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Putin to Blame for High Gas Prices, As Biden Increases US Supply
Putin’s invasion of Ukraine and disregard for innocent human life has sent the oil market into a tailspin as the international community boycotts Russian oil.
Gas Prices are Consequence of Putin’s War
The United States has done a good job of distancing ourselves from Russia’s oil industry, even though Russia is the second-largest oil producer in the world. Russia accounts for just 7 percent of total US Oil Imports, meaning we are far less dependent on the Kremlin for oil than other countries.
However, the price of oil is determined by international factors, and because other countries are more heavily dependent on Russian oil than the U.S. is, any cutbacks in the use of Russian oil elsewhere can reduce global supplies, pushing prices higher for Americans.
That is exactly what has happened. In response to the Russian invasion of Ukraine, the international community began boycotting Russian production–including oil, which is a huge economic force for the Russian state.
In the days after Putin ordered Russian troops to invade Ukraine and the world watched war crimes committed against innocent people, the price of gas rose by 83 cents to $4.32.
Putin’s invasion has caused the average American household to increase spending on gasoline by roughly $1,300 every year.
Biden Is Working to Lower Gas Prices
The Biden administration has been working around the clock to lower gas prices and relieve the economic burden of Putin’s war off the backs of hard working Americans.
First, Biden released strategic reserves to deliver immediate relief. The United States led the west in releasing 60 million barrels of oil from strategic petroleum reserves to offset the extreme supply and demand difference facing the market. Thirty million of those barrels came directly from the USA.
By releasing strategic reserves, Biden bought Americans immediate relief from Putin’s high gas prices.
US. oil companies are under producing after cutting back during the pandemic. Biden is working with them to increase domestic oil production and get it to market for prices Americans can afford. Biden is particularly adamant that oil companies stop taking advantage of the market to line their pockets by selling the oil for more even as crude oil prices have dropped.
Gas prices have begun to gradually go down. They are likely to follow this trend as domestic energy production increases.