Oil prices have spiked as Saudi Arabia and Russia extend production cuts of 1.3 million barrels per day through December. This is great news for Oklahoma oil producers, but bad news for American consumers and terrible news for President Joe Biden.
Biden only has himself to blame, and this latest surge in price could cost him reelection. West Texas Intermediate Crude has shot back up to $87 and the average price for a gallon of gasoline could easily surpass $4 again.
U.S. consumers will certainly feel this pain at the pump, like a migraine headache that returns with a vengeance. Goldman Sachs has indicated that if the production cuts stay in place, then oil will surge past $100 per barrel in 2024.
To make matters worse, the Biden administration just canceled the seven remaining oil and gas leases in Alaska’s Arctic National Wildlife Refuge, overturning sales approved by the Trump administration. What laws of supply and demand do the neophytes in the White House not understand? If you produce less oil, prices will rise.
Overall inflation has been trending down recently, prompting the president to proclaim that “Bidenomics” is working. He’s probably going to regret the victory dance when inflation starts to rise again with this latest spike in energy prices that may last a while.
America has forfeited its position of strength in the world by abandoning energy independence. Americans have forfeited far too much of their hard-earned income to inflation, and Joe Biden is about to forfeit a second term as president.