economy
Get Used to High Gas Prices
Even if the Iran war ends tomorrow, don’t expect relief at the pump any time soon.
TL;DR
- Donald Trump's approval rating is low, largely due to high gas prices attributed to the war with Iran.
- Global oil inventories have dwindled, and the U.S. Strategic Petroleum Reserve is at its lowest level since 1983.
- Reduced refining capacity and a widened "crack spread" are keeping refined gas prices high, even if crude oil prices fall.
- Gas prices "rise like rockets but fall like feathers," meaning they are slow to decrease even when oil prices drop.
- Drivers tend to become accustomed to higher prices, reducing competitive pressure on gas stations.
- Even if the war ends, high gas prices are expected to persist through the November midterm elections.