Gas Prices Rise Because Oil Is a Global Commodity
The article argues that U.S. gas prices rise even with domestic oil output because about 40% of crude reaching U.S. refineries is imported, and oil markets are globally interconnected. Prices are set by global traders, and crises—such as Middle East conflicts or supply chokepoints like the Strait of Hormuz—send prices higher worldwide. Domestic refineries often rely on heavy crude that’s cheaper to import, and transport costs plus regional supply dynamics can keep prices elevated. The so‑called Rockets and Feathers effect means prices jump quickly on crisis news but fall slowly as demand remains high and retailers don’t rapidly slash prices.
