January 6, 2019
Statement
Over the last several months, gas prices have it a low in New Jersey. They would have been roughly $.20 cheaper, however Governor Christie at the time passed a gas tax, so price are $.20 higher than what they could have been. Gas prices have recent dropped from $2.75 several months ago to $2.21 per gallon two days ago. It would be valuable to understand possible reasons why gas prices have dropped.
Sources to add variables to the model. More sources more variables that correlate to model at hand.
sources = article1 + article2 + vfa3 + xn (additional source when I find them)
Vincent F. Amen
Quantitative Model
A Model of Donald Trump in relation to the lowering of the Gas Price.
DJT (Donald J. Trump) = x1y1 + x2y2 + x3y3 + xnyn
x1y1 = a1b1 + anbn
x2y2 = a1b1 + anbn
x3y3 = a1b1 + anbn
DJT = oilbarrel1 y1 + supply2 y2 + sanctionexemption3 y3 + relationships4 y4 + donaldtrump5 y5 + xn yn
oilbarrel1 y1 = priceperbarrel1 b1 + decrease2 b2 + an bn
supply2 y2 = increase1 b1 + opec2 b2 + saudiarabia3 b3 + iraq4 b4 + uae5 b5 + russia6 b6 + an bn
sanctionexemption3 y3 = iran1 b1 + exemption2 b2 + supply3 b3 + increase4 b4 + an bn
relationships4 y4 = america1 b1 + saudiarabia2 b2 + othermiddleeast3 b3 + elevated4 b4 + an bn
donaldtrump5 y5 = phonecalls1 b1 + meetings2 b2 + favorable3 b3 + pressure4 b4 + deals5 b5 + an bn
Conclusion
Price of oil barrels is directly correlated to higher or lower gas prices. Oil barrel prices have decreased in Nj over the last several months. Supply of worlds oil producing countries have increased namely OPEC, Saudi Arabia, Iraq, Russia and UAE. Iran has sanctions on their country directly effecting oil prices. The United States issued exemptions, increasing Iran’s oil production and this directly lowered gas prices. America’s relationships with Saudi Arabia and other Middle Easter countries are better than years prior. When we entered the War on Terror, gas prices skyrocketed. Our relations have improved dramatically which effects prices of foreign goods such as oil. President Trump may have directly caused oil prices to drop. This is attributed to his statement to the public that he will negotiate with countries to lower oil prices. President Trump has been on the phone and having meetings with leaders from oil producing countries. These meetings and calls have been fruitful in lowering prices. During these meetings President Trump has put pressure on these leaders to lower prices. After doing so, President Trump on Twitter called it like a tax cut. World leaders, generally speaking have a favorable position on President Trump. This can be directly attributed to America’s clout and President Trump’s business acumen.