Every morning, gas prices continue to rise. You'll most likely see it on your way to work in the morning. Russian oil accounts for only a small portion of our gas. So, why is it so expensive?
We may not bring in much oil from Russia, but we don't have to import Russian oil for it to affect the pricing here, according to the studies and experts. That's because in the realm of oil, everything is one barrel.
According to data from the United States for the year 2021, US imported around 3.3 percent of our energy from Russia. As a result, it isn't much at all. However, this does not affect the price of oil.
US Gas Prices Set National Record
The price of oil is determined by the worldwide supply. Oil prices will be affected by any disruption in supply anywhere in the world. To summarize, the price of oil is tracked all around the world. Any delays in supply or uncertainty everywhere causes the price to rise. Because gas is derived from oil, its price rises in pace, as per WUSA 9.
The national average price of gasoline has reached $4 per gallon for the first time in over 14 years. The price of gas has risen by more than 40 cents a gallon in the last week, and is $1.30 more than a year ago. The countrywide average price might reach new heights in a couple of days.
After Russia's invasion of Ukraine, oil prices soared into the triple digits. Russia is the world's second-largest oil producer, accounting for 10% of worldwide output. Oil markets are concerned about geopolitical risk because of the possibility of supply disruptions as a result of conflict.
Bank sanctions, divestment from Russian oil and gas, oil import restriction threats, and traders avoiding Russian oil pushed prices further higher.
What Does the Biden Administration Should Do?
According to NY Post, there isn't a simple button that President Joe Biden can press to make the suffering at the pump go vanish. The release of 60 million barrels of oil from government stockpiles will be small and temporary.
By temporarily eliminating the mandate to transition to summer gas blends, the government might give some economic assistance. Summer blends evaporate more slowly, lowering emissions but increasing costs by up to 15 cents per gallon.
President Biden isn't the only one responsible for the $4 per gallon gasoline price, but that doesn't justify the administration's bad policy choices. The government immediately banned new lease sales on federal lands and waters and blocked the Keystone XL project.
Greenlighting these projects would not have an immediate price impact, but it would offer investment stability, generate employment, and maintain America's status as the world's greatest oil and gas producer.
The rate at which gas prices have risen throughout the world is staggering. And, according to GasBuddy, the "rapid and furious" rise in costs isn't going to stop anytime soon. Gas prices have been steadily rising since 2008, smashing previous highs.
Many gas price records have been broken as a result of Russia's war in Ukraine, which has prompted Western countries to impose harsh sanctions on Russia, limiting Russian crude oil supplies to the worldwide market, according to GasBuddy.
