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You really think gas prices are going down because the government is selling off reserves? You really think that is the difference maker here?
by MaxDPS 4y ago
You really think gas prices are going down because the government is selling off reserves?
You really think that is the difference maker here?
- ibeckermayer 4y agoYes, that's the entire purpose of the sell off. Supply went up while demand stayed the same, which causes the price to go down.
- throwaway5959 4y agoNo, but that’s a convenient excuse that lines up with their ideology.
- crocwrestler 4y agoWhy did it go down? Demand destruction? Recession fears?
- relativ575 4y agoYes, that is the idea: https://home.treasury.gov/news/press-releases/jy0887 https://home.treasury.gov/news/press-releases/jy0887 If you think you have a valid counterpoint, feel free to elaborate.
- rco8786 4y agoI don’t really have a dog in this fight, but how does this square up with prices in Europe also dropping?
- josephcsible 4y agoBecause gas is fungible. Since we're burning our reserves, we're importing less than we otherwise would, and from there it's basic supply and demand.
- MaxDPS 4y agoYour own source says you are wrong. The price of a gallon of gas has dropped by almost a dollar according to the article in this post. Your own link says: “As shown in the table above, our analysis suggests that President Biden’s historic SPR release, in coordination with IEA partners, lowered the price of gasoline by 17 cents to 42 cents per gallon, with an alternate approach suggesting a point estimate of 38 cents per gallon.” So, even their most generous estimate doesn’t support what you are saying. And that’s assuming that the price of gas wont drop any further (it will).