Trump says gas prices could remain high amid ongoing uncertainty in Middle East
AT 11.
>> FOR A LITTLE WHILE.
>> THAT IS YOUR QUOTE OF THE
DAY AND IT'S COMING FROM
PRESIDENT DONALD TRUMP. THAT
WAS HIS RESPONSE WHEN ASKED IF
AMERICANS SHOULD EXPECT TO KEEP
PAYING HIGHER PRICES FOR GAS.
THEY ASKED HIM AND THAT IS HOW
HE RESPONDED FOR A LITTLE
WHILE. THE UNCERTAINTY
CONTINUES IN THE MIDDLE EAST
TONIGHT. THE LATEST HEADLINE IS
THAT ISRAEL AND LEBANON AGREED
TO A 3 WEEK CEASEFIRE.
MEANWHILE, THE CEASEFIRE
BETWEEN THE U.S. AND IRAN WAS
EXTENDED INDEFINITELY. HERE'S
ANOTHER QUOTE FROM THE
PRESIDENT ON WHAT WE SHOULD
EXPECT FROM THAT. HE SAID A
DEAL WILL ONLY BE MADE WHEN
IT'S APPROPRIATE AND GOOD FOR
THE UNITED STATES OF AMERICA.
OUR OUR ALLIES AND IN FACT, THE
REST OF THE WORLD IN THE
MEANTIME, IT'S STILL PRETTY
CHAOTIC IN THE STRAIT OF
HORMUZ, A BODY OF WATER WHERE
IT'S A SHIPPING LANE WHERE 20%
OF THE WORDS WORLD'S OIL, YOU
KNOW, MOVES THROUGH. AND IT'S
NOT REALLY BEEN SMOOTH SAILING
THROUGH THERE. WE KNOW IRAN IS
FIRED ON 3 SHIPS IN THE STRAIT
AND WE KNOW THE U.S. HAS SEIZED
AT LEAST 2 SHIPS. IT'S A LOT OF
BACK AND FORTH IN ITS KIND OF
HARD TO KEEP TRACK OF ALL OF
ALL OF IT. SO LET'S TALK ABOUT
THE RIPPLE EFFECTS OF ALL THAT
UNCERTAINTY. THE GAS PRICES
BECAUSE AS PRESIDENT TRUMP
SAID, WE COULD BE PAYING MORE
AT THE PUMP FOR A LITTLE WHILE.
BUT WHAT HAPPENS IF THAT LITTLE
WHILE ISN'T SO LITTLE. WHAT IF
THE PRICES STAY HIGH OR EVEN
GET HIGHER? LET'S GO IN DEPTH.
I INTERVIEWED UNC PROFESSOR AND
YOU SHOULD CHARGE SHE TRACTION
STUDIES INTERNATIONAL OIL
TRADE. SHE DID THIS AT THE
WHITE HOUSE DURING THE BIDEN
ADMINISTRATION.
>> AND SHE GAVE ME AN
INTERESTING MATH EQUATION TO
USE WITH OIL PRICES.
>> THERE ARE 42 GALLONS IN A
BARREL. SO FOR EVERY 10 DOLLAR
INCREASE IN THE BARREL PRICE.
IT TRANSLATES TO ROUGHLY $0.25
PER GALLON RATES. IF YOU HAVE A
$40 INCREASE IN PRICES, YOU SEE
THAT GAS PRICES GO UP BY ABOUT
A DOLLAR PER GALLON.
>> LET'S DO SOME MORE MATH AND
I KNOW ANYTHING. IT'S THAT
PEOPLE LOVE MATH ON TELEVISION
RIGHT NOW. A BARREL OF OIL IS
HOVERING AROUND $100 IN GAS
PRICES IN NORTH CAROLINA SAID
AROUND $3.85. A GALLON. NOW,
REMEMBER SOME OF THAT IS TAX
NORTH CAROLINA TAXES IS 40.5
CENTS ON A GALLON IN THE FED'S
TAXES. ANOTHER 18.4 CENTS.
