Oil spiked over $100 a barrel on Tuesday, the highest price since 2014.
Gas prices had already been rising due to labor shortages and inflation caused by the pandemic and are now facing additional pressure due to the war between Russia and Ukraine.
Russia is one of the world’s largest energy producers.
According to AAA, which monitors daily average gas prices across the nation, crude spiked to $101.87 per barrel. Brent crude, the international standard, climbed 6.6 percent up to $104.44.
This increase has upped the cost for Americans at the pump, launching the national average for a gallon of gas to $3.61 — eight cents higher than it was a week ago, 26 cents more than a month ago, and 90 cents more than it was a year ago.
“Russia’s invasion and the responding escalating series of financial sanctions by the U.S. and its allies have given the global oil market the jitters,” said Andrew Gross, AAA spokesperson, in a statement. “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.”
The AAA report added that “new data from the Energy Information Administration (EIA), 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.”
“At the close of Friday’s formal trading session, WTI decreased by $1.22 to settle at $91.59. Although crude prices saw some fluctuations on Friday, they surged after Russia launched its military invasion of Ukraine earlier in the week. As the conflict continues, the oil markets will likely respond by continuing to increase the price of crude oil to reflect more risk of disruption to tight global oil supplies this week. Additionally, EIA reported that total domestic crude stocks increased by 4.5 million bbl to 416 million bbl. The current stock level is approximately 10 percent lower than mid-February 2021, contributing to pressure on domestic crude prices.”