Gasoline prices are clocking in at $377.3. Diesel prices are clocking in at a whopping $5.359 cents a gallon, states Phil Flynn of PRICE Futures Group.

Heating oil dealers are rationing supply in the Northeast and more than 20 million American households, or one in six American households, are behind on their energy bills. So, in light of all of this what is Biden doing? He is spending billions of dollars of taxpayer money, sending it to other countries to fight climate change.

Biden is also promoting new methane monitoring rules that will impact thousands of storage tanks and US production wells and potentially put most small oil and gas producers out of business. The impact of these new regulations could reduce our oil production by as much as two million barrels a day. That will further increase the cost burden for Americans and their energy bills. But do not feel bad because billions of your dollars will go to the UN Green Climate Fund.

The Wall Street Journal said that “the US owes about $2 billion to the UN green climate fund. The administration has asked for another $1.6 billion for the fund in its 2023 budget. The Wall Street Journal also says that Mr. Biden wants to pledge $150 million to the US fund for climate adaptation and resilience across Africa. They want to spend $13.6 million on the world meteorological organization to collect additional weather water and climate observations across Africa. They want to spend  $15 million more dollars to support the development of early morning systems in Africa by the National Oceanic and atmospheric administration in conjunction with local weather forecasts. Now that sounds very generous but the UN says that we’re not spending enough money.

One of the ways that we could raise money for taxes is by looking at US oil and gas production. The US oil and gas industry is one of the most taxed industries on the planet from top to bottom and is one of the main revenue sources for the federal, state, and local governments. Yet the signal from the Biden administration continues to discourage investment in US oil and gas and continues to try to kill pipelines and create uncertainty in this investment environment. It will lead to higher prices and tighter supplies for all Americans. So when this cold front comes through and your bills go through the roof when you fill your gas tank, at least you know deep down inside you’re paying a lot of money to get a better weather forecast in Africa. That’ll make it all worthwhile.

Oil prices started off strong overnight, opening steady and rallying and now breaking a bit with reports that Ukraine is open to peace talks. The Wall Street Journal reported, “Senior US officials have begun nudging Kyiv to start thinking about peace talks in the event winter stalls its momentum, following Ukraine’s recapture of Kherson in one of its most stunning triumphs of the war. The imminent onset of winter-coupled with fears of inflation spurred by mounting energy and food prices, the billions of dollars of weaponry already pumped into Ukraine, and the tens of thousands of casualties on both sides-has prompted talk in Washington of a potential inflection point in the war, now in its ninth month.” This morning Ukraine’s President Volodymyr Zelenskyy said, “We are moving forward and we are ready for peace, peace for all our country.”

Oil products and natural gas popped overnight as winter is going to descend on big parts of America. Natural gas had a big pop as did heating oil. We are pulling back a bit from the drop in the oil but it seems to be technical in nature. The market awaits more news on the potential for a price cap on Russian oil. But don’t be fooled. Price gaps mean shortages and eventually, the price cap will be bullish for oil.

Bloomberg Reports that “The European Union is “ready to go” with an effort to impose a price cap on Russian oil, Ursula von der Leyen, the president of its executive arm, said Monday. “We have set all the tools necessary in place in the European Union,” von der Leyen told Bloomberg Television in an interview in Bali on the sidelines of the Group of 20 summits. “It is important not only to dry out the war chest of Russia but also very important for many vulnerable countries to have an acceptable level of prices.” She added that the price level hasn’t been decided yet according to Bloomberg. The biggest concern, of course, is that if Russia cuts off oil supplies when the price cap goes into place, Treasury Secretary Janet Yellen said that the US would then tap the strategic petroleum reserve. Wait a second didn’t, we do that already?

Learn more about Phil Flynn by visiting Price Futures Group.