Price Of Freedom: Get Ready For $6 Diesel
Due to the ban on Russian oil imports because of the invasion in Ukraine, fuel prices shot up across America. The cost of a diesel gallon on Thursday in the US was $5,058. Experts say that’s not the limit.
On March 8, President Biden said that one of the Western sanctions against Russia, that invaded Ukraine two weeks ago, would be a ban on import of Russian oil and gas.
According to CNBC, in response, West Texas Intermediate crude increased 7% in futures and is trading above $128 a barrel. Brent crude jumped 7,7% to $132,75.
Recall that in the morning February 24, Russia launched air strikes on all major cities of Ukraine. Russian President Vladimir Putin announced the start of a «military operation» in Ukraine. However, it was about a full-scale war on the territory of an independent peaceful state.
Critics believe that the Biden administration’s policy of restricting oil drilling is hindering U.S. oil production. At the same time, officials say US oil and gas production is nearing record highs, while thousands of federal drilling permits remain unused. Thus, federal policy doesn’t limit oil and gas production.
Many believe that the best way to avoid high gas prices in the future is to accelerate the transition to clean energy and clean trucks. «The only option to deprive Putin of the ability to use oil as an economic weapon is to reduce our dependence on oil,» experts say.
The US Department of Energy pledged to release 30 million barrels of crude oil from the US Strategic Petroleum Reserve to ensure an ample supply of oil in response to a further Russian invasion of Ukraine.