WHICH TOTALS ABOUT $0.60 PER
GALLON. THESE PRICES ARE TOUGH
FOR A LOT OF PEOPLE AND
BUSINESSES. BUT I ASKED
PROFESSOR CHART WHEN PRICES GO
FROM DIFFICULT TO DEVASTATING,
NOT FOR INDIVIDUAL FAMILIES,
BUT FOR THE ENTIRE ECONOMY.
>> BUT IT'S ONLY IF WE GET TO
EXTREMELY HIGH OIL PRICES.
WE JUST OVER $200 A BARREL
WHICH REALLY WE HAVEN'T SEEN
IN. YOU KNOW, I DON'T RECALL
WHEN WE HAVE SEEN PRICES LIKE
THAT. I DON'T THINK WE HAVE.
THAT'S WHAT IT'S GOING TO TAKE
TO PUSH THE U.S. INTO A
RECESSION.
>> THE GOOD NEWS IS WE ARE
STILL A LONG WAY FROM BACK.
AND THERE'S NO INDICATION THAT
WOULD EVEN HAPPEN ANYWAY.
IN FACT, THE ECONOMY IS SET
UP TO KEEP THAT FROM HAPPENING.
REMEMBER THE GAS CRISIS IN THE
1970'S, AN OIL EMBARGO BY
COUNTRIES IN THE MIDDLE EAST
NEARLY QUADRUPLED THE PRICE
OF OIL. THE VIDEO OF THE CARS
LINED UP AT GAS STATIONS WAS
ALL OVER THE NEWS TO LEAD TO
A RECESSION AT THE TIME THE
UNITED STATES PRODUCED AROUND
140 BILLION GALLONS OF OIL PER
YEAR. IT'S ABOUT 210 BILLION
GALLONS PER YEAR. IF YOU'RE
EARNING. PAUL WROTE IN AND SAID
WE HAVE AN ABUNDANCE OF OIL
HERE IN THE U.S. ENOUGH TO
PROVIDE OTHER COUNTRIES.
WHY ARE WE PAYING HIGH GAS
PRICES? SO THIS IS A COMMON
QUESTION. WE GET THIS A LOT.
THE ANSWER IS PRETTY SIMPLE.
ACTUALLY, THE FREE MARKET
PROFIT AND SUPPLY AND DEMAND.
IT'S REALLY ECON 1, 1, TO TRY
TO KEEP THIS SIMPLE U.S. OIL
COMPANY SELL OIL ALL OVER THE
WORLD, JUST LIKE THE OIL FROM
IRAN AND EVERYWHERE ELSE IN
THE WORLD. IT'S ALL CONNECTED
IN THIS ONE LARGE GLOBAL
ECONOMY. SO WHAT A WAR CAUSES
THE SHORTAGE SUPPLY DROPS ALL
OVER THE PLANET AND PRICES GO
UP ALL OVER THE PLANET. NOW,
COULD U.S. COMPANIES GIVE US A
BREAK ON GAS PRICES? SURE, BUT
THAT'S NOT HOW BUSINESS WORKS.
>> THE OIL COMPANIES, U.S. OIL
COMPANIES ARE GOING TO SEE
BLOCKBUSTER YEARS FOR THEIR
PROFITS, POSSIBLY BE HIRING
>> AND, YOU KNOW, HAVE MORE
HIRE MORE PEOPLE AND IN THE
STATES THAT PRODUCE ENERGY,
RIGHT LIKE TEXAS, NORTH DAKOTA,
OKLAHOMA, THOSE STATES ARE
PROBABLY GOING TO DO VERY WELL.
>> AND THIS IS GOOD NEWS FOR
THE STOCK MARKET. FOR INSTANCE,
ONE OF THE REASONS WE SEE
FLUCTUATIONS INSTEAD OF MASSIVE
DECLINES. IT'S ALSO ONE OF THE
MAIN REASONS WE INVESTED SO
HARD AND IN THE OIL BUSINESS
AFTER THE CRISIS IN THE 70'S IN
THE FIRST PLACE, WE DID IT TO
PROTECT OUR ECONOMY. IT'S A
GOOD THING. NO, I KNOW A LOT OF
YOU ARE HEARING ME SAY THIS AND
YOU'RE SAYING IF IT'S SO GOOD,
WHY DOES IT FEEL THAT WAY?
