March 9, 2022 |
Gas prices are at record highs across the U.S. for a third straight day and likely will remain high. President Joe Biden yesterday announced that the U.S. will stop importing Russian oil in response to the situation in Ukraine.
Russian oil, liquefied natural gas, and coal are included in the embargo as punishment for the ongoing attack on Ukraine. Biden said the move targets the Russian economy. Collateral damage to the U.S. economy, though, may be the chief outcome. Consumers will be hurt as inflation continues to climb.
Wyoming Governor Mark Gordon said the president’s ban “is only half a solution.” Gordon said the embargo should be matched by an increase in U.S. domestic production, on-shore and off-shore, otherwise gas prices will continue to increase.
The president shrugged off higher prices at the pump and told consumers to brace for more. Nothing he can do, the president said in response to a reporter’s question while visiting Fort Worth, Texas, Tuesday.
As Biden was blaming Russians, the White House press secretary was blaming the oil industry for recent prices increases. Jen Psaki said the U.S. is producing more oil than ever even though domestic production has fallen below 2020 levels. Psaki also said the industry is sitting on a record number of federal oil leases. American Petroleum President Mike Sommers responded to Psaki’s claims, schooling the White House on how the industry operates.
President Biden was betting on Saudi Arabia to backfill the Russian imports. However, the Wall Street Journal reports that the leaders of both Saudi Arabia and the United Arab Emirates declined the president’s phone calls.
Oil prices remained in the $125-$130/barrel range Tuesday, 10 percent higher than this weekend. Market analysts predict the price will climb much higher, although they fell about 3% overnight. The WTI opened at $117.57/barrel Wednesday morning.
AAA reports that the average price of gasoline nationwide one year ago was $2.77 a gallon. The U.S. average this week is $4.17, which is about what stations in Carbon County are charging. In Cheyenne, gas prices rose to $4.89 for regular unleaded on Tuesday. Diesel is priced at more than $5.00/gallon in state’s capital.
Photo courtesy of the White House.
