As Jen Psaki tries to pass the buck on the gas price screaming ever higher, Americans are feeling their wallets get lighter and lighter each and every time they have to gas up their car at the pump and watch their savings tick away as their tank fills up.
In fact, the energy situation has now gotten so bad that the price of oil just hit $130 in some trading. As reported by DNA:
Brent crude oil price soared past $130 a barrel on Monday, the highest level since July 2008, amid worries over the prolonged impact of the Russia-Ukraine crisis on the global economy and disruption in the supply of petroleum products. Brent crude oil price surged over 10 per cent to $130.84 a barrel in London. Brent crude, also known as London Brent, makes up more than half of the world’s globally traded supply of crude oil. In US West Texas Intermediate (WTI) crude oil price surged to $125.60 a barrel.
That’s right, the price of oil just hit a high not seen since 2008, when the Iraq war was still in full swing and the Great Recession was happening. Perhaps, with the oil situation, financial problems, and escalating global situation Biden is the new “W”, not the new Carter.
MarketWatch, giving more detail as to why the massive price swing happened now, attributes the price action to Blinken’s claim that the US might ban Russian oil. In its words:
Oil futures remained sharply higher early Monday after the U.S. benchmark briefly topped the $130 level in electronic trade the previous evening as momentum builds for a ban on Russian oil imports.
Secretary of State Antony Blinken said Sunday the U.S. was considering an embargo of Russian oil imports “in coordination” with European and NATO allies in response to Moscow’s unprovoked invasion of Ukraine.
For reference, Blinken, in a speech, said:
“We are now talking to our European partners and allies to look in a coordinated way at the prospect of banning the import of Russian oil while making sure that there is still an appropriate supply of oil on world markets. That’s a very active discussion as we speak.”
Unfortunately, it’s not just oil that’s ticking ever-higher. Other commodities are too, indicating that the economic situation might be about to get a whole lot worse. At Alpha Letter wrote:
Not only is the price of oil exploding to new highs, but pretty much every commodity on the face of this planet is exploding. That’s because we are at the tipping point in the business cycle where normalized inflation is beginning to turn into a hyperinflationary state. Prices are skyrocketing and [it’s] not slowing down…
Commodity price changes over the last year…
Heating Oil: +90%
WTI Crude: +80%
Brent Crude +79%
Nat Gas: +69%
— Charlie Bilello (@charliebilello) March 3, 2022
So, while this spike in the price of oil might be thanks to the Russia-Ukraine conflict and Blinken’s claim that oil imports from Russia could be embargoed, other commodities are increasing too, with no real slowdown in sight.
None of that is good news for America, but the price at the pump might be the worst part for now.