How Long Can Stable Gas Prices Last in Magic Valley?

I’m trying to remember the last time I saw gas prices this stable for such a long period of time.  Caution:  The last time I wrote a story like this there was a sudden price spike.  Still, even a dust up with Iran barely moved oil markets.

While a lot of people seem to believe a dime a gallon is a fair price, stability is really good for the economy and governments.  The latter can make spending plans without fear if they know price stability can keep government fleets on the road. 

An expected price drop following the outbreak of the Coronavirus didn’t last long.  There was a quick plunge and then a rebound.  While some predict an impact from a possible OPEC production cut, the cartel isn’t the powerful force it was from the 1970s and into the early years of the 21^st Century.

A relatively mild winter across the United States has inventories in good shape.  The coming summer driving season generally brings an increase at the pumps.  A good economy through summer may also cause an increase.  With China relaxing tariffs on American products, we could see more demand for crude and eventually the cost per gallon will tick northward.

Twin Falls County Republican Party Chairman Steve Millington has an accounting background.  He often says the cure for high gasoline prices is high prices.  People start driving less, the economy cools and suddenly prices take a nosedive as inventories build.  Which is normal market correction.  It’s the wild swings in prices up and down that can shock an economy.  People who often comment on titles and don’t read the stories sometimes tell me they can’t understand how a sudden 50 to 75 percent plunge would be a bad thing.  If it closes hundreds and hundreds of rigs and economies in Texas and the Bakken Basin crash, it’s a bad thing.  And there are ripple effects.  Which is why a stable price, like treading water, is a good thing.