HAVEN’T GONE THROUGH IT YET. THIS IS STILL AN ACTIVE INVESTIGATION. IT’S NOW TIME
FOR THE WEEKLY WITH NEWS 6
MORNING ANCHOR JUSTIN WARMOTH.
>> THIS IS THE WEEKLY ON
CLICK, ORLANDO DOT COM WITH
JUSTIN WARMOTH. GOOD MORNING.
I’M JUSTIN WARMOTH. RECORD
BREAKING. GAS PRICES ARE NOT
SLOWING DOWN. MEMORIAL DAY
WEEKEND TRAVEL AND THAT DEMAND
IS PART OF THE REASON WHY
ANALYSTS SAY PRICES. WE’LL
CONTINUE TO CLIMB THIS
MORNING. GASBUDDY’S PATRICK DE
HAAN IS HERE TO GIVE US A
SUMMER FORECAST. AND WHEN
DRIVERS COULD FINALLY SEE SOME
RELIEF. PATRICK, THANKS SO
MUCH FOR JOINING US THIS
MORNING. THANKS FOR HAVING ME.
ABSOLUTELY. ALL RIGHT. LET’S
TALK ABOUT ON THE MINDS OF SO
MANY, ESPECIALLY THIS WEEKEND
AS FOLKS AT THE ROAD FOR
MEMORIAL DAY. WHAT’S DRIVING
PRICES AT THE PUMP? IS THIS A
SUPPLY DEMAND ISSUE?
>> CONTINUES TO BE A SUPPLY
DEMAND WE SAW PRICES GOING
DOWN IN EARLY APRIL, BUT THEN
THE EUROPEAN UNION CAME OUT
AND SAID WE’RE REALLY CLOSE TO
SANCTION RUSSIAN OIL. THAT
KIND OF STARTED TO JUMP IN
PRICES. NOW IN THE BACKDROP,
WE’VE ALSO SEEN GASOLINE
SUPPLIES DECLINING ALMOST ON A
WEEKLY BASIS. I HAD A BOILED
EGG AND THAT’S CAUSED GASOLINE
PRICES TO GO UP IN THE SAME.
THIS HELD TRUE FOR DIESEL
WHICH PROBABLY SAVED EXPLODE
OVER THE LAST MONTH AND A
HALF. ALL OF THIS IS REALLY
HAPPENING BECAUSE WE’VE LOST
ABOUT A MILLION BARRELS A DAY
OF REFINING CAPACITY. SO
THAT’S GOING TO KEEP PRICES
FAIRLY ELEVATED, NOT JUST FOR
MEMORIAL DAY, BUT I’M AFRAID
THROUGH THE SUMMER. AND OF
COURSE, WITH HURRICANE SEASON
JUST AHEAD OF THINGS COULD GET
WORSE.
>> WHY ARE LEVELS SO LOW? THE
LOWEST REALLY SINCE 2019,
RIGHT?
LOWEST REALLY SINCE 2019,
RIGHT? without talking >> YEAH, WE’RE AND IN TERMS OF
GASOLINE AND DIESEL
INVENTORIES. SO LIKE I SAID,
THE LOSS OF ABOUT A MILLION
BARRELS, THEY’VE REFINING
CAPACITY REALLY TO BLAME. SOME
OF THAT HAPPENED BECAUSE OF
COVID REDUCING DEMAND. BUT
LAST YEAR, A REFINERY IN
LOUISIANA SHUT DOWN AFTER
HURRICANE IDA DAMAGE. THE BACK
IN 2019, A FIRE AT A REFINERY
IN PHILADELPHIA PERMANENTLY.
AND KEEP IN MIND, THIS IS JUST
THE U.S. TREND. WE’VE SEEN A
LOT OF REFINERIES IN EUROPE
ALSO SHUT DOWN OVER THE LAST 3
YEARS. SO THIS IS A GLOBAL
ISSUE AND THAT’S WHY THINGS
ARE EXTREMELY TIGHT AND NOT
LIKELY TO GET BETTER ANY TIME
SOON.
