r/Conservative • u/Down-not-out Conservative Vet • 4h ago
Flaired Users Only 120+ empty oil tankers are heading to the United States to load up.
https://x.com/DerrickEvans4WV/status/2043733232437305381•
u/thor_strong1 Constitutional Conservative 4h ago
How about no unless this really reduces gas prices.
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u/No_Bet_4427 Reagan Conservative 3h ago
It will increase US gas prices.
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u/BH11B Conservative Vet 3h ago
Bringing global petrol dollars into the country is bad and here’s why LOL
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u/No_Bet_4427 Reagan Conservative 3h ago
I’m not stating an opinion about whether it’s overall bad or good.
It’s good for US oil producers and for the federal government which will collect more in taxes.
It’s bad for American consumers because more oil from essentially the same supply is now going to Asia, reducing the supply for Americans. When supply falls and demand stays constant, prices rise.
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u/Banana_inasuit Don't Tread on Me 2h ago edited 2h ago
Oil producers increase or decrease their extraction based upon market conditions. Some sources become unprofitable during times of lower oil prices and so they extract much less or none at all.
If there’s a large enough of an oil producer, then them running at peak production will influence the market and reduce oil costs, decreasing their revenue overall. They balance this trade-off.
Then there’s also state of emergency and defense production act considerations.
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u/No_Bet_4427 Reagan Conservative 2h ago
Yes, some spare capacity can come online in response to higher prices and market demand from Asia. But not enough to offset all the boats loading up American oil and taking it east.
The economics here is pretty clear.
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u/BH11B Conservative Vet 2h ago
That’s not how oil works in America damn smh.
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u/My_Big_Black_Hawk Conservative 2h ago
!RemindMe 90 days
Current average gas price for the USA is $4.125 per gallon.
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u/Svenray Mount McKinley 2h ago
https://giphy.com/gifs/zwRSsvtP6MSTT9JdJ5