US Gas Prices Skyrocketed on Russia-Ukraine Conflict

On Monday, US gasoline prices at the pump skyrocketed to their highest since 2008 amid the escalating Russia-Ukrainconflictct.

The American Automobile Association (AAA) reported that the average regular-grade gasoline posted at $4.07 per gallon.

Subsequently, gasoline price provider GasBuddy mentioned that the average price of US gas spiked by nearly $0.41 per gallon.

It stands just $0.03 below the 14-year high of $4.10 per gallon. The record in 2008 came as the US crude futures surged to $147.27 a barrel.

The latest figure edged up 11.00% from $3.60 a week ago. It also increased 45.00% from $2.76 from the same period last year.

Moreover, Gasbuddy cited that the weekly increase was the second-largest ever. It is behind the jump of $0.49 per gallon in 2005 after Hurricane Katrina tore through the US Gulf Coast.

Accordingly, the most expensive gas in the country is in California at $5.34 per gallon. Then, Hawaii recorded $4.69 per gallon, followed by Nevada with $4.59 per gallon.

At the same time, US gasoline futures strengthened 4.78% or 0.17 points, to $3.72 per gallon.

In line with this, experts noted that pump prices would likely continue to elevate as crude futures continue to step higher.

The stunning rally followed international sanctions targeting Russia that have upended commodity markets across the globe.

Correspondingly, the upturn of US gas prices followed the hike of crude contracts as the West considered banning imports of Russian oil.

US Gas Prices Up as Crude Futures Soar

Brent crude’s international benchmark elevated 5.75% or 6.79 points to $125.03 per barrel.

Eventually, the US West Texas Intermediate (WTI) rose 5.92%, or 6.79 points, to $122.42 per barrel.

In line with this, both contracts are on course for their highest daily percentage gains since May 2020.

They are also near their highest in July 2008, with Brent at $147.50 a barrel and WTI at $147.27.

Consequently, analysts expected oil prices to soar to $185.00 per barrel this year.

Russia’s exports produced around 7.00 million barrels per day of oil and refined products. It represents 7.00% supply across the global supply.

Experts explained that the cut-off of Russian oil exports could lead to 5.00 million barrels or a more significant shortfall.

Thiconflictct could push crude prices from $100.00 to $200.00 per barrel.