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Can one of you Leftists explain this?

atlkvb

atlkvb

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I don't watch Left wing media, but many of you do so here's my question:

Trump said tonight during his national address that we have plenty of our own oil, and don't need oil from Iran coming through the straight of Hormuz. So why is our gas still so expensive, especially since we're ostensibly also getting oil now from Venezuela? This is the only part of his speech I didn't get. If we don't need Iran's oil, and don't really need the straight of Hormuz opened up, why aren't we using our own oil then to get these gas prices down?

I'm sure some Left wing news sight has explained this, so can you tell us what they're telling you? I'm a huge Trump supporter, but he's lost me on this. That gas is crazy expensive now, and if we have our own ample supplies, why is this so?

Can anyone of you bots explain this? :unsure:
 
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DvlDog4WVU

DvlDog4WVU

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atlkvb said:
I don't watch Left wing media, but many of you do so here's my question:

Trump said tonight during his national address that we have plenty of our own oil, and don't need oil from Iran coming through the straight of Hormuz. So why is our gas still so expensive, especially since we're ostensibly now also getting oil now from Venezuela? This is the only part of his speech I didn't get. If we don't need Iran's oil, and don't really need the straight of Hormuz opened up, why aren't we using our own oil then to get these gas prices down?

I'm sure some Left wing news sight has explained this, so can you tell us what they're telling you? I'm a huge Trump supporter, but he's lost me on this. That gas is crazy expensive now, and if we have our own ample supplies, why is this so?

Can anyone of you bots explain this? :unsure:
Click to expand...
Gas prices are based on oil prices. Less total supply in the market, means that people are going to be buying our oil and the price is going up as a byproduct of demand. Also, it’s a futures based commodity. downstream effect is higher gas prices at the pump.
 
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atlkvb

atlkvb

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DvlDog4WVU said:
Gas prices are based on oil prices. Less total supply in the market, means that people are going to be buying our oil and the price is going up as a byproduct of demand. Also, it’s a futures based commodity. downstream effect is higher gas prices at the pump.
Click to expand...
I get that part, but Trump said we don't even need Iran's oil, matter of fact he did invite other countries to buy ours instead! So if we have that much of our own supplies available to offer on the world market, why are we paying so much more for own gasoline?

What about all those additional supplies from Venezuela, why isn't all that oil helping to lower our gasoline prices? :unsure:
 
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EER_Nation

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DvlDog4WVU said:
Gas prices are based on oil prices. Less total supply in the market, means that people are going to be buying our oil and the price is going up as a byproduct of demand. Also, it’s a futures based commodity. downstream effect is higher gas prices at the pump.
Click to expand...
This. Oil prices are determined by global supply and demand rather than our own production levels. Also, companies are not going to sell their oil for less than the market rate. If I have a barrel for sale and someone offers me $80 vs market rate of $105 - who am I going to sell it to?
 
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Gunny46

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atlkvb said:
I get that part, but Trump said we don't even need Iran's oil, matter of fact he did invite other countries to buy ours instead! So if we have that much of our own supplies available to offer on the world market, why are we paying so much more for own gasoline?

What about all those additional supplies from Venezuela, why isn't all that oil helping to lower our gasoline prices? :unsure:
Click to expand...

Without Trump’s oil policy leading up to Iran the price would be a lot higher now. The answers others gave are good as there's several reasons that are correct.

The CCP was getting cheaper oil from Venezuela and Iran as they had gotten those countries indebted to them. That's coming to an end.

If you are getting at is there some price gouging going on here taking advantage of the situation I would say there's some of that. The good news is it's short term pain for long term gain. Imagine how much it would have been if Harris was in charge next year and Iran was attacking everyone in the Middle East instead of what’s happening now.
 
atlkvb

atlkvb

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Posters ITT offered some fairly accurate explanations to my OP...found this article also adding some interesting perspective on actual prices at the pump.

America Produces The Most Oil. So Why Are Gas Prices Surging?

excerpt:
the national average price of gasoline has climbed by nearly $1.00 per gallon over the past month—one of the fastest increases in decades. Why prices jump before “cheap” gasoline is sold—comes down to replacement cost.

