The US may experience a gasoline crisis this summer as a result of the EU’s restriction on importing Russian oil and increased demand. Because US reserves were only limited, a reduction in imports could cause them to run out. Any scarcity will probably result in petrol prices spiking once more and raising inflation in their wake.
On January 31, US gasoline inventories are at their bottom point in a decade and are expected to decline even further. Despite the fact that we are one of the major oil producers in the world, a number of variables could lead to fuel shortages and increased costs for American motorists.US oil refineries are reducing gasoline production in order to perform “heavy” winter refurbishment.
Despite the fact that America is a net exporter of gas, the Gulf coast produces the majority of it. Because the demand for gas on the East Coast exceeds the capacity of the current pipelines and because the Biden Administration opposes the construction of new ones, it is actually simpler to import gasoline from Europe than to transport it up from the Gulf.
European supplies are now in danger. A prohibition on the importation of Russian crude oil was pushed through by the EU and goes into force this month. The EU will be unable to meet its own gas needs without supplies from Russia and won’t have any extra to send to the US. This could be terrible news for the East Coast as European imports are expected to decline as summer approaches and more Americans begin to drive.
Not all experts concur; Andrew Gross of the AAA disagreed, saying it would be foolish to attempt to anticipate how the gas industry will look within the next few months. Even he acknowledged that in some areas, the supply might “grow tight.” If so, gas prices might quickly return to their highs from last year. Since Christmas, they have already increased by almost 40 cents per gallon, or to an estimate of $3.51. Costs may soon rise significantly if the administration doesn’t take action to make us independent in our supply of gas.