Media coverage of the economy places too much emphasis on gasoline prices while ignoring a solid boom in consumer spending, according to Larry Kudlow. He points out that consumer spending increases by 3.5% after inflation.
U.S. oil giants raked in billions of dollars in profits in the third quarter as oil prices surged amid supply constraints caused by conflicts around the world, contributing to higher pump prices for consumers.
ExxonMobil, the largest U.S. oil producer by market capitalization, said it generated more revenue from its refining operations than its exploration and drilling operations for the first time in at least six years.
Chevron’s third-quarter downstream profits also reached their highest level in the same period.
The oil giants’ surge in revenue comes as Americans face higher prices at the pump, as the war with Iran, the disruption of oil flows from the Middle East and the war between Russia and Ukraine have led to targeting of energy infrastructure.
TRUCKING INDUSTRY HIT BY SERIES OF BANKRUPTCY FIlingS AS DIESEL COSTS INCREASE
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U.S. consumers have faced significantly higher gasoline prices this year, with prices sometimes exceeding $4 per gallon nationwide, according to AAA data.
AAA data showed the national average price for a gallon of regular gasoline was $4.20 per gallon Friday, down slightly from $4.43 a month ago but well above the $3.03 per gallon average a year ago.
Diesel prices also reached their highest average price on record last month, when they hit $6.52 per gallon on Sept. 22, AAA found.
Diesel costs are particularly important to the trucking industry, and these costs can affect the price consumers pay for groceries and other goods transported to stores across the country.
REPUBLICANS COULD FEEL THE “SAME FATE” AS DEMOCRATS AS GAS PRICES ARE HIGH AHEAD OF MIDTERM, EXPERT SAYS
U.S. consumers have faced challenges at the pump due to rising oil and gas prices. (Mr. Scott Brauer/Bloomberg via Getty Images)
Recent data from the Department of Labor also reflects the soaring gasoline prices that Americans have faced over the past year.
The September Consumer Price Index (CPI) released by the Bureau of Labor Statistics found that gas prices jumped 9.1% on a monthly basis and 34.2% year-over-year.
ENERGY CEO SAYS AMERICANS ARE NOT BENEFITTING FROM LOW PRICES DUE TO MAJOR HIGHWAY ARM
The war in Iran has disrupted energy supplies this year, contributing to rising prices at the pump. (Giuseppe Cacace/AFP via Getty Images)
Gas prices have undergone significant changes since the start of the war in Iran in late February, with BLS data showing monthly upward fluctuations of 21.2% in March, 5.4% in April and 7% in May.
A slowdown in the conflict over the summer allowed gas prices to fall on a monthly basis by 9.7% in June and 2.9% in July.
However, concerns over the prospect of renewed hostilities and the impact on energy supplies have caused prices to rise again over the past two months, rising 3.9% in August and 9.1% in September, according to BLS data.
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Reuters contributed to this report.
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