>> AND THEN ON THEM. IN THE
MEANTIME, ON THE DEMAND SIDE
THAT HAS BEEN SO HIGH, IF YOU
DRIVE AROUND, YOU SEE IT. ARE
WE SEEING ARE YOU SEEING
REALLY BASED ON THE NUMBERS?
ARE WE SEEING DEMAND
DIMINISHED AT ALL AFTER WE
BREAK RECORDS SEEMINGLY EVERY
DAY.
>> WELL, I MEAN, DEMAND IS
VERY BUT IT’S CERTAINLY NOT
QUITE AS STRONG AS IT WAS IN
2019. I THINK THAT’S WHERE THE
OBVIOUS MASSIVE DIFFERENCE OF
PRICES WEIGHING ON. AMERICANS.
NOW, IN MIND THAT THE
CONDITIONS THE SUMMER OF THE
MOST FAVORABLE, PROBABLY SINCE
2019, RIGHT? ECONOMY IS
FINALLY BASICALLY FULLY REOPEN
AND AMERICANS ARE SICK AND
TIRED OF SITTING HOME FOR THE
SUMMER AND SO LONG LIKE LAST
YEAR KIND OF LIKE HALF AND
MANY THINGS ARE FULLY
REOPENED. YOU KNOW, ANOTHER
YEAR IS NOT GOING TO BE LOST.
AND THAT’S WHY I THINK EVEN IN
LIGHT OF HIGH GAS 58% OF
AMERICANS SAID THAT THEY ARE
HITTING THE ROAD THIS SUMMER.
THAT’S UP FROM LAST YEAR. AND
A SIGN OF RESILIENCE AGAINST
THESE HIGH PRICES.
>> AN ORLANDO AND CENTRAL
CERTAINLY A HOT SPOT WEATHER.
YOU WANT TO STAY HERE AND
STAYCATION, IF YOU WILL,
YOU’RE STILL GOING TO DRIVE.
MAYBE THE BEACH TO A LAKE,
WHATEVER WE HAVE FOLKS COMING
DOWN AS WELL. HOWEVER, STACK
WHEN IT COMES TO GAS PRICES.
WHEN WE LOOK AT THE REST OF
THE NATION.
>> WELL, AT LEAST A DAY,
ORLANDO, STILL A LITTLE BIT
UNDER THAT NATIONAL AVERAGE, A
NATIONAL AVERAGE TODAY FOR 60
A GALLON PRICE IN ORLANDO AT
ABOUT 4.58. WE DID SEE MOST
STATIONS JUMP UP EARLY THIS
WEEK TO 4.59. SO JUST A SLIVER
UNDER THE NATIONAL AND THAT’S
USUALLY THE WAY IT IS
ORLANDO’S KIND OF ONE OF THOSE
AREAS THAT COULD BE UNDER
LITTLE BIT OVER. I THINK THE
BAD NEWS IS NOT JUST THE HIGH
PRICE START THE SUMMER, BUT
THAT WE MAY BE STUCK WITH
THESE HIGH PRICES FOR SOME
TIME. AND EVERYONE KNOWS,
ESPECIALLY FLORIDIANS.
HURRICANE SEASON JUST UPON US.
AND THAT CERTAINLY CAN CAUSE
SHUTDOWNS IN ISSUES AS WELL.
SO I EXPECTED TO BE A VOLATILE
AND EXPENSIVE SUMMER FOR
FILLING YOUR TANK.
>> YOU I SPOKE TO IN FEBRUARY
WITH THE HEADLINE. COULD GAS
PRICES REACH BOARD ALL $4? A
GALLON GASBUDDY ANALYST
WEIGHS-IN WELL, YOU PREDICTED
THAT WOULD HAPPEN ESPECIALLY
IF RUSSIA INVADED UKRAINE. AND
THAT IS WHAT HAPPENED. NOW.
THEY’RE AROUND FOR 60 A
GALLON. I’M JP MORGAN COMES
OUT WITH THEIR OWN PREDICTIONS
SAYING $6 NATIONAL AVERAGE. IS
WHAT THEY’RE PREDICTING. IS
THAT HOW YOU SEE IT?
