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Why Russia’s War Drove Up U.S. Gas Prices
2 years ago
5
Gasoline prices rose to record highs in the United States after Russia invaded Ukraine. But the U.S. is the largest oil producer in the world and imports very little petroleum from Russia. So why did prices jump? Because oil is a global commodity and supply or demand shocks can reverberate around the world. There are also other factors that have made it challenging for oil producers to respond - foreign and domestic U.S. producers have been pulling back production in recent years. A series of boom and bust cycles and the effects of the coronavirus pandemic have drained the industry of qualified personnel and made companies wary of big investments.
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