Blog

Latest news —

US summer fuel shortages could be worse than 1970s oil crisis

Americans could be faced with fuel shortages this summer, the head of the International Energy Agency warned.

Americans could be faced with fuel shortages this summer the head of the International Energy Agency warned
Americans could be faced with fuel shortages this summer the head of the International Energy Agency warned Newsday via Getty Images

MORE ON:GAS PRICES

The United States and Europe could experience fuel shortages this summer that could be worse than the 1970s oil crisis as demand ramps up for travel season, the head of the International Energy Agency warned.

“When the main holiday season starts in Europe and the US, fuel demand will rise,” Fatih Birol told Der Spiegel.

“Then we could see shortages — for example, in diesel, petrol or kerosene, particularly in Europe.”

Birol said the current energy crisis could be worse and longer-lasting than the shocks of the 1970s.

“Back then it was just about oil,” he said. “Now we have an oil crisis, a gas crisis and an electricity crisis simultaneously.”

Oil prices spiked sharply as a result of the outbreak of the Yom Kippur War in 1973 as well as the Islamic Revolution in Iran in 1979.

Gas prices continue to rise as the nationwide average of a gallon of fuel reached 2 according to AAA
Gas prices continue to rise as the nationwide average of a gallon of fuel reached $4.62, according to AAA.

This year, energy prices have been pushed upward after the Russian invasion of Ukraine, which has further disrupted already limited supply.

SEE ALSO

Some gas stations in Washington State are preparing for the possibility that the average cost of a gallon of gasoline could reach $10.

Washington state gas stations run out of fuel, prep for $10 a gallon

Gas prices have soared nationwide, hitting record highs over the Memorial Day weekend.

American motorists are paying a nationwide average of $4.62 per gallon, according to AAA.

Motorists in California were feeling the strongest pinch, with some gas stations in parts of Los Angeles, the San Francisco Bay Area and the Yosemite region charging in excess of $7.25 per gallon — more than the federal minimum wage.

On average, gas in the Golden State costs $6.15 a gallon, more than in any other in the nation, according to AAA. Californians are saddled with higher prices due to taxes and surcharges that are added onto the baseline cost of fuel.

In Los Angeles County, the most populous county in the country, gas prices reached a record $6.16 per gallon over Memorial Day weekend — up almost $2 from the previous holiday record of $4.29 in 2012, CBS News Los Angeles reported.

Fatih Birol the head of the IEA warned that this summer's fuel shortage could be worse than the energy shocks of the 1970s.
Fatih Birol, the head of the IEA, warned that this summer’s fuel shortage could be worse than the energy shocks of the 1970s.

The nationwide average, meanwhile, represents a 40% increase from the start of the year. It is also well above last year’s level of $3.04 per gallon.

Analysts predict that more states will cross the $5-per-gallon average by the Fourth of July holiday as demand is expected to increase while supply remains tight.

Global oil prices also continue to tick upwards. Brent crude, the international benchmark, surpassed $123 per barrel on Tuesday, reaching a two-month high.

West Texas Intermediate, the US benchmark, reached more than $118 a barrel on Monday.