The federal government has stashed away about 700 million barrels of oil and Trump wants to sell half of our reserves.
“If Trump does, gas prices will spike.”
Back in 2010, the U.S had the oil spill incident which made oil prices skyrocket and in certain states they have seen oil prices hit prices they’ve never seen.
On average in the U.S gas is around $2.87, after the crisis, we saw an increase of a dollar, in some states like California gasoline break the $4 mark, that is fucking outrageous. Columbia professor, Jason Bordoff warns that even though “U.S oil imports are down ‘prices at the pump will spike’ if there’s a supply disruption”. Basically if Trump goes and sells the reserves that supply change will cause oil to rise.
We may not see a spike similar to how it was during the spill, but we are definitely going to see a spike in oil prices if trump gets his way. It’s already a struggle keeping a full tank a gas in the car with the prices now.
Many oil analysts say that this a short term cash grab, which roughly oil on average goes for $29.70 a barrel. As of right now oil is now resting around $50 a barrel. The government stashed away 700 million barrels of oil underground and cutting half of the reserves is just too sporadic. As of right now it’s unclear whether Trump wants to sell off half of it, but still it’s still such a big cut of our reserves. If this sudden cut does go through it’s going to be a pain in the ass going to the petrol stations knowing that we will definitely see prices soar for petrol. Many Americans have cars and drive daily, some of us use our car as a source of income. With prices going up they need to make sure that they make enough to cover their gas expenses, of course I’m talking about the local uber and lyft drivers. Many of them know that know for them to make a good amount of money they need to go to major cities. I know many drivers don’t live near these busy cities so they have to make a drive there and back. Those miles they drive they got to make sure they can cover their expenses and with the increase they need to make sure it’s covered or it wouldn’t be worth working since they would be losing money instead of gaining. I truly believe that if this goes through, sure its great for the government to get that quick money grab but in the end we the people are going to suffer with this change.