What Trump says about the price is gas at the pump is vintage Trump trickery. He depends on voters’ignorance to explain away why what you see and feel does not resemble his version of the truth. He tells you that the US has plenty of oil, so it makes no difference if the Hormuz or Red Sea oil shipments are blocked, and you wonder why, when you fill up, the price immediately reflects the threat of closing either. He is talking about supply, but at the same time, we are paying more to fill up. Yes, we will not have a shortage, but the price per barrel is not in his control. Foreign cartels set the price based on worldwide supplies on that day. If a shortage in supply elsewhere in the world happens, we get the price hike regardless, even if we have no change in supply. The president can release strategic reserves or reduce federal taxes that fund highway improvements,..but if there are no strategic reserves in the tank…that is useless, and the improvement funds are obligated for a year or two; that one doesn’t help soon either. In short, Trump is fibbing and fooling and hoping you do not catch on.
So why do prices rise in the US too? Because our US oil producers sell on the world market and they want the same high price that everyone else in the world sells their for.
The US strategic reserves are the lowest now since 1983.https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCSSTUS1&f=M
https://www.investopedia.com/articles/investing/081315/opec-vs-us-who-controls-oil-prices.asp
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