Why Are Oil Prices So High When The U.S. Remains One Of The World’s Largest Producers?

Why Are Oil Prices So High When The U.S. Remains One Of The World’s Largest Producers?

The national average gas price is more than a dollar higher per gallon then the average price a year ... [+] ago. The prices for grades of gasoline are shown on a sign outside a Conoco station Friday, Nov. 5, 2021, in Denver. (AP Photo/David Zalubowski) The current oil market is unusual. The Covid-19 pandemic has created funkiness and dislocations across the global economy, and the energy sector is no exception. This is not merely a U. S. issue, energy markets are global, and while America remains a top producer, many other things are going on in the market. Today, we're in a situation where global oil demand is rapidly recovering back toward pre-pandemic levels due to widespread vaccinations in the largest oil and gas-consuming economies (the U. S., China, Europe). Life is getting back to normal, with greater mobility, traffic patterns. Global consumption of all refined products, except for jet fuel, is effectively back to pre-pandemic levels. Jet fuel continues to be held back by constraints on international flights, but it's game on for gasoline, diesel, heating oil, etc. So, we've established that demand is surging. How about oil supplies? OPEC+ has kept a tight grip on supply since