For the past four years, under the Trump administration, the United States has been energy independent. America drilled our own oil and the Keystone Pipline was in development. Gas prices have been low. This is about to change.
President Biden is slowing off shore drilling and fracking with government restrictions and permits. The Keystone Pipeline has also been canceled. America will no longer be energy independent.
Now, state oil producer Saudi Aramco announced it is raising the prices for all grades sold to customers in the U.S. and Europe.
The nation surprised markets last month by announcing plans to unilaterally slash 1 million barrels a day of oil supply in February and March. The pledge has helped buoy benchmark Brent crude by almost 15% this year to around $59 a barrel.
Even so, refiners’ profit margins are tight, with the latest virus waves curbing fuel use in many major economies.
On January 21st 2020, one day after President Bidens inauguration, Aramco raised all pricing to the U.S. by 10 cents a barrel.
With the new announcement, the price of oil in America is expected to go up. Prices to Europe already increased by $1.30 or $1.40 a barrel.
What country will not be affected? China. Its key Arab light grade for Asia will remain at a $1 premium.