Here Is Why U.S. Gas Prices Are So High Even Though We Don’t Really Use Russian Oil

I wanted to puke today when I went to the gas station, and a mere quarter tank of gas cost over $25. What in the actual heck?

I knew the Russian invasion of Ukraine was going to cause some problems at the pumps, but I didn’t think it would be this bad. We hardly use any oil from Russia, so what gives?!?

Here Is Why Russian Oil Is Affecting The United States

Russia is one of the biggest suppliers of oil in the world, even if we hardly import anything from the country.

The world oil market is much bigger than just the United States, and we have to think of it this way.

Oil prices are set globally, and since Russia actually supplies a large chunk of the world’s oil, they have quite a large impact on oil prices.

What affects the world oil prices, is going to have repercussions everywhere — including us here in the U.S.

It has to do with supply and demand. The demand is still great, but Russia is supplying much less.

So, when something is in great demand but there isn’t enough supply (worldwide), we are going to see prices skyrocket.

Which is happening. *Sad Face*

For example, if Europe buys less Russian oil, it will have to replace it with oil from somewhere else — perhaps from the powerful Saudi Arabia-led Organization of the Petroleum Exporting Countries. That increase in demand for OPEC oil will send its crude prices higher. And guess who else buys hundreds of millions of barrels of OPEC oil?

You guessed it: the United States.

CNN Business

Why is there less Russian oil to be had?

Because of the mess going on in Ukraine, the Biden administration has banned Russian oil imports into the United States.

The same thing is about to go down in the U.K. They are planning to phase out Russian oil imports by the end of the year.

Oil traders are incredibly nervous to touch the stuff. There’s a ton of uncertainty about buying Russian oil, whether it’s about the ability to close deals given the sanctions on Russia’s banking system, or finding tankers willing to go to Russian ports amid shipping dangers in the war zone.

CNN Business

The powers that be are pricing oil as if Russian oil didn’t factor into the equation at all.

Way less supply equals huge price jumps on the oil that is being sold.

So, basically, don’t expect to see gas prices jumping down anytime soon.