Russia’s invasion of Ukraine has roiled the oil market, and gas prices continue to increase as well, with AAA experts projecting that the national average will top $4/gallon by mid-March.
The national average has not topped $4/gallon since July 2008
“Russia’s invasion and the escalating sanctions by the U.S. and its allies have given the global oil market cause for concern,” says Morgan Dean, spokesperson for AAA Mid-Atlantic. “Like the U.S. stock market, the oil market responds poorly to volatility. It’s an explosive situation, and a grim reminder that events on the far side of the globe can have a ripple effect for American consumers.”
This past week, the national average for a gallon of gas has risen to $3.61, eight cents more than a week ago, which is 26 cents more than a month ago and 90 cents more than a year ago.
Here in Virginia, the statewide average is $3.43, four cents more than a week ago, 25 cents more than a month ago and 82 cents higher than it was a year ago on this date.
According to new data from the Energy Information Administration, total domestic gasoline stocks decreased by 600,000 bbl to 246.5 million bbl last week. Meanwhile, gasoline demand rose slightly from 8.57 million b/d to 8.66 million b/d.
The increase in gas demand and a reduction in total supply contribute to rising pump prices. But increasing oil prices play the lead role in pushing gas prices higher. Pump prices will likely continue to rise as crude prices continue to climb.
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Chris Graham
