Americans are paying about twice as much for gasoline now as they were early in the Covid-19 pandemic. And the high price of fuel is costing consumers away from the gas pump, too, contributing to decades-high inflation on a range of goods and services.
When oil becomes more expensive, so does everything else. And $20 doesn’t go as far in a car’s fuel tank.
How did we get here?
The run-up in gasoline prices was spurred by a supply-demand imbalance that developed in the oil market during the pandemic. Analysts have said that already-high crude prices could reach $100 a barrel this year, which doesn’t bode well for what Americans pay at the pump or transportation costs throughout the economy. Before we examine the extended outlook for oil and gasoline, let’s review the market forces…
