Hold On! U.S. Gas Prices To Further Spike After Europe Blocks Putin’s Oil

I can remember how suprised I was when a gallon of gasoline went over $1.00 a gallon, in 1998, in Orange County, California.

A few days later the price went up again and has not been anywhere close since then. As a matter of fact, yesterday I paid $6.20 a gallon, just a little over 3 gallons for $20.

According to Fox News, Americans are shelling out $5,000 a year on gasoline as prices skyrocket.

The new analysis from Yardeni Research shows the growing burden of rising fuel prices on U.S. households. By comparison, just one year ago, the average American was paying about $2,800 on gasoline. The figure has also climbed rapidly from March, when Yardeni projected that gasoline cost most households about $3,800 annually.

What is enraging Americans from both sides of the aisle, in all economic groups, is the White House’s refusal to allow energy companies to drill on existing wells on federal land, significantly increasing their production levels.

The Biden administration is also preventing new leases in Alaska and other environmentally protected lands.

As Europe and the United States have been increasing sanctions on Russia, the shortage in daily oil production has continued to spike, resulting in even higher wholesale pricing.

Well hold on to your wallet, the EU on Monday agreed to now halt the import of about 90 percent of Russian oil by the end of the year over the former Soviet Union’s invasion of Ukraine.

The move—which comes after the U.S. already cut off Russian oil imports, contributing to soaring fuel prices, adds to the sanctions already weakening the Russian economy to pressure Russian President Vladimir Putin to end his invasion.

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The ban will lead to higher gas prices both in the United States and across the globe “with near certainty,” Patrick De Haan, the head of petroleum analysis at GasBuddy, told Newsweek on Tuesday.

“Since the European Union is a primary consumer of Russian oil, the imbalance that cutting off that oil will create will undoubtedly have implications on oil prices and gas prices,” he said.

Russia produces up to 10 million barrels of oil each day, so cutting off that large amount will make it more difficult to meet global oil demand, resulting in higher prices, he said. He explained that consumers could expect to see prices increase by 20 to 50 cents per gallon, though that range could change by a number of other factors, including if the agreement’s terms deviate.

Consumers can immediately expect to see gas prices rise as the market reacts to the embargo, though its full effects may not be known until 2023, De Haan said.

The impact of the embargo, coupled with a typical increase in gas prices during the summer, means that consumers should expect to see them rise throughout the next few months, Devin Gladden, a spokesperson for AAA, told Newsweek.

Gladden offered potential solutions that could offset some of the increases. International Energy Agency member countries could coordinate to release oil from their emergency reserves, he said.

There are also some measures consumers can take to help prevent gas prices from skyrocketing, De Haan said. He is recommending Americans drive more fuel efficiently by limiting acceleration and driving within the speed limits. This change in driving habits would naturally increase efficiency and could help mitigate rising prices.

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“Basically if every American is trying to drive as fuel-efficient as possible, we could probably cut demand overnight by 5 to 10 percent, which would likely be significant enough to reduce prices in some way,” he said. “Would it bring prices down to $3? No, probably not. But it would cause some drastic improvement.”

The Bide administration, United Nations, and World Economic Forum are calling for dramatic measures including buying a very expensive electric car.


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Conservative independent talk show host and owner of https://FinishTheRace. USMC Veteran fighting daily to preserve Faith - Family - Country values in the United States of America.


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