Oil markets have mostly recovered from the shock caused by Russia’s invasion of Ukraine.
The government has dipped into its strategic petroleum reserve while other countries have stepped up production to take advantage of high prices. This has, in turn, caused prices to stabilize. The Energy Information Administration estimates that gasoline prices will average $4.02 per gallon by the end of this year.
European governments have spent most of the summer stockpiling natural gas and have amassed enough to provide three months of energy. This pushed prices up over the summer but will hopefully dampen the surge in demand as winter sets in. The US, for its part, has ramped up exports to shore up European energy. Somewhere between 60% and 70% of American natural gas is now being shipped directly to Europe. This is a major factor behind the steep increase in price for commodities like steel, glass, and concrete, which are produced in natural gas-burning furnaces.
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