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Old 03-23-2020, 05:05 PM   #1
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10 year lows for fuel prices and many of us are grounded by travel bans

NO "non-essential" (recreational/tourism) travel bans across our borders (US/Canada). Up here, even some provinces are restricting inter-provincial travel, without 14 days of quarantine upon arrival, and some have closed their borders to other Canadians.
What a shame. I haven't seen fuel prices like this since the 2008 global recession.
"All fueled up with no place to go...."
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Old 03-23-2020, 05:10 PM   #2
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But for the travel restrictions the prices wouldn't be so low.

On the other hand, people not working is also driving prices down, and if they are not working they can't go as many places as they otherwise could.
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Old 03-23-2020, 06:30 PM   #3
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Actually, and with all due respect, the prices are so low because of the recent production war between Russia and Saudi Arabia. Both are pumping at record levels trying to punish each other for not agreeing to cut back production.
There's a worlwide glut now, and that's what drives prices down. It took about 2 weeks to hit the pump prices, but it's all for nought, if we can't make use of it.
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Old 03-23-2020, 06:38 PM   #4
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Quote:
Originally Posted by Winterbagoal View Post
Actually, and with all due respect, the prices are so low because of the recent production war between Russia and Saudi Arabia. Both are pumping at record levels trying to punish each other for not agreeing to cut back production.
There's a worlwide glut now,
Thank you for using the term production war rather than price war. They only lower the price by producing more.

But for gasoline I would say the price reductions right now are due to the demand side. They have finished product they need to sell or store. We might see even greater reductions when the price of oil hits.
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