Schork Group CEO Stephen Schork initially predicted that Brent oil would reach $ 116 a barrel this month, noting that it took only a few days to reach that value.
San Francisco became the first city in the United States to reach an average of $ 5 a gallon, according to an industry expert, as the conflict between Russia and Ukraine points to oil prices that exceeded $ 113 in trade on Thursday.
| Ticker | Security | Last | Change | Change% |
|---|---|---|---|---|
| USO | STATE OIL FUND LP | 75.02 | -0.34 | -0.45% |
| GAS | on | on | on | on |
“It was pretty ugly because gas prices are rising nationally, but nowhere has the pain been more significant than in California, where prices have crossed the 5-gallon mark,” Patrick De Haan, head of oil analysis for GasBuddy, told FOX Business on Thursday.
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Currently, the state average for a gallon of regular gasoline in California is $ 4,940, according to AAA. That’s a significant jump from the national average of about $ 3,728, according to AAA.
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De Haan said prices “will continue to move north” and could even reach $ 5.35 a gallon by the end of March.
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For several weeks, there have been widespread fears that sanctions against Russia will threaten the global oil market, which is already facing limited supplies, and will ultimately lead to higher gas prices for American motorists.
This week, the United States and other major governments agreed to release 60 million barrels of crude oil from reserves to stabilize supplies, but failed to allay concerns about Russia’s attack on Ukraine as oil prices continued to rise.
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The loss of 10 million barrels per day from oil production “cannot be offset by scarce oil spills,” De Haan said, citing 60 million barrels of crude oil from reserves.
“It will probably take more than 100-200 million barrels to have a big effect,” he added.
The Associated Press contributed to this report.