As a new Trump supporter I am being asked why the ... (
Gasoline is a derivative of crude oil.
Crude oil is a high-demand global commodity,
the factors affecting the price of gasoline are,
The cost of crude oil
Refining costs and profits
Distribution and marketing costs and profits
Like most commodities, the fundamental driver of oil's price is supply and demand in the market.
Oil markets are composed of speculators who are betting on price moves, and hedgers who are limiting risk in the production or consumption of oil.
Oil demand is driven by everything from gasoline for cars and airline travel to electrical generation.
Oil production in North America was at an all-time zenith in 2019, with fields in North Dakota and Alberta as fruitful as ever.
In January, 2021, the price of a barrel of crude was hovering around $52, today it is climbing above $116.
Supply and demand was turned on its head during the protracted Covid lock downs.
Travel was seriously curtailed, people were forced to cut way back on driving.
Gasoline usage dropped precipitously and tax revenues fell proportionately.
The single biggest influencer of oil prices is OPEC.
OPEC members are Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Republic of the Congo, Saudi Arabia, United Arab Emirates, and Venezuela.
You will note the United States, Canada, Russia and China are not members of OPEC.
Keep in mind Russia's invasion of Ukraine is shifting the paradigm in oil production and supply.Please explain your reasoning in how the US congress could possibly legislate the price of oil,
and how any law could reduce inflation.