Filling Up the Tank with Jose Mier
I did a quick check on the oil industry to see what’s happening globally as we continue to ride out the pandemic. The price of a barrel of oil is still low (around $40-$50) which is having an effect on producers like Saudi Arabia. Overall global demand for oil is down as people are traveling much less than in pre-COVID times. However, here in Sun Valley we are not seeing the so-called benefits of this price drop.
When the crisis first hit in March of this year we did see prices fall to the mid $2 range but ever since they have been climbing back up. On average, our Sun Valley, CA gas prices are in excess of $3/gallon. Living in California as we do a big chunk of what we pay is tax on those gallons and because of this we did not see prices dip below $2 like some areas of the country.
Increased summer travel and just a desire to get out of our houses has put more cars on the road. If there is a lower demand for oil worldwide, I’m not seeing evidence of this is Sun Valley. It would be nice to see lower prices locally but the cost of California gas may belie what’s occurring in the rest of the world. We’ll have to wait to see what further affect the worldwide decrease in demand does in future months but for summer in Sun Valley it’s mostly (oil) business as usual.