US drivers are largely insulated from higher oil prices caused by Middle East turmoil – but only to a point
Across the US, the average cost of a gallon of regular gasoline has jumped nearly 27 cents in a week, to $3.25, and American consumers are bracing for higher prices at the gas pump as the US-Israel conflict with Iran threatens to disrupt the global oil supply.
That fear has entered the White House too, where Donald Trump’s chief of staff, Susie Wiles, is reportedly hunting for ideas to lower gasoline prices and officials are getting “screamed at” to bring good news, according to Politico.
War in oil-rich countries used to cause panic at US gas stations. Those fears have subsided somewhat as the US has become the world’s largest crude oil producer. And, despite this week’s price hikes, American consumers are somewhat insulated from the global energy shock. The supply cushion has its limits, but those limits are high: US producers can ramp up production quickly if high oil prices are sustained, and the White House is under immense pressure to keep prices low as the conflict continues.
If those American monster pickup drivers would see fuel prices here in Europe, they would probably get seizures. Some places here are approaching 3 dollars per litre.
Maybe that is one of the reasons why American gas guzzlers don’t sell here.
I just filled up last night and it was closer to $6 per gallon, with a few places (known tourist trap spots) going up to almost $7. These are the highest I remember seeing in my lifetime, so it’s definitely leaving a lasting impression
As an aside, this was the year I was supposed to go solar and get an EV… but Trump killing the Biden credits, my timelines may have to be pushed back. But with energy prices skyrocketing due to war (or threatening to due to AI data center buildout) it feels like a more urgent need than ever
That was my plan with EVs too, and also just the selection isn’t great. The range keeps releasing on new models at lower than anticipated ratings. They were even killed Chevy’s compact car with the promise they might return to it if they ever get their new battery made. Ugh, bad years for all this.
Chevy just released the new Bolt.
I’m just jealous we can’t bring in those sexy cars from BYD…
After driving on Irish roads, that’s not the only reason big gas guzzliers aren’t bought. Those roads are damn tight! One of the most fun experiences in my life is driving around the Ring of Kerry. Excellent country.