>> IT’S NOT I WOULD PUT A
LITTLE BIT OF COLD WATER ON
THAT, THOUGH. I I CERTAINLY
MYSELF, DON’T SEE IT. I THINK
THERE WOULD BE A LOT OF STARS
THAT WOULD HAVE TO ALIGN TO
GET US TO THAT $6. MARK, THE
MAN WOULD HAVE TO BE EVEN MORE
RESILIENT IN THE FACE OF
PRICES THAT THEY PREDICT COULD
GO UP OVER ANOTHER $1.50 A
GALLON. AND I JUST DON’T SEE
QUITE ALL OF THAT HAPPENING
NOW. LIKE I SAID, IT’S NOT
IMPOSSIBLE. PERSONALLY. I
DON’T THINK THAT SURGE OR A
TRAJECTORY WILL SEE YOU NOW.
IF DEMAND CONTINUES TO BE
ELEVATED, IF WE GET A PERFECT
STORM LIKE A HURRICANE HARVEY
THAT SITS ON YOU, STOOD ON THE
NATION’S REFINING CAPITAL,
THEN WE COULD SEE BUT, YOU
KNOW, GIVEN THE EXTREMELY LONG
ODDS, I DON’T THINK THAT’S
GOING TO BE A NORM THE SUMMER,
UNLESS, OF COURSE, YOU’RE IN
CALIFORNIA WHERE IT’S ALREADY
$6 AND $0.20 IN SOME AREAS. I
DON’T THINK THAT’S GOING TO
HAPPEN IN FLORIDA, BUT THEY’RE
STILL A REMOTE CHANCE. IT
COULD.
>> $5. IS THAT INEVITABLE?
>> I THINK THAT’S, YOU KNOW,
HOW MUCH MORE PROBABLE THAN
$6. I THINK ALL IT WOULD TAKE
IS A SMALLER REFINERY ISSUE TO
GET US TO THAT $5 MARK FOR A
SMALLER HURRICANE COULD GET US
THERE. THERE’S A LOT OF THINGS
THAT CAN GET US TO 5. THERE’S
NOT A LOT OF THINGS THAT COULD
GET US TO. JUST PUT IT THAT
WAY.
>> YOU I’M CURIOUS BECAUSE
WE’VE HEARD THE BIDEN
ADMINISTRATION CONTINUE TO
BLAME HIGH GAS PRICES ON THE
RUSSIAN INVASION OF UKRAINE.
AND THAT IS CERTAINLY AS
YOU’VE TOUCHED ON A PIECE OF
THIS, IS THAT THE ONLY BECAUSE
IT SEEMS LIKE THAT’S THE PUSH
BACK FROM REPUBLICANS,
CERTAINLY. BUT OTHERS SAYING,
WELL, IT’S NOT JUST THAT.
THAT’S NOT THE ONLY THING THAT
WE NEED TO BLAME HERE. IS
THERE SOMETHING THE PRESIDENT
CAN DO ON TOP OF THAT ANYMORE?
LEVERS WE CAN PULL.
CAN DO ON TOP OF THAT ANYMORE?
LEVERS WE CAN PULL. without talking >> NOT A LOT OF LEVERS. A
PRESIDENT DOESN’T HAVE A WHOLE
LOT OF LEVERS TO BEGIN AND,
YOU KNOW, JUST SAY THAT AS
THAT PRESIDENT TRUMP HAD WON A
SECOND TERM, PRICES WOULD HAVE
ABSOLUTELY GONE UP AS WELL.
MAYBE NOT TO THIS EXACT SAME
LEVEL OF, YOU KNOW, FOR 58.
BUT, YOU KNOW, IT’S THE SAME
THINGS THAT HAPPENED. IT
WOULDN’T MATTER WHO WAS IN THE
WHITE HOUSE BECAUSE THEY THEY
THEY REALLY NO POWER OVER THE
SITUATION. SO, YOU KNOW,
PRESIDENT BIDEN’S ALREADY
RELEASE OIL FROM THE SPR. YOU
KNOW, HE’S DONE SOME OTHER
THINGS THAT THAT, YOU KNOW,
ARE NOTABLE. BUT YOU CAN
OFFSET RUSSIA. ONE OF THE
WORLD’S LARGEST OIL PRODUCERS.
