Europe has caved to the Trump administration blackmail and agreed to release 100,000,000 gallons of diesel fuel and crude oil.
That sounds like a win for Trump, but, in my opinion, this is going to backfire. First of all, let’s do some math. If this was all just diesel fuel, it would be less than a one month supply for the US.
Europe as agreed to release a substantial amount within the first 20 days. So let’s say they release half of that, 50,000,000 barrels, all diesel. That would be the equivalent of about 10 days or less worth of the needs of the US.
Economist believe that would result in a possible 25 cent reduction at the pump. So we’re going to go from $6.50 a gallon to $6.25 a gallon. I doubt very much that’s going to help most truckers, Maga members with gigantic diesel pick ups, farmers, ranchers, or anybody else.
I hate to make predictions, but I’m going to make one right now: People who use diesel, especially people who purchase a lot of diesel, are buying the bare minimum they can afford to buy. The instant price drops, even a little bit, they’re going to buy as much as they can hold because they’re gonna be afraid the price is gonna go back up.
That will put upward pressure on the market, and I believe that the cost of diesel will actually increase after this move by the Europeans.
there might be a minor fluctuation initially, but let’s be realistic, the math just does not hold up in this.
French President Emmanuel Macron has given Trump what Trump won, a headline that he can use on true social. I think even Maga is no longer falling for that nonsense.
This is one of those stunts that the right wing loves to pull, especially Trump, but it’s not going to work because people who have not been buying diesel, at least not in the capacity they normally would to jump at a chance to even save a small amount of money and they’re going to buy more than they would have purchased between now and election day.
again, I hate making predictions because the world is so obviously complex. But this just seems like a no-brainer to me. How releasing what amounts to less than a month of diesel, and it’s not even all diesel, over a four month period, it’s gonna somehow magically bring prices down before election day is just idiotic.
But then again, it’s a Trump scheme, so that tracks.
~SG
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