Gas stations aren’t pricing what’s already in their tanks; they’re pricing what it will cost to replace it. Retail fuel is a low-margin business, and station owners have to think about their next delivery, not their last one. If wholesale prices surge and they keep selling at yesterday’s levels, they risk not having enough cash to refill their tanks. So, prices adjust quickly. It may feel unfair, but from the retailer’s perspective, it’s a matter of staying solvent in a volatile market.

It’s a well-documented economic phenomenon known as “rockets and feathers,” studied extensively by economists like Severin Borenstein.

The idea is simple: prices shoot up like rockets when costs rise but fall like feathers when costs decline. Part of that dynamic comes from the structure of the market, but consumer behavior plays a surprisingly important role.....
When prices are rising rapidly—sometimes by 10 cents a day—consumers become highly sensitive. They search aggressively for the cheapest station and often rush to fill up before prices climb further. That surge in demand and heightened competition forces retailers to move prices up quickly to keep pace with rising replacement costs.

When prices begin to fall, however, that urgency fades. A few cents’ difference between stations no longer feels worth the effort, and consumers become less aggressive about price shopping. With less competitive pressure, retailers lower prices more gradually. The result is the same pattern drivers have noticed for years: sharp increases followed by slow, uneven declines.

*It's actually that last part I hadn't totally weighed into the equation. Consumer behavior as much as market supply and demand drive these prices spikes, as well as their slower recoveries. Even being in the automotive retail business, I should have realized the impact price elasticity would have on daily consumer purchases for gasoline, but retailers only respond to price pressures when there's a chance of losing their market share, not necessarily ready access to supplies.
 
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WVUALLEN

WVUALLEN

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The U.S. leads the world in oil production, but oil isn’t priced locally, nor are prices set by oil companies. Because the U.S. exports oil to the global markets, it’s priced globally by traders bidding for oil. That is a distinction many people do not realize.

People like easy answers, such as “corporate greed.” That is emotionally satisfying, but it doesn’t tell the full story. What’s happening is a function of global markets, supply chain realities, and predictable patterns in consumer behavior. In fact, much of what we’re seeing is exactly how the system is designed to work.


Editors' Pick
BusinessEnergy

America Produces The Most Oil. So Why Are Gas Prices Surging?​

ByRobert Rapier,
Senior Contributor.
Robert Rapier is a chemical engineer covering the energy sector.

Follow Author
Mar 20, 2026, 12:34pm EDTMar 20, 2026, 02:11pm EDT

5
Oil Prices Rise As War In Middle East Continues

LOS ANGELES, CALIFORNIA - MARCH 03: High gas prices are displayed at a downtown Chevron station on March 3, 2026 in Los Angeles, California. The average price of one gallon of regular self-service gasoline rose to $4.72 today in Los Angeles County amid widening war in the Middle East. (Photo by Mario Tama/Getty Images... More
Getty Images
Gasoline prices continue to surge. Drivers saw increases of roughly 50 cents per gallon almost overnight following the outbreak of hostilities with Iran. According to AAA, the national average price of gasoline has climbed by nearly $1.00 per gallon over the past month—one of the fastest increases in decades.
It feels like a ripoff, and for many Americans, the same questions come up every time.
If the United States is the world’s largest oil producer—in fact, if we are energy independent—then why are we still at the mercy of global events? And how can prices spike instantly when the gasoline in the tank was made from cheaper oil weeks ago?

People like easy answers, such as “corporate greed.” That is emotionally satisfying, but it doesn’t tell the full story. What’s happening is a function of global markets, supply chain realities, and predictable patterns in consumer behavior. In fact, much of what we’re seeing is exactly how the system is designed to work.
Frase By Forbes

America Produces the Most Oil—But Doesn’t Set the Price​

The U.S. leads the world in oil production, but oil isn’t priced locally, nor are prices set by oil companies. Because the U.S. exports oil to the global markets, it’s priced globally by traders bidding for oil. That is a distinction many people do not realize.

Think of the oil market as a single, interconnected system. When supply is threatened anywhere, prices respond everywhere. And few places matter more than the Strait of Hormuz, a narrow passage through which ~20% of the world’s oil flows. When that chokepoint is at risk, traders price in the risk immediately.
That’s why a barrel of oil in Texas suddenly becomes more expensive even if nothing has changed domestically. U.S. producers sell into global markets, so American refiners have to match those prices or lose supply. Being the largest producer doesn’t shield us, it simply means we are deeply embedded in the same global system.
 
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