THERE’S NO SPARE RUSSIA
WAITING TO JUMP IN AND PRODUCE
OIL. AND THAT’S A PROBLEM.
THERE’S NO WAY A PRESIDENT CAN
SUDDENLY JUST TAP 10 MILLION
BARRELS A DAY OF OIL
PRODUCTION. WE’VE KEPT A
MILLION, RIGHT? THAT’S THE
PRESIDENT RELEASED A MILLION
BARRELS A DAY, BUT THAT STILL
WON’T HAVE OF WHAT RUSSIA IS
CAPABLE OF.
>> AND THEN WE’VE HEARD
POLITICIANS CALLING FOR
RAMPING UP THAT DOESN’T HAVE
AN EFFECT. AN IMMEDIATE
EFFECT, CERTAINLY RIGHT.
>> YEAH, DOES TAKE QUITE SOME
TIME FOR NEW DRILLING AND NEW
SOURCES OF OIL TO MAKE ITS THE
MARKET SEVERAL YEARS. IN FACT,
NOW, THERE WERE A LOT OF OF
DOCKS OR DRILLED BUT
UNCOMPLETED WELLS AS A RESULT
OF COVID. BASICALLY WELLS THAT
ARE CLOSER TO BRINGING IN THE
SERVICE WRITING. A LOT OF
THOSE WELLS HAVE BEEN
COMPLETED. NOW THE U.S.
RECOUNT IS UP 243 FROM A YEAR
AGO. BUT THEN SOMEWHERE
THERE’S NOT AN INFINITE AMOUNT
OF THESE WELLS THAT ARE, YOU
KNOW, CLOSE TO BRING OUT MINE
DRILLING AND EXPLORATION AND
GETTING THAT TO THE MARKET
DOESN’T HAPPEN OVERNIGHT. IT
TAKES YEARS. AND THAT’S WHY
THE PRESIDENT, EVEN IF HE SAID
DRILL WHEREVER YOU WANT. BILL
DOES MANY PIPELINES AS YOU
WANT. THAT’S NOT GOING TO
SOLVE PROBLEMS TODAY TOMORROW
OR THE SUMMER. MAYBE A FEW
YEARS.
>> NOW, TYPICALLY GAS PRICES
TAKE THE ELEVATOR UP AND THE
STAIRS DOWN. COMING UP TO HAHN
WILL EXPLAIN THE REASONING
BEHIND THE SLOW DECLINE AND
WHY GAS STATION
>> THIS IS THE WEEKLY ON CLICK, ORLANDO DOT COM WITH JUSTIN WARMOTH.
>> JONATHAN: WELCOME BACK.
WHAT? YOU DON’T NEED ME TO
TELL YOU. EVERYTHING IS MORE
EXPENSIVE RIGHT NOW. BUT GAS
PRICES SEEMED TO IRRITATE US.
THE MOST ANALYSTS SAY IT’S A
SUPPLY AND DEMAND PROBLEM AND
THAT STRONG DEMAND ISN’T GOING
AWAY AS MILLIONS HIT THE ROAD
FOR MEMORIAL DAY WEEKEND. SO
WHAT WILL IT TAKE FOR THOSE
PRICES TO COME BACK DOWN?
HERE’S GASBUDDY’S PATRICK DE
HAAN. PRICES.
HERE’S GASBUDDY’S PATRICK DE
HAAN. PRICES. without talking >> TYPICALLY FALL IN THE FALL
AND SPRING IN THE SPRING
SUMMER WHEN DOES THAT IS THAT
OUR DOES THAT AFFECT THAT
HIGHER PRICE EFFECTS FROM THE
SUMMER IS THAT ALREADY HERE?
IS THAT SOMETHING THAT WE CAN
EXPECT?
>> NO, THAT IS SOMETHING THAT
BASICALLY BEEN PRICED RIGHT IS
THERE’S A SMALL, HIGHER PRICE.
