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07 May 2026 / Quick Take
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Copy LinkGasoline prices in the US averaged $4.54 as of May 6, 2026, up 50% since the start of the Iran war. Prices surged after the closure of the Strait of Hormuz, through which nearly 20% of global oil supplies historically flow. Despite the US being the world’s largest producer of oil and a net energy exporter, refineries still import roughly 40% of the crude oil that is used for gasoline from overseas suppliers. As a result, gasoline price trends correlate closely with world crude oil prices.
Crude oil refineries in the US require a mix of different types of crude oil for their operations. In many cases, US refineries procure heavy (or more viscous) crude oil that is more suitable to produce gasoline from international suppliers, while light (or thinner) domestically produced crude is exported from the US to the rest of the world.
Today, the use of widely available heavy crude on global markets allows refineries to operate more efficiently and at lower cost. This stems from the massive investments many refineries made prior to the shale revolution (shale oil is predominantly a light crude variety) when there was concern about the availability of resources for US refiners. The use of heavy crude was designed to guarantee continued operations with supplies from the world
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