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IPFS News Link • Oil

The Temporary Reprieve

• by Eric

For now.

Outside of California, most of us are "only" paying about $3.60 or so per gallon  . . . for the moment. The idea being to get people to focus on that rather than on what they were paying before the Biden Thing came to town, when regular unleaded cost around $2.25 per gallon. When gas was getting cheaper because more oil was being produced.

Gas is now "cheaper" – so to speak – because more oil is being released.

The difference is important.

More oil being produced means lower prices resulting from an increase in supply. More oil being released – as from the Strategic Reserves – means a temporary (and unsustainable) increase in supply and an artificially induced lowering of prices that cannot last long. The hope – of the things behind the Biden Thing – is that they will stay lower for just long enough.

And then, they will go up.