The ripple effect of sanctions imposed by the US on such major oil producers as Russia, Iran, and Venezuela can be seen everywhere, including in the US itself. American citizens now feel the toll of a dubious policy employed by their authorities, which predictably led to gasoline prices soaring inside the US. In addition to this, the rally in gasoline and diesel prices was further fueled by significant oil production cuts by Moscow and Riyadh. Notably, high gasoline prices may even cloud President Joe Biden's reelection outlook. Russia has scaled back its oil production by 300,000 barrels a month until the end of 2023, while Saudi Arabia has cut its output by one million barrels. According to OPEC+ projections, “the global daily deficit will touch 3.3 million barrels in the fourth quarter.” Data from the International Energy Agency (IEA) also highlighted that global fuel consumption reached a record 103 million barrels per day in June. Naturally, the cost of petroleum products also surged. Across the Atlantic, the price for a gallon (3.79 liters) of gasoline and diesel is inching closer to four dollars. While the US retains its position as the world's leading oil producer, its refinery capacities have dwindled by 900 barrels a day since late 2019. The growing energy demand is depleting oil and gasoline reserves, and refineries are grappling with a shortage of crude oil grades that are suitable for diesel production. Currently, the cost of a diesel gallon in the US stands at $4.58, up from $4.34 just a month ago. The situation was aggravated by Russia's decision to indefinitely restrict gasoline and diesel exports in order to stabilize its domestic market.
