Critics of any U.S. president are quick to blame the commander in chief for things that are totally beyond his or her control. (Of course, presidents and their supporters are equally quick to take credit for things that are beyond their control.) The price of gasoline is a perfect example. Former president Donald Trump and his fellow Republicans took credit for low gasoline prices in 2019 [source: Rainey]. And now that Joe Biden is president, gasoline prices are at a seven year high. Is Biden to blame?
The truth is that no president — Democrat or Republican, friend of "big oil" or supporter of alternative fuels — can do much of anything to affect the short-term price of oil, and therefore gasoline. The overriding factor that determines the price of oil from day to day is the market principle of supply and demand [source: U.S. Energy Information Administration]. It comes down to simple economics: When demand is greater than supply, prices rise.
The actual price of a barrel of oil is constantly changing, since oil is a commodity that is traded on the futures market. Buying and selling oil futures is called speculating, because you're making trades based on expectations of future supply and demand.
And for a while, demand was skyrocketing. After the Great Recession ended, demand steadily increased as the global economy recovered and kicked back into high gear. To match that demand, U.S. oil production rose dramatically from around 5,000 barrels a day in 2009 to a record high of 13,100 barrels a day in early 2020 [source: Macrotrends]. Thanks in large part to the drilling technology called hydraulic fracturing (or " fracking"), American oil producers were able to keep pace with demand and keep gasoline prices stable.
The COVID-19 pandemic slashed global demand and hit the oil and gas industry hard. One upside of the global oil glut was lower gasoline prices at the pump. But that's all changed now. The world has reopened and demand for energy is up. The problem is supply can't keep up. Crude oil prices, in response, have skyrocketed. On Oct. 11, 2021 a barrel of crude oil was $80 — the first time since 2014. Compare that price to April 2020 when a barrel was just $40 and you can understand why Americans are seeing red at the pump.
So if gasoline prices are largely at the mercy of global fluctuations in supply and demand (plus the occasional pandemic), what can a president actually do, if anything, to influence gas prices? Find out next.