Why is gas going down in price?

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Down to $3.80 where I live, and this is after the Strategic reserves were only releasing 10 million barrels for November....and OPEC cuts...

The Dollar is strong, very strong. I do not know why it is trending down. Is it demand? If it is demand, and we know the "lockdowns" are over, then are we going into a recession?
 
Hasn't gone down much here.
 

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I paid $2.96 for 87 E10 last night in La Crosse WI.
Wholesale prices seem to be around $2.50, and crude has dropped substantially recently.

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According the the EIE, demand for July and August (last months available) were at 20 year lows if you excluded 2020 pandemic year. You could extrapolate that its likely similar now.

The lower demand is not just people driving less, but more efficient vehicles and EV's are slowly starting to cut into the usage a little as well.

Also, a really strong US dollar helps since its a global commodity, although most of the oil we get here at this point is from N. America.



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If I were to show pics of the pump I could show you $3.719 regular and $3.59 if I drive around enough.. remember that 9/10th of a cent, as far as I know that is still a thing.
 
I heard they were almost depleted.
They are at higher levels than a variety of times in our history.

Worth noting we only had 124 active oil rigs in 2020 and are now up over 700 and slowly growing.

Right now we still lack refining capacity but a large number of “big spenders “ have been getting laid off the last 6 months.

With layoffs and a slowdown in the high end of the economy you will continue to see demand soften.

How much this drops prices will depend on whether the rest of the world starts reducing or increasing demand.

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