On NPR’s “Here and Now” program on Thursday, Bloomberg News senior editor Mike Regan said one factor in the oil and gas price decline is that consumers are responding to higher gas prices by buying less gas. We’re going to see a lot of things.” And he noted that gas supplies are lower in 2020 than at this time.
Reagan said that global factors are at work and said, “If you look at it from the supply side, it’s clear that the war in Ukraine has been going on for so long that other sources are starting to get this oil from Russia. For example, the US has clearly extracted a lot of oil from its strategic reserve, and OPEC producers are more “Obviously, they didn’t bomb it as much as many would like. But they increased production.”
“And on the demand side, consumers often respond by buying less gas, and I think we’re seeing that in a lot of cases.”
Reagan also said that oil and gas prices depend on “a thick layer of speculation.”
Co-host Scott Tong then asked:[T]This idea of inelastic demand, that is, when prices are high for long periods of time, can change consumer behavior in the long run. For example, I can sell my car or be closer to the subway station. Are there any signs of this?
“I think there are definitely signs of that. Gas supplies are really down this time of year in 2020. … And there it is,” Regan said. [are] some different things that people teach.” Reagan later spoke of cars getting better, but he also noted that the drop in demand could come from a slowing economy.
Source: Breitbart
