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Former Shell Oil President John Hofmeister breaks down the issues impacting the price of oil.
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-- please gas prices down again over the weekend bringing the national average for a gallon of regular to 372.
And diesels down to four dollars and four cents a gallon gas prices down in eleven straight days is a look at oil.
We're down to 94.
Dollars a barrel.
Let's bring in John -- -- he's the former president at Shell Oil league joins us from Houston are Joan.
Why is -- down so much my personal opinion is it's an indicator of a very weak American economy -- -- you.
-- I agree with you a 100%.
This happened -- we a year ago if you went back and -- played shows a year ago we went exactly through the same thing.
In the spring that -- saw prices go up this year it started earlier however.
And then the Americans stop spending they don't have the disposable income to both Paper higher fuel prices.
And by the other things that keep the economy strong.
So lacking any kind of a plan for the future we are in a seesaw mode where every time prices dropped spending goes up the economy looks stronger.
As soon as the economic demand raises the demand for oil prices go up disposable spending goes down on other items.
We have zero political leadership on this issue Stewart on and we're just gonna face this seesaw back and forth.
John John John Jolie the president will say I was gonna beat up on those speculators and that's -- they backed off on brought the price of oil down.
He will take credit for this than you think.
There's no law against distorting reality when your running for office I wish -- where.
But the fact is he could say whatever he wants to say.
But for the first three years of his administration he did nothing but frustrate the opportunity for American companies to expand their resource horizon.
And now that weren't an election year oh it's all in all the above energy strategy well and -- will look like.
That -- came at the right time to solve the problem except he did not easy is it.
Could you say that there is of the loss of oil on the market at the moment is that.
I think there's excess oil on the market because the the economic demand in China.
Has regressed.
The economic demanded India we see it falling flat on its face.
America is down Europe is in a swamp -- no idea where that's headed.
And so we see globally we have more production and we actually need today with the saudis continuing to pump.
Extra oil to make up for the shortfall that may come out of Iran.
So yes at this level of economic negative growth and I consider -- negative but that's not stronger positive.
We're gonna see continued glut of oil for some period of time.
Prices could fall further that's good for consumers in some respects.
But the underlying problem that an eight robust economy the world cannot produce enough oil without America.
Bit of producing its fair share so to speak we're gonna see high prices stifle any future economic growth.
When we come out of this downturn John -- my so always a pleasure we thank you again for joining us Joan good stuff thanks very much.
