BC Record: Highest Gas Prices Ever in History of North America

Business Global

March 11, 2022
NYCBC

Here is some interesting perspective on the current gas situation:

Gas Cost per Gallon in Countries with World’s Largest Oil Reserves ($US)

1. Venezuela $0.10
2. Saudi Arabia $2.35
๐Ÿฏ. ๐—–๐—ฎ๐—ป๐—ฎ๐—ฑ๐—ฎ $๐Ÿฑ.๐Ÿฒ๐Ÿญ
4. Iran $0.19
5. Iraq $1.94
6. Kuwait $1.31

(Thanks to Dr. Jimmy Yan)

At NYCBC we also wonder if it has anything to do with the trending interest to jump-start and fast-track all those domestic energy development projects (many of which were being hotly contested not so long ago) throughout the Western world. Here is one related perspective:

…According to the IEA, Russia is the third largest oil producer in the world behind Saudi Arabia and the U.S. and it is the largest exporter to global markets. Sanctions on Russian oil would mean a massive shift in supply and multiple markets rushing to fill the gap.

Just the threat of cuts to Russian oil ย caused large overnight price spikes in gasoline in the U.S. and Europe. Brent crude prices skyrocketed from $90 a barrel to $130 a barrel in a matter of a couple weeks.I donโ€™t think it will stop there, either.

I expect crude prices to climb into the $200 per barrel range and gas prices to jump to around $7 a gallon before increased U.S. shale pumping helps balance out the supply (and this is a best case scenario). Some of the price will be due to speculation, but ultimately without Russian oil prices will remain high even if the war in Ukraine ends…

What do you think?

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Sources:

Global Petrol Prices: Gasoline prices, litre

Worldometer: Oil Reserves by Country

 

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