>> THE U.S. ECONOMY IS REALLY
QUITE INSULATED. AND I THINK WE
HAVE TO MAKE A DISTINCTION
BETWEEN THE PAIN THAT AMERICAN
HOUSEHOLDS AS WELL AS AMERICAN
COMPANIES FACE BECAUSE OF
RISING OIL PRICES. WE HAVE TO
SEPARATE THAT FROM THIS.
THE ECONOMY AS A WHOLE. IF THE
ECONOMY IS DOING SO WELL, WHY
DON'T I FEEL SO GOOD
ABOUT IT? WRIGHT? AND THERE'S
THERE'S A SIGNIFICANT FRACTION
AMERICAN HOUSEHOLDS. I I FACING
THAT LIVE SESSION.
>> LET'S TALK ABOUT THAT.
5 SESSION BECAUSE GAS IS
LITERALLY CONNECTED TO EVERY
PRODUCT AND INDUSTRY IN YOUR
LIFE LIKE GROCERIES, HIGHER
GAS PRICES MEAN SHIPPING COSTS
ARE UP. DIESEL PRICES ARE WAY
UP IN THOSE GET PASSED ON TO
YOU. OIL AND NATURAL GAS ALSO
USED TO MAKE FERTILIZER, WHICH
COSTS 70% MORE NOW THAN IT DID
2 MONTHS AGO, WHICH MAKES
FARMING MORE EXPENSIVE AND
THOSE COSTS AGAIN GET PASSED ON
TO YOU. THEN THERE'S MEDICINE.
THEY USE OIL TO MAKE BACK TO IN
THIS WEEK IN THE UK, THE COST
OF SOME DRUGS SPIKED 30%
BECAUSE OF OIL PRICES.
>> I REALLY THINK IF A RISE
IN OIL PRICES AS A TAX AND THE
ENTIRE ECONOMY. SO EVEN THOUGH
THE ECONOMY AS A WHOLE MIGHT BE
DOING, OK, YOU KNOW, THE IMPACT
ON AMERICAN HOUSEHOLDS AND
AMERICAN COMPANIES CANNOT BE
TONIGHT. AND WHEN EVERYTHING
IS MORE EXPENSIVE TO MAKE AND
SHIP PRICES WILL GO UP ON
EVERYTHING MEANING MORE
INFLATION, WHICH COULD KEEP
INTEREST RATES HIGH OR HIGHER.
>> THE PROBLEM FITS INTO
SOMETHING THAT MANY ECONOMISTS
ARE WORRIED ABOUT. THE K SHAPED
ECONOMY WHERE THE THE WEALTHY
THRIVE. THE TOP LINE OF THE
K THE PEOPLE WHO OWN THINGS ARE
INVESTED IN THINGS AND DON'T
HAVE BAD DEBTS. THEY'RE DOING
WELL OR GREAT HOLDING THE STOCK
MARKET'S STEADY IN KEEPING THE
BIG PICTURE LOOKING PRETTY GOOD
WHILE EVERYONE ELSE. THE BOTTOM
LINE OF THE K STRUGGLES WITH
A DIFFERENT PERSONAL FINANCIAL
EQUATION YESTERDAY ECONOMY,
THE GDP IS PROTECTED FROM
RISING OIL PRICES. BUT MOST
OF YOU OR NOT COSTING YOU MORE
TO GO ANYWHERE BY ANYTHING.
EAT, TAKE MEDICINE AND PAYING
OFF DEBT. TELL ME HOW YOU FEEL
ABOUT THIS. WHAT QUESTIONS YOU
HAVE ABOUT OIL PRICES AND HOW
THEY AFFECT YOUR LIFE. HOW ARE
YOU GETTING BY E-MAIL? 07:00PM