Global Tensions Push Oil Prices Higher, Gas Prices Follow

washington d.c. – Uncertainty over Russia’s intentions towards Ukraine is contributing to higher crude oil prices, which are nearing $90.00 a barrel. Russia is a member of OPEC+, and any sanctions based on its actions towards Ukraine could cause it to withhold crude oil from the global market.

Rising oil prices will lead to higher prices at the pump for drivers. The national average for a gallon of gasoline rose to $3.36, three cents more than a week ago.

“At the moment, only one person knows why Russia is threatening Ukraine, and that is Russian President Vladimir Putin,” said AAA spokesman Andrew Gross. “And tensions along the Ukrainian border have helped push crude oil prices up almost daily.”

According to new data from the Energy Information Administration (EIA), total national gasoline inventories increased by 1.3 million barrels to 247.9 million barrels last week. On the other hand, gasoline demand increased slightly, from 8.22 million bpd to 8.51 million bpd.

The increase still puts gas demand in a typical range for the winter driving season, which pre-COVID was 8.8 million bpd in mid-January 2020. Continued growth in crude oil prices has helped keep pump prices high. If oil prices continue to climb toward $90.00 a barrel, prices at the pump will likely follow.

The current national average of $3.36 is eight cents higher than a month ago and 94 cents higher than a year ago.

Quick Stats

Top 10 weekly increases nationwide: Florida (+12 cents), Indiana (+10 cents), Ohio (+9 cents), Kentucky (+8 cents), Georgia (+7 cents), South Carolina (+7 cents), Tennessee (+6 cents), Illinois (+6 cents), Alabama (+5 cents) and New York (+5 cents).

The 10 most expensive markets in the country: California ($4.64), Hawaii ($4.38), Washington ($3.95), Oregon ($3.92), Nevada ($3.80), Alaska ($3.75), Washington, DC ($3.58), Arizona ($3.56), New York ($3.54), and Pennsylvania ($3.53).

Oil market dynamics

At the close of Friday’s official trading session, WTI was up 21 cents to settle at $86.82. The cost of crude oil rose last week despite the EIA’s report that total domestic crude inventories rose by 2.4 million barrels to 416.2 million barrels.

The current crude inventory level is approximately 13% lower than in mid-January 2021, contributing to pressure on domestic crude prices. For this week, crude prices could continue to climb if the next weekly report from the EIA shows a decrease in total inventory.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also plot a route, find discounts, book a hotel, and access AAA roadside assistance. Learn more at AAA.com/mobile.

About AAA – The Auto Club Group

Groupe Auto Club (ACG) is the second largest AAA club in North America with over 14 million members in 14 US states, the province of Quebec and two US territories. ACG and its affiliates provide members with roadside assistance, insurance products, banking and financial services, travel deals and more.

ACG belongs to the national AAA federation with more than 62 million members in the United States and Canada. AAA’s mission is to protect and advance freedom of mobility and improve road safety.

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