People

Retail gasoline prices in U.S. jump to fresh record highs on Tuesday

1 Mins read

In a global economy still reeling from the effects of the pandemic, another concern emerged on Tuesday, May 10. Per NPR, the average price for regular gasoline has now soared to $4.37 a gallon.

It is common for fuel prices to increase before summer in the United States. This is due to a more expensive warm-weather fuel blend combined with increased demand as this is the vacation season. Yet, this jump has nothing to do with increased driving activity but instead has a much grimmer origin.

Russia’s invasion of Ukraine has set the oil market off on a roller coaster ride. The current prices have surpassed the $4.33 a gallon spike that was seen in March, shortly after the war began. After the Russian aggression, crude oil hit over $100 a barrel, and the price has not gone down since. What has gone down is the supply of oil due to sanctions on Russia.

According to Brent crude, the worldwide benchmark for oil prices, costs were $105 a barrel on the morning of May 10. Reuters reported that since March 30, Brent crude futures have lost 7%, but gasoline futures rose 9.4%. This, combined with global refineries encountering a bottleneck at the onset of the “driving season,” is creating a perfect storm amidst a sea of threatening inflation. 

Refineries simply cannot keep up with consumer demand due to scheduled maintenance and unexpected disruptions along with a global reduction in crude stockpiles which has peaked at pre-COVID levels.

According to the American Automobile Association (AAA), gasoline prices averaged just under $3 a gallon last year. Increased summer demand, global instability, and a fractured supply chain do not offer high hopes for relief from these prices. President Joe Biden is encouraging domestic oil producers to increase their production to reduce costs, but this has yielded nominal results. His requests that OPEC increases its output have also fallen on deaf ears.

A tactic that will be taking effect is America releasing 180 million barrels of oil from its emergency supply. It is a historic move by the Biden administration to offer assistance during these unprecedented times.

Trending

1397 posts

About author
DN News Desk is the editorial wing of Digital Nod, an award-winning digital PR & marketing agency. Committed to delivering timely and insightful news coverage of global events, DN News Desk's team of seasoned journalists and editors ensures that readers are well-informed about the latest developments across various domains. With a finger on the pulse of current affairs, DN News Desk strives to provide accurate, balanced, and thought-provoking articles that shed light on the ever-evolving global landscape. From breaking news to in-depth features, DN News Desk's contributions aim to empower readers with knowledge and perspectives that matter.
Articles
Related posts
People

Legacy of Controversy: Former Secretary of State Henry Kissinger Dies at 100

2 Mins read
Henry Kissinger, the venerable former U.S. Secretary of State and National Security Adviser, whose indelible mark on American foreign policy shaped the…
People

Snoop Dogg Shocks the Internet by Giving Up on Smoking Weed

1 Mins read
In a surprising turn of events, rapper Snoop Dogg, whose real name is Calvin Broadus, has announced that he is giving up…
People

Tristan Thomson’s Shocking Confession: Feeling ‘Disgusted’ with Himself after Cheating on Khloé Kardashian

1 Mins read
In a candid preview for next Thursday’s episode of ‘The Kardashians,’ NBA star Tristan Thompson, 32, expressed deep remorse and disgust for…