Something is bothering me- Why have gas prices really dropped?
🗣️ DISCUSSION 💬
It makes no sense afaik, unless Patriots are in control and something devolution-like is going on. Let's hear it peeps.
Partly seasonal...fewer people are driving, the economy is worse than the White House will admit so fewer trucks are moving, Biden is quietly moving oil from our strategic petroleum reserve to be refined.... any number of reasons.
But one reason you can actually LOOK for is to watch the interstates on any Thursday. That is historically the day that is heaviest in truck delivery traffic. If you observe fewer trucks on the interstates on a Thursday, that is an indication of the real economic activity. Fewer trucks, less gas / diesel consumption.
Less people flying is also a major reason for extra supply being available. I've read once that air/rail/OTR trucking account for 90% of transportation fuel consumption.
Entirely possible, but one thing a lot of people don't know is refineries usually make many different products. They could make gas, diesel, airplane fuel, asphalt, naphtha, propane, butane, fuel oil, kerosene, wax, tar, coke, other oils, and various other chemicals used in petroleum products. What they make depends on the crude they use, and the price points of the products they produce (among other things). If gas is higher-priced than jet fuel you can bet they will produce more gas.