ORLANDO DOESN’T USE THE MOST
STRINGENT TYPE OF SUMMER
GASOLINE. SO THERE’S THAT SOME
AREAS, BIGGER CITY, CHICAGO,
ST. LOUIS, NEW YORK L A
THERE’S MUCH BIGGER OF A
DIFFERENCE ABOUT 25 TO $0.40 A
GALLON BETWEEN WHAT THEY USE
IN WINTER WITH THESE AND
SUMMER ORLANDO’S ONE OF THOSE
EXCEPTIONS THAT THEY USE A
DIFFERENT TYPE OF GASOLINE FOR
THE SUMMER, BUT IT’S MORE OF A
COMMON STANDARD ACROSS AREAS
OF THE U.S.. AND SO, YES, THAT
IS SOMETHING THAT’S PRICE AND
WHAT WE’RE PAID TODAY. AND AS
YOU MENTIONED, I DO EXPECT THE
CYCLICAL NATURE OF GASOLINE TO
CONTINUE PRICES SPRING FOR THE
SPRING AND FALL INTO THE FALL.
BUT BIGGEST QUESTION IS ALSO
WHAT IS GOING TO BE GOING ON
IN THE BACKDROP OF THAT
HAPPENING ARE CERTAIN THINGS
THAT COULD OVERPOWER THAT
DECLINE THAT WE USUALLY SEE IF
THERE’S AN ESCALATION BETWEEN
RUSSIA, UKRAINE YOU KNOW, IF
ANOTHER WILL PRODUCER GOES
OFFLINE. AND FALWELL FORGET
ABOUT PRICES GOING DOWN. SO
ALL THINGS HOLD NORMAL. WE
SHOULD SEE SOME RELIEF FROM
THE 2ND HALF OF THE SUMMER.
AGAIN.
>> SUBJECT TO HURRICANE
SEASON. YEAH, WHICH OF COURSE,
STARTS THIS SO WE’VE SEEN
QUITE A NUMBER OF OF PEOPLE
REACTING OR ACCUSING GAS
STATION OWNERS OF TRYING TO
TAKE ADVANTAGE OF. THAT’S WHAT
THEY’RE CLAIMING THAT THESE
GAS STATION OR TO TRY TO TAKE
ADVANTAGE OF THIS BY PRICE
GOUGING. IS THAT FAIR?
>> NO, IT’S NOT. I’M JUST LIKE
YOU. YOU MAY HAVE A HAND AND
WHAT YOU SELL YOUR HOUSE FOR
THE UNDERLYING VALUES
BASICALLY TURNED DETERMINED BY
THE CURRENT SUPPLY AND DEMAND
CONDITIONS. YOUR HOUSE IS
WORTH MUCH MORE TODAY BECAUSE
THERE’S HAD ESPECIALLY IN
FLORIDA. THERE’S WAY FEWER
HOMES THE MARKET. SO SUDDENLY
OVER THE LAST YEAR AND A HALF,
THERE HAVEN’T BEEN AS MANY NEW
HOMES BUILT FOR VARIOUS
REASONS. AND SO THE VALUE HAS
SKYROCKETED. I WOULDN’T SAY
THAT YOU’RE GOUGING BY SELLING
AT THE MARKET PRICE. THERE’S
JUST PEOPLE WILLING TO PAY
THAT THE SAME EXACT THING
HOLDS TRUE FOR OIL BACK IN
2021, NOBODY WAS DRIVING THE
MAN PLUMMET AND THAT FORCED
PRICES TO GO DOWN. BUT NOW THE
OPPOSITE IS SURE. ALMOST
EVERYONE AND THEIR MOTHER
DRIVING. AND THERE’S NOT
ENOUGH SUPPLY TO KEEP UP WITH
THAT DEMAND, ESPECIALLY
CONSIDERING THAT ABOUT RIGHT,
THAT KIND OF ARTIFICIAL FACTOR
THAT RUSSIA INVADED UKRAINE.
