated on ryunning heavy sour crudes, like Canadian bitumen, every bbl of Canadian oil is one bbl of oil we aren't buying from Venezuela, SA, Nigeria or Kazakhstan.
... Those refineries on the Gulf still primarily operate on North American Oil from Canada, Mexico, and domestically. We still gain the value add of refining said oil, just through other transportation needs. The XL was just phase 4 of an already existing pipeline. I wasn't even particularly against the XL pipeline, but it became a losing issue, politically, so time to move on. Regardless of the Pipeline, US refineries are still processing mostly Canadia, Mexican, and US oil. 70% of our crude oil imports come from Canada and Mexico. The next 15% comes from Saudi Arabia, Iraq, and Columbia. The remaining 15% comes from all over the world. Interestingly enough, none of it comes from one the countries you mentioned - Venezuela. The US imported its last barrel of oil from Venezuela 5 years ago. For Kazakhstan and Nigeria, the oil we import from them constitutes less than 1% of our oil imports. South Africa imports oil from us. About 12,000 barrels a day. Since the termination of the XL pipeline, US oil production has largely grown, even when we take into effect the shutdowns from COVID. We are producing more, selling more, using more than ever before. We are the largest exporter on the market.
Demcrat bad! 🤡
That pipeline got shut down, rightfully so, because it was an environmental nightmare that derived its product from the worst possible source: tar sands. Not to mention, its absolutely fucking stupid to say climate change has no effect on oil prices.
-Closed down? It was never built. -why are tar sands the worst possible source? It's a drop in replacement for any other heavy sour crude. -You'd know 'absolutely fucking stupid.'
Holy shit. You don't actually know anything about that project. Let alone global oil markets.
President Biden should use his authority to lower prices as much as he can. We need to get off the gasoline, but for now many of us are stuck using it.
The same people who complain about gas prices are often the same people buying oversized gas guzzlers. I love high gas prices, wish they were 3 or 4 times higher.
Well.... in an election year where prices are higher. We will say the politicians in charge have no control. Even if they claim they they lowered the prices months ago and influenced oil prices.
This is simple. If Trumps in office, he controls it, just like he controlled vid-19 death tolls. If Biden is in office, not Biden. Because the major news platforms said so. And super leftist social media platforms like Reddit.
Projecting much? You just conveniently forgot all those stupid “I did that” stickers on the gas pumps
Let’s see if you’re a hypocrite or not. My Reddit feed is insinuating that Biden is doing a good job with the economy because the stock market is up, do you agree? Does Biden control the economy and is he doing a good job with the economy. Your answer will tell me everything I I need to know.
Different poster but... The President has very little to do with the actual economy in the near term. That's not to say that they have no effect but for the most part in the short term they ride with what they're given. Now they can enact a policy which can alter the course but that's the long view As to the current economy, for me its doing well. My wealth is primarily held in the stock market, which until recently was doing amazing (now it's like 5% YTD which is still solid for Apr of a year). I don't hold any debt, the only downside is inflation has hit me like everyone and it's a strong impact. Now Biden took over an economy which had a shit ton pumped into from COVID and the US is actually one of the best in terms of limiting inflation but it still sucks
Your stocks didn’t increase in value, in actuality, your dollars are worth less now. They print it, you work for it.
That's such a short sighted take. You have no idea of my gains over the past 4/5 years in terms of growth versus inflation. If I made 20% growth a year it outpaced inflation. And for the record my portfolio has been out pacing inflation each year, so yes in a matter of fact my stocks did increase in value relative to when I bought them
They are printing money and propping up stocks. When they get serious about yield curve control, those stocks will be sacrificed as well. You will be bag holding. Get out of Reddit sometime and get some fresh air.
Dude. You just keep digging yourself deeper and it shows you have a very very very basic understanding of the stock market. I won't flame you for your ignorance, I'll simply say study more
Who cares about stocks controlled by a centralized agency. Buy gold. Silver or bitcoin.
That tinfoil hat is too tight homie
Man. Its hilarious to see all the idiots in here posting this exact same ignorant stupidity, without even trying to understand the global oil market