Oil

The 1973 Oil Crisis

45 years ago this week was the start of the oil crisis. But has America learned much in that time? It's debatable.

High gas prices are a bigger problem then folks want to admit β›½

In the past month, the price of gasoline has risen substantially. However, it’s quickly pointed out that gasoline now constitutes a smaller portion of families’ budgets when compared to fifty years ago. The impact of these higher prices is often more psychological, as we tend to be more aware of the prominent gas station signs as we drive around town.

What’s frequently overlooked but crucial to understand is the significant role psychology plays in the economy. Even if gas prices are lower than they were a year ago, our attention tends to be fixated on recent fluctuations. We have a tendency to give more importance to what’s right in front of us rather than considering the broader context of our personal or business finances.

Although the direct consequences of elevated energy prices have been mitigated by better technologies and strategies adopted by families and businesses, one particular statistic that stands out for everyone is the price of gasoline. High gas prices provide a rationale for manufacturers, retailers, and even small businesses to push for higher prices, even if this is primarily a tactic to increase profits and wages.

This scenario presents a notable political dilemma for those in power, especially for Democrats on a wider scale. While they express genuine concerns about climate change and environmental preservation, this stance contradicts the objective of ensuring a consistent supply of affordable gasoline.

NPR

OPEC makes deep oil output cuts sought by Saudi Arabia and Russia, snubbing US : NPR

The OPEC alliance announced a 2 million barrels a day cut in oil production Wednesday — an amount that could drive oil and gas prices back up after weeks on a downward trend.

The meeting of the 24 OPEC oil-producing countries, including Russia, comes at a time when much of the world is already battling soaring energy costs. A supply cut will also exacerbate tensions between Saudi Arabia and the U.S., where President Biden has been trying to rein in prices at the gas pump ahead of the midterm elections.

The White House called the decision "shortsighted" and said in a statement the administration would "deliver another 10 million barrels from the Strategic Petroleum Reserve to the market next month, continuing the historic releases the President ordered in March."