WE RESPOND BY SANCTIONING
RUSSIA. SO THAT’S WHAT HAS
REALLY SET THE MARKET SKYWARD
RUSSIA. SO THAT’S WHAT HAS
REALLY SET THE MARKET SKYWARD without talking IS THAT THERE’S JUST BEEN A
MASSIVE TILTON TIPLINE. AND I
DO EXPECT SOME IMPROVEMENT,
BUT IT’S REALLY CONTINGENT ON
ONE. RUSSIA STARTS WHETHER OIL
CAN GET BACK TO THE GLOBAL
MARKET. AND KEEP IN MIND, IT’S
A LOT OF COUNTRIES THAT ARE
SANCTIONING RUSSIAN SOIL.
>> IT’S NOT. AND AGAIN, I DO
WANT TO FOCUS THAT THIS IS A
GLOBAL THING IT’S NOT JUST,
YOU KNOW, YOUR LOCAL GAS
STATION SEEING HIGH GAS WHEN
WE LOOK ACROSS TO THE WORLD
REALLY. AMERICA HAS LOWER GAS
PRICES. WHEN YOU LOOK AT THE
CONVERSION RATE AND EVERYTHING
LIKE THAT AS OPPOSED TO EUROPE
AS WELL, JUST FOR SOME
PERSPECTIVE FOR FOLKS OUT
THERE.
>> YEAH, THE BIGGEST
DIFFERENCE IS THAT EUROPE HAS
A LOT MORE TAXES, BUT THE BASE
FOUNDATION, YOU KNOW THE U.S.
WE DO THINGS REALLY
OFFICIALLY. WE HAVE A LOT OF
ENERGY TO MAKE THESE THINGS
LIKE GASOLINE, DIESEL, JET
FUEL, RIGHT? NATURAL GAS IS
ONE OF THE DRIVERS THAT
REFINERIES THEY USE A
TREMENDOUS AMOUNT OF POWER,
OUR POWER OR ELECTRICITY IS
PLENTIFUL AND RELATIVELY
CHEAP. YOU GO OVER TO EUROPE
AND THEY USE A LOT RENEWABLES.
SO THE COST ELECTRICITY TO
DRIVE REFINERIES IS VERY
EXPENSIVE. SO THAT ALL GOES
INTO WHAT THE REFINERY AND
SELLS THEIR PRODUCTS FOR. BUT
AS YOU MENTIONED, THIS IS NOT
JUST U.S. PHENOMENON. THE WE
ARE KIND OF THE MIDDLE OF THE
ROAD. MANY COUNTRIES ARE
HIGHER AND ANY COUNTRIES THAT
ARE SELLING GAS SIGNIFICANTLY
LOWER. THERE STILL ARE
COUNTRIES THAT SUBSIDIZE THAT
GHASTLY LIKE IN SAUDI ARABIA,
THE GOVERNMENT BASICALLY SELLS
IT.
>> BELOW COST.
>> TO KEEP THEIR CITIZENS
HAPPY AND BECAUSE THEY HAVE A
LOT OF OIL ARE SETTING UP.
>> AND AND TRADITIONALLY, GAS
TAKE THE ELEVATOR UP IN THE
STAIRS DOWN. RIGHT? SO WHEN WE
SEE SPIKES, I MEAN, THEY
HAPPEN RATHER QUICKLY AND THEN
IT TAKES A LONG TIME TO KIND
OF GET BACK TO WHATEVER FOLKS,
THANK THE MARKET VALUE REALLY
SHOULD BE. I THINK THAT WE’VE
BECOME ACCUSTOMED TO SEEING
SOMETHING IN THE TWOS OR LOW
THREES BASED ON LIVING TO
COVID AND SEE WHAT GAS PRICES
WERE FOR THE LAST COUPLE OF
YEARS. AND SO THIS IS MORE OF
LIKE STICKER SHOCK AS OPPOSED
TO MAYBE SOMETHING THAT IS
TRULY IN REALITY OF WHAT IT
SHOULD BE.
>> AS YOU MENTIONED, IT’S ROCK
AND FEATHER PRICES DO SHOOT
UP. AND I THINK SOME OF THAT
HAS TO DO WITH PSYCHOLOGY.
