Americans can expect gas prices to rise to $ 5 a gallon in the coming weeks as oil prices continue to rise in the days after Russia invasion of Ukraineexperts say.
“We are approaching to see that our first-ever average gas price in big cities reaches $ 5 a gallon,” tweeted Patrick De Haan, head of gas analysis at GasBuddy, after the national average rose to 3.61. dollars, which has since risen to $ 3.72 on Thursday.
“This will happen in the next few weeks,” said the oil analyst, listing the cities most affected by the spike in oil prices. Californiasuch as San Francisco, which averaged $ 4.92 a gallon on Thursday, and Los Angelescurrently priced at $ 4.88.
The national average as of Thursday was $ 3.72 a gallon, up 37 cents from February and about $ 1 a year ago, according to AAA data.
The current jump is unlikely to slow any time soon, says De Haan, whose department analyzes fuel prices for more than 150,000 gas stations in the United States, Canada and Australia – as the conflict between Russia, one of the world’s largest oil producers, and Ukraine is intensifying.
“For those who think that this #gasprice jump is somehow unique to the United States and that this is the one that somehow decides to raise prices, it’s a * global * jump in prices due to a loss of oil from a major producer. De Haan tweeted on Thursday.
“Prices are expected to continue to rise as the situation in Russia improves further, which is likely to lead to even higher pump prices.”
The current average for the country is $ 3.72 per gallon, according to AAA data. In states with more expensive fuel, such as California and Hawaii, drivers now pay nearly $ 4.50 a gallon.
The current average for the country is rising as a result of sanctions against major oil producer Russia, up 37 cents from February and about a dollar from a year earlier
“Russia’s invasion of Ukraine has raised high-level fears that oil production could eventually be stifled or even sanctioned by the world’s second-largest oil producer, leading to lower supply as demand increases,” he said. De Haan on Wednesday.
“This opportunity has significantly increased the national average price of petrol over the last week, and the situation could worsen at any moment, keeping gas prices rising for the foreseeable future.”
However, in states with more expensive fuel, such as California and Hawaii, drivers already pay nearly $ 4.50 a gallon, the data show.
De Haan says Americans will see the average rise to $ 4 before the end of March, approaching the highest recorded average of $ 4.11 recorded in July 2008 during the Great Recession in America.
California currently has the highest average gas price of the fifty states – $ 4.80 per gallon, followed by Hawaii – $ 4.52 and Nevada – $ 4.02.
Experts warn that Americans can expect gas prices to rise to $ 5 a gallon in the coming weeks as oil prices continue to rise in the days after Russia’s invasion of Ukraine
Russia is a major producer of energy, hence fluctuations in volatile energy prices, which are then compounded by the inevitable risks of wider conflict, with more countries ready to enter the battle to provoke a full-scale war.
The increase for the year may also be due to problems with inflation and the supply chain, which were then exacerbated by the Russian invasion.
“We believe the war between Russia and Ukraine will increase global and US inflationary pressures by raising oil and gas prices,” Brian Culton, chief economist at Fitch, told CBS News this week.
Oil prices have risen amid supply and delivery concerns sparked by the Russian invasion, with US crude oil and Brent currently hovering more than $ 110 a barrel, their highest level since 2011.
Ukraine’s conflict contributes to significant increase in US gas prices this week, experts say
And a recent round of sanctions by US officials against Russia’s refining industry suggests that the country’s oil and gas exports – which are not yet targeted at Washington – suggest that barrel prices may continue to rise, encouraging more high gas prices.
According to the International Energy Agency, Russia, which has been leveled with sanctions from countries supporting Ukraine to stifle the national economy, is the world’s third-largest oil producer and the world’s largest oil exporter.