The world is experiencing a gas shortage that has led to high prices in the United States.
Gas prices are currently soaring in the United States, and drivers are looking for answers. The price of gasoline in the U.S. is up more than 60 cents per gallon since February, according to AAA’s Daily Fuel Gauge Report. Drivers in Los Angeles are paying an average of $4.01 per gallon for regular unleaded, and prices could continue to rise as demand outpaces supply.
So why is gas so expensive right now? It all comes down to a worldwide gas shortage caused by several factors, including a slowdown in oil production and OPEC’s decision not to cut oil production.
What is causing the gas shortage?
President Trump signed an executive order on September 19th that allows him to force U.S.-based oil companies to produce more oil. The order was issued after Hurricane Dorian forced refineries along the Gulf Coast to shut down.
OPEC decided not to cut oil production . On September 27th, OPEC leaders decided not cut their oil production despite a global supply glut that has been driving down prices since mid 2018.
Saudi Arabia said it would increase its own output. Saudi Arabia’s Energy Minister Khalid al Falih said on October 7th that his country would boost its own output by about 200,000 barrels per day within two weeks.
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