PEOPLE GET VERY SCARED AND
VERY THE PEOPLE THAT TRADE OIL
AND COMMODITIES, THEY’RE AND
SO IF YOU SEE SOMETHING
COMPLETELY UNEXPECTED AND
SHOCKING. YOU KNOW, WHO HAVE
WHO HAVE HAD AT THE BEGINNING
OF THE YEAR, RUSSIA INVADING
UKRAINE. SO WHAT HAPPENS IS,
WELL, COMPANIES OR I SHOULD
SAY TRADERS REPRESENTED BY GAS
STATIONS YOU KNOW, YOU SEE IN
ABOUT LIKE THAT. AND YOU KNOW,
THE THINKING IS I BETTER JUMP
IN AND BUY WELL, BECAUSE WHAT
IF WHAT IF IT’S HARDER TO GET
DOWN THE ROAD? AND THAT STARTS
PUTTING PRICES UP JUST LIKE,
YOU KNOW, THE WHOLE MARKET,
RIGHT? PEOPLE ARE JUST
THROWING IT OFFERS ARE DOING
RIDICULOUS THINGS BECAUSE
THEY’RE SO DESPERATE. THAT
RIDICULOUS THINGS BECAUSE
THEY’RE SO DESPERATE. THAT without talking PSYCHOLOGY OF LIES THAT WILL
TRAINING AS WELL YOU KNOW,
PEOPLE BUY HOUSES HOME AND SEE
NO INSPECTION. THAT’S THE SAME
TYPE OF EMOTIONAL BEHAVIOR
THAT HAPPENS WHEN YOU SEE
RUSSIA INVADING UKRAINE AND,
YOU KNOW, THERE’S GOING TO BE
REPERCUSSIONS.
>> YEAH, I MEAN, THE PRICE OF
LIVING AND FOR BASIC THINGS
HAS GONE UP ACROSS THE BOARD.
IT’S NOT JUST GAS PRICES, BUT
IT’S BUT GAS PRICES SEEMINGLY
GET THE MOST PRESSING. IS THAT
BECAUSE I DON’T I EVERYONE ARE
A LOT OF FOLKS DRIVE R B, IS
IT MORE SO THAT WE SEE THE
PRICES CHANGE IN REAL TIME
WITH THE BIG BOARD LOCAL GAS
STATIONS?
>> I MEAN, THAT’S REALLY A
RIGHT. YOU CAN ESCAPE. BUT IF
YOU’RE DRIVING EVEN A MILE.
THOSE ALLY HE’S OR DISLIKE
THAT YOU CAN AVOID RIGHT? IT’S
JUST VERY BRIGHT. YOU SEE IT.
IT’S BECOME A BAROMETER FOR
MANY OF US AND HOW WE FEEL
RIGHT, BECAUSE AMERICA LOVES
THE AUTOMOBILE. WHETHER TO
TESLA OR INTERNAL COMBUSTION
ENGINE VEHICLES THAT STALLS
FREEDOM TO US AND THAT GAS
PRICE. I IT’S HOW WE FEEL
ABOUT OUR BELIEFS TO HAVE THAT
FREEDOM. WHEN WE SEE PRICES GO
UP, IT FEELS LIKE WE’RE BEING
RESTRAINED. AND WHEN PRICES
ARE DOWN, IT FEELS LIKE WE CAN
DO ANYTHING.
>> SO RELIEVED. I DO WANT TO
TOUCH ON THIS BEFORE WE LET
YOU GO FOLKS WONDERING WHEN
WILL THEY COME DOWN WHEN WE
WHEN WE REPORT ON PRICES
COMING DOWN, MORE SO THAN
GOING UP. IS THAT SOMETHING
THAT YOU THINK A LABOR DAY WE
CAN. WE CAN MAKE A ROUGH
ESTIMATE ON THAT.
