PERMIAN BASIN, Texas (NEXSTAR) — Historians will likely look back at this week as one of the most volatile the energy sector has ever seen.
The United States outright banned oil exports from Russia after waging war against neighboring country Ukraine.
Also, the average price for a gallon of gasoline broke records.
These changes occurred in a short amount of time, and all of it is trickling down to the consumer.
But is there an end in sight? The short answer is no. Here’s why.
A barrel of crude oil skyrocketed above $130/barrel this week.
Also, inflation is taking a bite from American wallets. Families are paying more for the same products and services in the past. But, on average, pay raises aren’t matching inflation, according to Bloomberg.
As far as when this nightmare will end for some, some industry experts don’t expect it to any time soon.
As it stands now – the Biden administration has some cards to play to try and help ease the pain Americans are feeling.
The administration could turn to OPEC nations, like Venezuela or Saudi Arabia, to boost the capacity of the oil they export.
Biden also plans to release oil from the nation’s stockpile.
It’s too early to determine how much these, and other actions, will bring down the price for gas for Americans.