You can see prices dropped hard in 2014-2015 after OPEC countries increased production in response to competition from the US, Canada, and elsewhere. It worked, too, hurting many “frackers” and reducing production.
Prices climbed back then dropped hard again when COVID struck. Then they trended sharply higher through 2021 before a near vertical rise when Russia attacked Ukraine.
Most recently we see a sharp downturn that brought US retail gasoline roughly back where it was before the war. But that still leaves consumers paying about the same as a decade ago, and quite a bit more than in 2015-2019… OVER 200+% MORE THAN 2 YEARS AGO…
But here is another twist: Newer vehicles tend to be more fuel-efficient. Some motorists could be spending more per gallon but less overall.
Meanwhile electric vehicle owners have traded gasoline price exposure for grid power exposure.
Looking only at the pump price doesn’t capture the whole picture.
Thank you John Mauldin and Mauldin Economics!
Thank you John Mauldin and Mauldin Economics!