Fuel Prices to Remain High as Drive Season Looms

Key Insights

  • US oil supply has steadily decreased since May 2021.
  • The US oil supply has experienced an unprecedented decline.
  • Oil prices continue to increase for the 2022 driving season.

The great oil crunch that the US is experiencing does not show any slowing signs. The inventory has been steadily tightening since April 2020. The country has experienced a steady decline in barrel production and cannot meet the daily demands of crude oil.

As of March 2022, crude oil production remains at 11.7 million barrels. Once it’s manipulated into a refinery, the measure is at about 15.9 million barrels per day. However, the US manufacturing demand requires 21 million barrels of crude oil per day. Unfortunately, with the gaps in production to need, the supply has suffered. This mismatch results in oil prices rising.

Economists consider the number of days available in the supply to understand the future of fuel prices, exclusive of the Strategic Petroleum Reserve (SPR). One year ago, the supply reported about 45 available days of oil. Today, our available supply is 25.76 days. That is an unprecedented decline to experience in one year alone.

Lowered production and higher demand account for the dramatic drop in supply. It’s crucial that as we approach the 2022 driving season and demand increases, demand will increase to about 17.4-17.5 million barrels a day. Driving season refers to summer in the Northern Hemisphere when fuel demand is typically at its seasonal peak. Tim Snyder warns, “It’s going to be difficult to meet those numbers” regarding production.

“Our inventory numbers are tightening. We will see exclusive what happens in Ukraine and the Baltic States. We’ll see inflationary pressures on the price of the crude oil barrel and, therefore, the [price of] gas and diesel.” Snyder explained.

The petroleum economist urges that an increase in oil production in the United States is “the only and effective way” to reduce the price of gasoline in the US.

Over the last two years, the US Supply started low in the first quarter of 2020. The country experienced an increase in April 2020 to just over 40 million barrels in supply. That supply has steadily decreased between June 2020 to March 2021. Despite best efforts to increase the supply again in April 2021, the country has experienced a steady dwindling since May of 2021.

Follow us on social media for the latest updates in B2B!



Breaking the Cycle and Inspiring Others
July 23, 2024

Nowadays, the traditional path to education is being questioned more than ever and there are numerous stories that provide a beacon of hope for those considering alternative routes. As the number of adults without a high school diploma reaches nearly 22 million in the United States, the importance of understanding and embracing non-traditional education…

Read More
School Safety and Regulatory Compliance
Approaching Safety and Regulatory Compliance with Intent and Purpose
July 23, 2024

In this episode of School Safety Today by Raptor Technologies Michelle Dawn Mooney sat down with special guest, Carrie Mockler, the Vice President of Operations at PublicSchoolWORKS, a Raptor Technologies company. PublicSchoolWORKS is a fully automated, all-in-one learning management system for online training for school staff and a comprehensive risk management program. Key Takeaways: •…

Read More
The Power of Self-Compassion in Leadership and Cognitive Diversity Can Transform Workplaces
July 23, 2024

Mental health and a sense of belonging are critical issues in today’s workplaces. So much that it is essential to practice self-compassion and form a better understanding of cognitive diversity. Leaders today must navigate the complexities of fostering connection and reducing isolation among their teams. Recent studies indicate that 40 percent of employees feel…

Read More
Knox Kronenberg
Passion, Nature, and Fine Art Photography with Knox Kronenberg
July 23, 2024

In the ever-evolving world of fine art photography, capturing the intersection of the old and the new is both a challenge and an art form in itself. Knox Kronenberg, a prominent photographer based in Austin, Texas, embodies this intersection through his work, which uniquely blends historical elements with modern contexts. As technology advances and…

Read More