What's-Up With The Price At The Pump?

I'll tell you what's-up - the price at the pump is about half of what it was in June of this year.  

I've published content on the subject of energy economics here before and market forces are doing what they've always done - they go up and down and ebb and flow.  And I know I sound like a broken record - presidents of this great nation do not arbitrarily set the price of a gallon of gasoline.  That is nothing but nonsense that emerges from the Face Book cesspool of lazy economic thinking.  But I digress.

At their peak six months ago, gasoline prices were well over $5 a gallon in mid-June.  Today the price of West Texas intermediate crude oil (the US benchmark that serves as the main driver of gas prices) has fallen to its lowest level of the year.  After rising above $120 a barrel in March and June it is now hovering around $72 (give or take).

The drop in gasoline prices has been led by a decline in worldwide energy demand which has driven oil prices lower.  

This bears watching because it may be leading indicator of a recession in 2023.  I'm not suggesting this is a prediction as I had to surrender my Crystal Ball and Tarot Cards when I retired from the day job.  So I'll stand with watching how this and other possible economic indicators reveal themselves.

Until then this is how market forces work.

Mom and Her Litter