Drivers are stuck in limbo as world's oil supply reshuffles

NEW YORK (AP) — At a gas station outside New York City, retired probation officer Karen Stowe was faced with a pump price she didn't want to pay. She bought groceries from the convenience store instead, planning to buy cheaper gas elsewhere.

“The price is so high, people have to think very hard about where they’re driving to,” said Stowe, who had just been volunteering at a food pantry. “People are in trouble, and that’s the truth.”

Though drivers in the U.S., Europe and elsewhere are getting a break from the sky-high gasoline prices they endured over the summer, the cost is still difficult for many who have been struggling with relentless inflation. The U.S. average was $3.19 per gallon, down from a record $5 in June, while European Union pump prices have dropped nearly the equivalent of 40 cents, to $6.58 per gallon, since October.

Drivers now hope the situation doesn't get worse after a series of cutbacks tied to Russia's war in Ukraine, accidents and the slowing global economy have strained the world's oil supply. While oil and gasoline prices have dropped despite a recent supply crunch, those threats could end up pushing costs higher this winter.

What's the world facing?

— An EU ban on imports of most Russian oil took effect last week.

— At the same time, the Group of Seven leading democracies and 27-nation EU capped the price of Russian crude for other countries at $60 per barrel.

— There was a major leak along the Keystone pipeline in the U.S., which halted oil shipments along a major corridor.

— Dozens of oil tankers were stuck in Turkey for days.

— The OPEC+ coalition of oil producers has cut back production.

“The global system can withstand probably a few more days of these outages, but if they persist,...