by Peter Weinberger

If the United States produces more oil than it uses, why are drivers in Claremont still paying more than $5.50 a gallon?

That’s the question a lot of people are asking right now — and the answer comes down to one simple reality: Oil is not local. It’s global.

“Everybody’s competing for the same barrel of oil,” James Cox, managing partner at Harris Financial Group told USA Today. “It doesn’t matter whether it’s produced in Texas or Iran or Saudi Arabia or Russia.”

That single idea explains almost everything.

Gas prices continue to rise throughout California. The state average is $5.93 per gallon, highest in the country. Courier photo/Peter Weinberger

Yes, the U.S. is the world’s top oil producer, pumping more than 13 million barrels a day. Yes, we export oil. And yes, only about 8% of what we import comes from the Middle East.

But none of that shields us from global pricing.

“It’s a global market. So, oil literally flows to the highest price,” Moody’s Analytics Chief Economist Mark Zandi told USA Today finance reporter Daniel de Vise last week. So when conflict breaks out involving Iran — and especially when it threatens the Strait of Hormuz, one of the world’s most critical oil shipping routes — markets react instantly.

And they react everywhere.

In just over a month, crude oil prices surged from about $67 a barrel to roughly $105 before easing slightly on fluid ceasefire news. That kind of spike moves quickly through the system, from crude markets to refiners to gas stations.

That’s why a war thousands of miles away shows up almost immediately on price boards in Claremont. But there’s a part national stories often miss.

California makes it worse.

Start with geography. California is essentially an energy island. Unlike much of the country, we’re not well connected by pipelines that can quickly bring in additional gasoline from other regions. When supply tightens here, there’s no easy backup.

Then there’s the fuel itself.

California requires a special cleaner-burning gasoline blend. This has helped improve air quality across Southern California, but it also limits where fuel can come from. Not every refinery can produce it, and replacement supplies aren’t easy to find when something goes wrong.

U.S. gas prices continue to climb as unrest in the Middle East impacts the global oil supply. Prices vary widely, ranging from an average of $3.75 per gallon in the Midwest, to $5.88 per gallon in the West. Graphic/courtesy of AAA

That lack of flexibility matters, especially during global disruptions.

Then add refinery constraints.

California has fewer refineries than it used to, and the system runs tight. When one goes down for maintenance or reduces output, prices jump fast. When global oil prices are rising at the same time, the effect compounds.

That’s how you end up with today’s numbers.

As of this week, the national average for gas is about $4.12 a gallon. In California, it’s pushing $6. In parts of Los Angeles County and the Inland Empire — including Claremont —prices above $5.50 are common.

That gap isn’t just about taxes.

It’s a combination of stricter fuel standards, limited supply routes, refinery capacity, and a market that has very little margin for disruption.

And then there’s one more factor people don’t like to hear: oil companies are businesses.

“We produce as much as we consume,” Zandi told USA Today. “But at the end of the day, the producers here are going to sell to whoever can give them the highest price.”

Mike Lopez from Williams Tank Lines prepares to pump 9,000 gallons of fuel into large holding tanks under the Chevron gas station at Claremont and Foothill boulevards on Wednesday.
Courier photo/Peter Weinberger

That means even oil produced in the United States is priced based on global demand, not local need.

If buyers in Asia or Europe are willing to pay more, that becomes the benchmark. And U.S. consumers, including those in Claremont, pay accordingly.

So while it may sound logical to say, “We produce our own oil, so why are we paying more?” that’s not how the system works. We’re part of a worldwide market, and California sits in one of its most vulnerable positions.

There is some cautious optimism.

Oil prices dipped slightly after news of a possible ceasefire, and gas prices may follow. But historically, prices fall more slowly than they rise. And even with easing tensions, experts say prices are unlikely to return to early 2026 levels anytime soon.

For Claremont drivers, that likely means gradual relief at best. As the most expensive state for gas in the U.S., crunching the numbers will only make your pocketbook feel lighter.

At $5.50 a gallon, a typical Claremont commuter driving 15,000 miles a year in a car that averages 25 miles per gallon will use about 600 gallons of gas annually. That comes out to roughly $3,300 a year just for fuel.

At the national average of $4.12, that same driver would spend about $2,500.

That’s an $800 difference every year just for living and driving in Southern California.

The bottom line is this: even in an oil-rich country, we do not live in a bubble impervious to world events. And in California, with its unique fuel system and tighter supply, those global shocks hit harder and last longer.

So when you pull up to a pump in Claremont and see $5.50 a gallon, you’re not just paying for local gas. You’re paying for a global market reacting to risk and a California system that makes sure you feel it.