The tempest of surging gasoline prices is calming down and American drivers are soon in for a break.
There's four reasons this is happening.
1) President Biden had a chat with Chinese President XI Jinping a couple of days ago and the subject was about releasing millions of gallons of oil on the market.
Bjornar Tonhaugen, head of oil markets at the consultancy Rystad Energy, reported that the biggest factor driving prices right now is the expected release of strategic reserves from the US and China.
2) OPEC is also steadily ramping up output.
3) This week West Texas Intermediate futures, the US benchmark for oil prices, and Brent futures, the global benchmark, are now trading at their lowest levels in six weeks on signals that supply constraints could begin to ease soon.
4) In the United States, prices fell sharply yesterday after oil inventories at a key hub in Cushing, Oklahoma rose for the first time in weeks.
Needless to say this is good news for the whole country. That includes President Biden and the Democratic party which has been hammered by the far right for the high gas prices lately.
There's no doubt that Republicans will continue to try and make gas prices a wedge issue, but the facts will soon destroy that fiction as the prices go down.
Finally I think kudos are due for President Biden whose diplomacy is getting us through these tough times.
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