Oil Prices Dip This Week

Oil prices posted declines this week trading near $100 a barrel, and even dipping below that mark for a short period of time.

Kelly Just with AAA-Washington says there were several reasons behind the drop.

“So, not only have Russia and Ukraine separately said that progress is being made in their talks that are continuing today, but also China has had a surge in COVID cases and has locked down several cities of about 1.5 million people. And so, their demand has dropped as well.”

Just added while the United States does not use much crude from Russia, the embargo is pushing prices on the open market higher, so what the U.S. purchases is going to cost consumers more.

However, Just says the price you pay at the pump is not only determined by the price of crude, but also when that station receives that refined fuel. “So, even if the price of crude continues to drop, your local gas station may have received a shipment when prices were the highest, and so they’re going to charge you that until they receive a shipment where the price is lower for crude. So, it’s not something that can happen overnight.”

The Biden Administration says it plans to release oil from the strategic petroleum reserve, but when has not been announced. In addition, the amount of oil to be released Just noted will not have a significant impact on what U.S. consumers pay.

Related articles

Tuesday, November 29th, 2022 Video and Audio Program

On today's show, Jesse Allen is broadcasting live from the Tar Spot Summit hosted by AgReliant Genetics. We learn about some of the latest research into Tar Spot with Dr. Marty Chilvers of Michigan...

Monday, November 29th, 2022 Video and Audio Program

On Monday, we saw a mixed trade to start the week with soybeans higher and wheat under pressure. We discuss the market moves with John Heinberg of Total Farm Marketing. Learn more at https://www.totalfarmmarketing.com. https://www.youtube.com/watch?v=-_siRu_CPL8 Also,...

Biden Asks Congress to Help Avert Potential Rail Strike

On Monday, President Joe Biden issued a statement which called on Congress to step in and avert a potentially devastating U.S. rail strike. The strike, which could happen as early as December 9th, would...

U.S. Threatens Legal Action over Mexico’s GMO Corn Ban

During a meeting on Monday between Ag Secretary Tom Vilsack and Mexican President Andres Manuel Lopez Obrador, Vilsack mentioned that legal action against Mexico’s GMO corn ban in 2024 was on the table. Read more...

EPA Expected to Propose RFS Targets This Week

The Environmental Protection Agency this week is expected to finally propose renewable fuel volumes for 2023 and beyond, following months of delays. EPA has until Wednesday to propose RFS volumes under a consent decree with...

Latest articles

%d bloggers like this: