PETROL PARADOX

While the US is, by far, the world’s largest oil producer, with domestic daily production approaching 13.8 million bbl/day, 42% more than Saudi Arabia, domestic gasoline prices rose quickly when the Iran War began and have remained high. The reason: US gasoline prices are closely tied to global oil markets because US refineries are configured to process heavy sour crude rather than domestically produced light sweet crude, which is exported.