Government Watch / Politics / We The People

Russia Can Send Gas Prices Through the Roof to ‘Stupid-Scary’ Highs, Says JP Morgan

gas

WASHINGTON, DC, July 8 — Reports in advance of the Fourth of July weekend showed that the price of gas had been dropping — albeit by pennies — but a new analysis by JP Morgan predicts prices will increase to “stratospheric” highs if Russia decides to cut oil production. They say it could wind up tripling the price of a barrel of oil. 

Do the math. A barrel of oil can produce 20 gallons of gas. If you’re currently paying about $5.00 a gallon at the pumps at today’s $110 per barrel price, you don’t have to be a mathematician to figure out that at $380 per barrel we could be paying “stupid-scary-dollars” per gallon in the not so distant future.

So, why would Russia want to cut production? “To inflict pain on the West,” the [Morgan] analysts wrote in what they described as a worst-case scenario. “The tightness of the global oil market is on Russia’s side,” they said according to The Epoch Times.

The reasoning behind the JP Morgan report is that “The Group of Seven nations [G-7] are hammering out a complicated mechanism to cap the price fetched by Russian oil in a bid to tighten the screws on Vladimir Putin’s war machine in Ukraine. But given Moscow’s robust fiscal position, the nation can afford to slash daily crude production by 5 million barrels without excessively damaging the economy.”

The G-7 consists of the United States, the United Kingdom, France, Germany, Italy, Japan and Canada.  Russia used to be part of the G-7 but was ousted from the Group in 2014, the last time Russia attacked Ukraine and annexed its Crimean territory.

The New York Times says that the West has already put economic sanctions on Russia but they didn’t have the impact they sought. “The [new] plan, which would allow Russia to keep selling oil to the world but would sharply limit the price, is an acknowledgment that the embargoes the United States and allies swiftly imposed on Moscow’s lucrative energy exports have not dented Russian oil revenues. And they have driven up gasoline and other fuel prices, prompting consumer backlash in the United States and Europe.”

Meanwhile, President Biden is taking heat over a social media message he posted online last week saying, “My message to the companies running gas stations and setting prices at the pump is simple: this is a time of war and global peril. Bring down the price you are charging at the pump to reflect the cost you’re paying for the product. And do it now.” It didn’t take long for Jeff Bezos, the founder of Amazon, to reply: “Ouch. Inflation is far too important a problem for the White House to keep making statements like this.  It’s either straight ahead misdirection or a deep misunderstanding of basic market dynamics.”

As for the market dynamics of gasoline stations, the business website thehustle.com explains Mr. Biden’s ill-informed notion of the gas station business. “It’s easy to look at the gas pump right now and think that station owners are taking you for a ride. But the business model of gas stations is a bit counterintuitive…Most gas stations barely turn a profit on their core product — and when the price of oil goes up they may even take a loss on it…Gas stations make an average net margin of just 1.4% on their fuel…That’s far lower than the 7.7% average across all industries — and ranks beneath other notoriously low margin businesses like grocery stores (2.5%) and car dealerships (3.2%).”

President Biden, you caused this by initiating your administration’s war against fossil fuels – which means gasoline, natural gas, diesel oil, and coal.

President Biden, you caused this by the misguided notion that you could fix the climate with one quick change.

President Biden, you caused this by not considering the impact on everyday American’s.

The result is that you put us back into an import dependent energy economy and surrendered our energy independence to Putin and Russia. Either you and your administration do not understand the impact and cost from your war on fossil fuels. Or you don’t care.


We hope you've enjoyed this article. While you're here, we have a small favor to ask...

Support AMAC Action. Our 501 (C)(4) advances initiatives on Capitol Hill, in the state legislatures, and at the local level to protect American values, free speech, the exercise of religion, equality of opportunity, sanctity of life, and the rule of law.

Donate Now

If You Enjoy Articles Like This - Subscribe to the AMAC Daily Newsletter
and Download the AMAC News App

Sign Up Today Download

If You Enjoy Articles Like This - Subscribe to the AMAC Daily Newsletter!


Subscribe
Notify of
9 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
Hal
2 months ago

Hmmmm. Biden’s shutdown of the mid-American pipeline gets more and more stupid in hindsight. I am beginning to wonder if Biden will ever do anything which can be considered an asset to the USA and its economy?????

