Some four million barrels of Russian oil per day are available, but investors are pricing oil as if the Russian supply isn’t available. And because of that, even if the perceived supply is low, the demand is high.
According to ABC 7, on Tuesday, the Biden administration banned Russian oil and other fuel imports from entering the United States. However, that doesn’t explain the price increases prior.
Since the invasion of Ukraine, there has been a de facto ban on Russian oil, with most of the country’s oil sitting unsold.
But, here in the U.S., after COVID-19 struck, American oil and gas companies were still hurting after an oil bust in 2020. Coupled with a hesitancy to produce more in light of pushes from environmental policies, the price of gas as of Friday has reached $4.33.
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