The U.S. is the world's leading oil producer. So why are gas prices soaring?

Motorists are paying sharply higher fuel prices since the outbreak of the Iran war, despite the U.S. being the world's largest oil producer. Why? Edited by Alain Sherter In:

Motorists are paying sharply higher fuel prices since the outbreak of the Iran war, despite the U.S. being the world's largest oil producer. Why?

After all, as of 2023 (the latest data available), the U.S. churned out roughly 13 million barrels of crude a day, according to the Energy Information Administration (EIA). That compares with roughly 10 million barrels from the world's No. 2 and No. 3 producers, Russia and Saudi Arabia. 

On Tuesday, the average national gas price in the U.S. rose to $3.79 a gallon, up from $2.92 a month ago, according to AAA. A gallon of diesel costs has shot up to more than $5, the highest level since late 2022.

And here's the thing: The U.S. exports much of the oil it produces, selling it to foreign purchasers. We also remain a major importer, with the U.S also the world's biggest user of oil, data shows.

"The global market sets the price. The provenance of the oil we're filling out gas tanks with doesn't matter," said Bernard Yaros, lead U.S. economist at Oxford Economics.