Bill T
2 months ago

Let’s be realistic about everything that has been happening since COVID, the entire objective is to collapse our economy, destroy our energy independence, ruin and destroy capitalism, and have a tyrannical government take over everything

PaulE
2 months ago
Reply to  Bill T

Well so far, the Democrats are accomplishing almost everything they have set out to do to date. The Democrats laid out their entire agenda for all American people to read at length in their 110 page campaign position paper in 2020. It was up on the DNC web site for almost an entire year and could be read in less than and hour. Everything done to date since Biden was sworn in was laid out in detail in that document. Everything that the Democrats in Congress have done and everytihng that Biden has done to date. The problem for most Americans is the Democrats are not even half way through with all the changes and transformational policies they intend to enact.

The problem in this country is very few Americans did any research of either the party of of any candidates before voting. A lot of Americans have become lazy and completely uninformed about almost everything. Which is very, very bad for any country’s future. Sadly most people just watch stupid 30 second political commercials on TV and robotically do whatever some moronic TV news anchor or talk show host tells them to do. The end result is the situation we now find ourselves in. Honestly, I’m completely shocked that the American public has just rolled over and played dead as the Democrats enacted more and more insane and destructive policies upon this nation.

GlennW
2 months ago
Reply to  PaulE

The paper referred to in the aforementioned response is called “BIDEN-SANDERS UNITY TASK FORCE RECOMMENDATIONS”.

JEFFREY JONES
2 months ago

Arrest and prosecute the whole biden administration for treason and murder……….,.

Bill T
2 months ago

Our presidents decisions from the day he destroyed our keystone pipeline and straddled all our major refineries with crippling legislation has put our country in a extremely dangerous and vulnerable position. We’re using up a large portion of our strategic oil reserves right now. We’re at the mercy of our worst enemies for energy supplies. This is simply unbelievable, everything that’s happening and has happened over the past 18 months is squarely on this Marxist administration and our president. This is not a good situation, without abundant oil and gas to keep our infrastructure together it will be disastrous. If Russia decides to reduce there oil production it’s really not a problem for them. There currency is already worth 3-4 times more than it was just 6 months ago. There in a war with Ukraine and it’s a terrible situation right now over there. But if gas and diesel fuel prices go south of$10!a gallon were finished. It’s suspicious to me about everything that’s been happening lately and it all seems to be a pattern. Biden promised to destroy the oil and fossil fuel industry and go to green alternative energy sources(the green new deal!) we’ll we’re simply not equipped for that anytime soon. As with everything else this foolish administration has accomplished up to now, the total destruction of our country and all our industry’s will collapse with these decisions, not to mention food shortages, and total chaos. I’m sure it’s exactly what there strategy has been from the very beginning

PaulE
2 months ago
Reply to  Bill T

As you said, Biden said before he was elected that he would put an end to the American oil and natural gas industry in this country. What did you think the result would be when he did that? Hint, the price of gasoline and diesel would shoot up, because we as a nation are producing less and now back to be dependent on foreign players.

Biden also said he would sign on to the Paris Climate Accords and go all in on green energy (the Green New Deal). Again, what did you think would happen considering no industrial nation on the planet can generate enough power solely off of solar and wind to maintain their economies? Western Europe went all in for this green nonsense nearly 10 years ago and ALL their economies have suffered. Gasoline in Europe costs anywhere from $10 to $14 a gallon when you convert their liter pricing to gallons. That will be us in a few years, if the American people don’t stop this madness. We are just beginning to experience the economic decline here that most of western Europe has been going through for years. Prices for food and energy will continue to rise. Soon Washington will announce the need for new regulations and rationing as the situation worsens and we deplete the SPR.

None of this had to occur. This is all the end result of way too many Americans thinking “someone else” will continue to save them from themselves when they make bad decisions at the ballot box. Virtually none of the problems we are facted with today existed when President Trump was in the WH. Everything that has gone wrong in this country since January 20, 2021 is the direct result of handing control of Congress and the WH over to the Democrats. All they have been doing since then is simply enacting the agenda they all campaigned on but it seems far too few Americans were paying any attention to.

Michael J
2 months ago

Is JP Morgan in lockstep with Biden’s blame game?

PaulE
2 months ago
Reply to  Michael J

Every major Bank and investment firm on Wall Street has been dominated by leadership aligned with the Democrat Party since the 1990’s. They have consistently donated 90 percent to Democrats and only 10 percent to any Republican. That 10 percent is only so they can say they aren’t choosing sides with a wink.

Don’t expect any of the major Wall Street firms to issue an honest assessment of either the Biden Presidency or any criticisms of Democrat policy related to energy, climate change, ESG, etc.. So yes, they will indeed continue to march in lockstep with whatever the White House under any Democrat President says.

9
0
Would love your thoughts, please comment.x
()
x