Gas Prices

When Russia invaded Ukraine on February 24, 2022, it devastated the world. One of the small yet insidious consequences of the invasion have been on gas prices. Gas prices have now risen drastically worldwide, with the average national price at $4.23. In the wake of these gas prices, public unrest has prompted Biden to take action.

On March 8, 2022, President Biden issued a ban on all Russian oil imports. While it came as a shock to many, America is one of many countries to cut off Russia’s oil imports, with the UK planning to stop all Russian oil imports by the end of the year.

However, the US is the highest producer of oil in the world, so only 8% of the US’s gas imports are from Russia. Russia isn’t far behind, being the third highest oil producer in the world. Many European countries are feeling the hardest effects as many countries, such as Germany, rely heavily on Russian oil.

To further combat gas prices, Biden announced yesterday that he would release 1 million barrels of oil per day for six months from the US Strategic Petroleum Reserve. The total output would be 180 million barrels of oil, the most the US has ever put on the market.

While the war doesn’t affect the US directly, the gas providers do. Companies such as Shell, Exxon, GP, and more saw a 57% increase in their profits after the price hike. In his announcement, Biden warned: “No American company should take advantage of a pandemic or Vladimir Putin’s actions to enrich themselves at the expense of American families.” 

After Biden’s announcement, crude oil prices decreased by 5% in one day. However, the long-term effects of these actions are yet to be seen. Many countries are being called to action, but will they be able to fix the global economy?