US – The national price of gas is already at a multi-year high at 3.47 per gallon of gas. Now with possible sanctions on Russia that could cost us more at the pump.
At the close on Thursday, February 17th barrels of oil settled at 91.76 dollars per barrel, that decrease was because of an expectation of oil to enter the global market and calm gasoline prices, but the tension between Russia and Ukraine could stop barrels from flowing.
If the US was to put sanctions on Russia, that may cause the OPEC+ member (Organization of the Petroleum Exporting Countries) to withdraw their Russian oil from the global market and cause a major fluctuation in oil prices.
“More drivers fueling up here coupled with a persistent tight supply of oil worldwide provides the recipe for higher prices at the pump,” said Andrew Gross, AAA spokesperson. “And unfortunately for consumers, it does not appear that this trend will change anytime soon.”
According to AAA.com, “According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks dropped by 1.6 million bbl to 248.4 million bbl last week. On the other hand, gasoline demand rose from 8.23 million b/d to 9.13 million b/d. A decrease in total stocks and increased demand have contributed to upward pressure on pump prices, but rising crude prices continue to play the dominant role in pushing pump prices higher. Gas prices will likely increase as demand grows and crude oil prices remain above $90 per barrel.”
The highest price of gasoline in the US was 4.10 in 2008, if sanctions go forth and we don’t get a handle on demand we may see a new high in the coming months.
The average price of gas in Ohio is 3.25 per gallon at time of posting.
