There are many reasons why the price of oil went up and then went down a little. The figure below plots miles driven in America. While there was some drop off during the pandemic, miles driven has resumed its upward trend, as if the disruption never happened. This illustrates that there is very high demand for gas right now. If you layer in less supply from Russia, it seems prices will not fall much any time soon.
Source: FRED
Allison Schrager is a senior fellow at the Manhattan Institute. Follow her on Twitter here.
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