Looking at gas prices rise to near or over $3 per gallon is disheartening for Americans. It wasn’t but a few months ago that we were enjoying some of the lowest prices we’ve seen in decades. It certainly helped our pocketbooks and improve the economy somewhat. When gas prices are lower, everyone saves a bit more money. That is, except Wall Street.
It’s all about supply and demand…or so they say. Every year, they predict that summer gas prices are set to rise as we enter peak driving season. Families are going on vacations and longer trips during the summer months. While that’s historically true, something else has been happening. Wall Street investors have been jacking up the price.
They love to use fear to cause panic in the oil industry. They’ll talk about wars in the Middle East, pipeline concerns, and even an increased demand. But that only gets the so far anymore. The supply of oil has actually been increasing. Cars are becoming more fuel-efficient, yet we keep pumping out a lot of gas. Even the United States has become one of the larger producers of gas during Trump’s presidency.
How Wall Street Manipulates Gas Prices
You see, Wall Street investors only make money on oil and gas when the prices go up. It’s like stocks. They buy early and hope the numbers pump up so they can get value from their investment. When prices are lower, they’re not making their money. So, they create a fake panic or fears that there’s a shortage.
In reality, that’s a farce. As already explained, there’s more than enough oil supply in the world. When they start talking about potential $4 gas prices, that is intended to get people to buy, driving up demand. Of course, Wall Street desperately wants $4/gallon gas, even though it was hurt nearly every other sector of the economy.
They use economic fears, like the situation in Venezuela or decide that Russia is going to clamp down production. It seems as if anyone coughs in the Middle East, it’s time to up gas prices. It doesn’t matter if it legitimately impacts oil production or not, all in the name of profit. The weakening Chinese economy is another fear they hope will drive up prices.
What to Expect this Summer
Despite Wall Street peddling out fake news and stoking fears, the rise we’ve seen in price over the past few months is unsustainable. There is just way too much supply. If there was indeed a shortage, then yes, their fears would work and the prices would remain high. The difference is reality hits and the amount of oil really dictate the price we pay.
Even though there are fears about a war with Iran and Venezuela, one group, the Energy Information Administration, says gas prices will probably go down this summer. In fact, they predict that the price of gas this summer will be lower than it was at this time last year. They’re predicting around an average of $2.76, lower than the current average.