Experts Credit Temporary Rise in Pump Prices to Booming Economy, Putin Experts from AAA and the Center for Energy Studies have identified a 95 percent correlation between low crude oil production rates during the pandemic and the current jump in pump prices. As “oil production increases,” prices will drop, they say.
By Main Street Sentinel Staff
A rise in gas prices is troubling consumers, who often hear conflicting reasons for the jump at the pump. Experts have identified at least one culprit: high post-pandemic economic growth.
The price of gas is linked to several factors, the most important of which is the price of oil. There’s a 95 percent correlation between the two prices. According to the Energy Information Administration, “oil demand was so low” during the pandemic that oil producers were forced “to decrease production levels.” As the post-pandemic economy booms and working families take to the roads again, demand for gas has grown quickly, driving up the cost of stored oil, “making it more expensive to make gasoline.”
Jeanette McGee, a spokeswoman for AAA, also pointed to “geopolitical tensions and decisions” as another crucial factor in the price of crude. Since the beginning of Vladimir Putin’s war with Ukraine, 79 percent of Americans favor a ban on Russian oil despite the rise in energy prices.
Because crude pricing, rather than government policy, ultimately determines gas prices, experts say it’s “silly and false” to blame President Biden for the increase.
The President recently released 30 million barrels of oil. from the United States Strategic Reserve to offset prices and aid consumers.