>> ALL TIED TO REALLY TO ONE
OF 2 MAJOR EVENTS EITHER THE
ECONOMY SLOWS DOWN
SIGNIFICANTLY. AND WE SEE
THAT, YOU KNOW, DIRTY R WORD
RECESSION BECAUSE THAT WILL
GREATLY REDUCE THE MAN MOST
LIKELY OR THERE’S SOME
RESOLUTION BETWEEN RUSSIA,
UKRAINE AND THAT JUST
RESOLUTION. BUT A LONGSTANDING
RESOLUTION, BECAUSE THAT’S
PROBABLY THE ONLY WAY THAT
COUNTRIES WILL THEN AND THOSE
SANCTIONS ON RUSSIA’S ENERGY
AND ALLOW THAT ENERGY TO FLOW
TO THE BALLPARK. THAT’S WHAT
WE NEED RIGHT? DOESN’T MATTER
IT’S RUSSIA OR IF WE CAN
SUDDENLY PRODUCE A LOT MORE
OIL OVERNIGHT. THAT’S FOR THE
GLOBAL MARKET NEEDS BALLOTS
AND FOR PRICES TO COME DOWN AS
WE NEED, A LOT OF OIL DOESN’T
REALLY MATTER WHERE WE GET TO.
>> LONG TERM LONG-TERM
SOLUTIONS. AND IS THERE
SOMETHING THAT YOU BELIEVE
NEEDS TO HAPPEN IN THIS
COUNTRY OR MAYBE ON THE GLOBAL
SCALE WHEN IT COMES TO OIL,
GAS AND AND WHAT PEOPLE PAY AT
THE PUMP.
>> I MEAN, WE’RE OBVIOUSLY
VERY TIMES RIGHT. WE WENT FROM
COVID WHICH SUPPRESS THE
ECONOMY TO THE OPPOSITE,
RIGHT? THE ECONOMY IS JUST
RUNNING SO FAST. NOW WE’RE
TRYING TO SLOW IT DOWN. I’M
REALLY THE ONLY THING THAT’S
GOING TO BE A PERMANENT CURE
IS TIME, RIGHT? A LOT OF THESE
IMBALANCES WILL WORK THEIR WAY
OUT. BUT AGAIN, A PRESIDENT NO
MATTER THE U.S. PRESIDENT OR
OR GERMAN OR JAPANESE FOR
THAT, THERE’S NOTHING YOU CAN
REALLY DO ABOUT RUSSIA’S
AGGRESSION AGAINST UKRAINE.
YOU CAN THAT’S WHAT WE’RE
DOING BY STATIONS. BUT IT’S
GOING TO TAKE A LONG TIME FOR,
YOU KNOW, THE DEMAND TO GO
DOWN TO FIRST APPLY TO GO UP.
SO WE’RE KIND OF STUCK IN THIS
INTERIM UNTIL THERE’S A
DEVELOPMENT THERE. WE’RE GOING
TO BE STUCK PAYING HIGHER YOU
KNOW, THERE’S SO MANY SUPPLY
CHAIN AND BALANCES, RIGHT?
EVEN IF YOU WANT TO BUY RIGHT
NOW, YOU COULD SO WE’RE JUST
DEALING WITH THE CONFLUENCE OF
VARIOUS FACTORS BROUGHT ON BY,
YOU KNOW, CIRCUMSTANCES THAT
ARE WELL BEYOND OUR CONTROL
YOU KNOW, BUT BECAUSE THE
PRESIDENT PROVED REALLY, YOU
CAN PROBABLY LET THE FREE
MARKET DO ITS SAY, BUT THAT’S
NOT GOING TO SOLVE THE PROBLEM
OVERNIGHT, RIGHT? THAT’S GOING
TO SOLVE THE PROBLEM A COUPLE
OF YEARS. EVERYONE’S LOOKING
FOR THE OVERNIGHT SOLUTION AND
I HATE TO SAY IT, BUT THERE’S
NOT A GOOD ONE.
>> JONATHAN: AND MY THANKS TO
PATRICK TO HUNT FOR HIS
INSIGHT THIS MORNING FOR MORE
INFORMATION ON THE PRICE OF
GAS AND THE EVENTS HONORING
OUR NATION’S HEROES. JUST HEAD
TO CLICKORLANDO DOT COM. I’M
JUSTIN WARMOTH HAVE A GREAT