Oil crisis and politics in the US

Written by The Frontier Post

According to western media, the average price per gallon of gasoline in the United States hit another high of $4.483, with some states asking for about $6 for the same quantity. According to the American Automobile Association (AAA), the average price of gasoline in the US has risen by another 3 cents since Friday, and for the year the rise in price was almost $1.5 for a unit of diesel fuel, while on average, the rise in price was more than 2 dollars for the current year. Currently, a gallon of gasoline is being sold for $5.983 and diesel price has been fixed at $ 6.548 per unit in California and some other states of the US.

The global economy hit a series of events in the past two years including emergence and restrictions of COVID-19 pandemic, US trade war with Russia and China, war in Ukraine, and global rivalry in the Indo-Pacific region. All these events disturbed the global supply chain and widened the gap between demand and supply of certain commodities and fuel around the globe which prompted extraordinary inflation across the globe. Being the largest oil producer in the world, the United States is still not energy independent and imports more than 40% of its energy needs from other countries including Canada, Russia, Mexico, Saudi Arabia, Nigeria, Ecuador, Brazil and Colombia. The current geopolitical and economic situation in the world had badly affected the American oil market, while oil prices rocketed high in all parts of the United States. President Biden banned oil exports from Russia in March in response to Moscow invasion of Ukraine, which halted the supply of almost Country’s 7% of the country’s energy needs. Although, US President ordered the release of one million barrels of crude oil per day from US’s Strategic reserves for the next six months in a bid to control the impact of inflation, these arrangements proved to be insufficient to fulfill US domestic requirements.

In fact, the actions of the United States and the west had been the drivers of the ongoing economic crisis in the world, because after Russia’s invasion of Ukraine, the United States and allies imposed unparalleled economic, financial and trade sanctions along with selective measures against Russian oil industry to penalize Aggressive Russia, however these sanctions, restrictions and trade barriers proved to be a double edge weapon for the west which not only hurt the enemy but also create problems for the western economies at large.

The Biden administration perceives it a transitory phenomenon which has been arisen by hangover from the pandemic and imposition of sanctions against Russia, however Democrats are likely to pay its political price in the forthcoming mid-term elections in various states of the US. American Republicans are of the view that the current upsurge in fuel prices are more linked to the internal policies of the Biden administration instead of external factors including war in Ukraine.

Apparently, developed nations and third world countries have different perspectives regarding global challenges, economic matters as well as civic snags, while great powers have their global agendas. After all, the internal politics of all nations usually revolve around public issues and those who decide the fate of other countries always become helpless in making their own fortune.

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The Frontier Post