How Costs, Capacity, and Caution Move the Price at the Gas Pump

28/10/2025 10 min
How Costs, Capacity, and Caution Move the Price at the Gas Pump

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Episode Synopsis

In this episode, we also clarify why oil prices are rebounding without falling into conspiracy theories. U.S. producers report break-even points near $65 per barrel, while West Texas Intermediate crude remains below that level, leading to reduced new drilling and a pause in rig counts. Factors like OPEC and Saudi strategies, seasonal changes in gasoline blends, and replenishing the government reserve all influence the pump price you're seeing. It’s a tug-of-war between costs, capacity, and investor pressure, causing the sudden 40-cent swings you’re experiencing.