• CBM Pro Logistics
  • November 29, 2023

Why are fuel prices so high?

The reasons for the high fuel prices in the United States are multifaceted. One of the primary reasons is the low supply and high demand for oil . The price of crude oil determines fuel prices, and it has increased due to the war between Russia and Ukraine. Russia is the third-largest petroleum producer worldwide, and its invasion of Ukraine disrupted global oil markets .

Another reason is that refiners are shifting more of their production to diesel and jet fuelThis shift is due to economic reasons, as diesel and jet fuel prices are up far more than gasoline prices .

Additionally, extreme heat across the nation prevents refineries from running at full capacityAAA estimates that extreme heat shut down 500,000 barrels per day of refining capacity this summer .

Finally, hurricane season has begun, and even if a hurricane doesn’t inflict pain on the oil and gas industry, the risks of a storm that could cause problems have risen .

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