The numbers: Yesterday, the national average price for regular gasoline hit $4 a gallon, the highest since July 2008.
What’s causing the spike: Traders, shippers, and financiers are moving away from Russian oil, 7.5% of the world’s supply. The global oil market was already in a serious supply crunch, and without Russia’s oil, it’s even worse.
- Note: only around 3% of America’s oil is imported from Russia.
- Germany expressed hesitancy about the gas embargo on Russia, citing the burden on their people.
What the U.S. can do about it: Although Biden just released 40 million barrels from reserves to lessen the impact on gas prices, his actions are ineffective. America has enough resources to increase its oil production and curb the low global supply.
- Elon Musk said that “we need to increase oil & gas output immediately... Extraordinary times demand extraordinary measures.”
- During the pandemic era of high gas prices, oil companies raked in record profits.