Connect with us

Hi, what are you looking for?

Oracle of  Omaha SaysOracle of  Omaha Says

Latest News

The rise and fall of gas prices in election years

Inflation is expected to remain a hot topic as the 2024 campaign season ramps up. The price of gasoline has consistently been an issue front and center in most recent elections.

‘Voters feel the impact of rising gasoline prices, perhaps more than any policy that a politician puts in place,’ said Phil Flynn, a senior market analyst at The PRICE Futures Group. ‘Politicians are very cognizant of oil prices. They’re cognizant of gasoline prices because voters care about them probably more than they do on most issues.’

During President George W. Bush’s first term in office, the average weekly price per gallon of gas was $1.59. That is the lowest price among recent presidential terms. In the 2002 midterm elections, Republicans gained seats in the House and Senate. They picked up even more in 2004 as President Bush was re-elected.

‘There’s a really strong inverse relationship between pump prices and approval ratings at a presidential level, and it hasn’t changed in four decades,’ Clearview Energy Partners Managing Director Kevin Book said.

Prices were higher and more volatile during President Bush’s second term. The average price was $2.77. Costs spiked in July 2008 to a weekly high of $4.17. By Election Day in November, prices had fallen to $2.46. The steep drop did little to help the Republican Party. Democrats added seats in the House and Senate, and Barack Obama was elected president.

According to the American Petroleum Institute, the amount of oil produced on federal lands plummeted while President Obama was in office.

‘When a president comes into office, they can set the stage as far as energy policies that signals to the market that can have a big impact on whether prices rise or fall,’ Flynn said. ‘The reality is the president can make policies that can make prices cheaper than they would have been.’

The average gas price during President Obama’s first term was $3.12. During the 2010 midterm elections, prices were on the rise as Republicans picked up more than 60 seats in the house. Two years later, 2012 marked the highest average price per gallon for any year during Obama’s presidency. Prices fell nearly 40 cents in the two months leading up to election day. Republicans lost eight seats in the house – and two in the senate as President Obama won re-election.

When President Trump came into office, he vowed to increase domestic oil production. During his single term, the U.S. recorded the lowest gas prices since President George W. Bush’s first term. The average cost was $2.57. The average price during President Biden’s partial term, has been more than one dollar higher per gallon with $3.60 as the average cost.

President Biden recently faced criticism over releasing oil from the strategic reserve ahead of the 2022 midterm elections. Prices fell from more than $5.00 in June to around $3.80 in November.

‘Presidents know that their popularity ratings can go up and down with gasoline prices, and they have done some major things to try to cool off prices before the election,’ Flynn said.

President Biden and Democrats have blamed Russia’s invasion of Ukraine for the high gas prices. They also said the release was necessary as the U.S. recovered from the global pandemic. Some energy experts argue the release was in fact strategic.

‘The Biden administration started releasing our strategic reserves as a way to bring energy prices down, which is clearly not what our strategic reserves are meant for. They’re meant for short-term supply disruptions to address short-term price spikes, not as a long-term market manipulation tool in the run-up to the election,’ said Anne Bradbury, CEO at American Exploration and Production Council.

Analysts also acknowledge while policy can influence gas prices, the November drop has more to do with timing.

‘More than likely, what’s happening, before the election in November, it’s less people are driving. Usually gasoline prices go up into Labor Day and then crash after Labor Day because everybody’s back in school, nobody’s traveling,’ Flynn said. ‘It’s a normal seasonal pattern.’

As the 2024 campaign heats up, seasonal patterns likely will not stop politicians from blaming each other for the rise and fall of gas prices.

‘People care an awful lot about the price at the pump, and they don’t care about a lot of the details,’ Book said. ‘It’s very hard to explain a price going up when you’re going to the polls.’

This post appeared first on FOX NEWS
Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.






    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.
    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    A former Republican legislative candidate who traveled to Washington for former President Donald Trump’s ‘Stop the Steal’ rally was arrested Friday and charged with...

    Latest News

    Abbe Lowell, Hunter Biden’s attorney, filed an ethics complaint Friday against Georgia Rep. Marjorie Taylor Green after she displayed censured nude photos of the president’s...

    Stock

    Even as U.S. inflation broadly cools, frozen vegetable prices are hot. The average shelf price for frozen veggies rose by 18% in the past year...

    Latest News

    President Biden has overruled the Pentagon and chosen Adm. Lisa Franchetti to lead the Navy, making her the first woman, if she’s confirmed, to...

    Disclaimer: Oracleofomahasays.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 Oracleofomahasays.com