American Thinker: While we weren’t watching, the price of oil more than doubled from its low early in 2016. Volatility of that kind is not unusual. A look at the 70-year chart shows that there have been eight times when oil prices have doubled or tripled in a brief timespan during those seven decades, nearly always sending the economy into a recession.
Fortunately, the run-up in oil prices has begun to stall – partly, I believe, as a result of increased U.S. production supported by the Trump administration. Thank goodness we have Donald Trump in the White House. Without him, we would be heading toward another recession.
The recent doubling of oil prices may not have a decisive effect, and may soon be reversed as a result of increased production, but oil still has the power to slow the economy. Over the past 20 years, while average household spending on gasoline alone has fluctuated between about 2% and 4%, other energy costs, including home heating and the cost embedded in the price of transporting goods and services, constitute a bigger share. And in the past, exogenous events such as the Arab oil embargo of 1973-74 had devastating effects on the U.S. economy.
The solution is energy independence. President Trump understands the importance of increased domestic oil and gas production. During his first year in office, he took important steps to spur domestic energy production, and there is clear evidence to show that his policies are working. That bottom line is increased production – at 10 million barrels per day – and more jobs in the energy sector. According to rigzone.com, U.S. oil and gas jobs increased by 5,000 in January 2018 alone, and 2018 “started with a sense of industry optimism.” MORE
He’s also marveled at Oregon’s volunteer “pay by the mile” program. Eff that.
$30 was definitely not normal, due to a glut and lack of demand. But $40-50 should be typical and I would expect more stability now that there is excess global capacity thanks to USA increase over the past decade. I would say that’s even without Trump, although 0bama sure has done all he could to cripple it.
@LeftCoastDan – Under Trump and in only 1 year, the US is becoming an energy exporter, upsetting the balance of power in gasoline (Arab states) and natural gas (Russia).
This would not have been possible under any other president.
I have always been flummoxed why, when Arabs cut off our gasoline supply and threw the US into a deep recession, our response was to REDUCE our oil production and rely more heavily on imports. Shows how corrupt our government was even then.
I still want to know who bought up all the oil futures contracts in the spring and summer of 2008 and drove it to $159 a barrel. I believe the price spike that summer lead to the mortgage crisis and BHO.
I money is on Soros, Buffet, and the Saudis. That was a coordinated attack on our economy.