Oil prices soared on Sunday as Democrat President Joe Biden’s administration considered imposing a ban on Russian oil, following Russia’s invasion of Ukraine late last month.
The price of Brent crude oil, the international standard, increased by 10% on Sunday evening, reaching $130 a barrel, The New York Times said. It cost roughly $65 a barrel in early December.
The national average price of gasoline increased to $4 per gallon over the weekend, the highest level since 2008, as prices continue to worsen under the Biden administration.
As of Sunday afternoon, AAA reported the national average price of a standard gallon of gas was $4.009, USA Today said.
That is an increase of 8 cents from Saturday and a 40-cent increase from last week. The United States reached the $4 national standard sooner than analysts anticipated.
BREAKING: Oil prices surge to 13-year high at the open of trading amid Russia-Ukraine war; stock futures drop around 1% https://t.co/9Jv1ArhFHR pic.twitter.com/Aa0iiKrElv
— CNBC Now (@CNBCnow) March 6, 2022
Gas prices are nearing an all-time high, according to Patrick De Haan, head of fuel studies at fuel-savings app, GasBuddy.
“We are currently experiencing a 7-day increase in gas prices of 43.7 cents per gallon,” he tweeted. “If we surpass 49.0c/gal today, we will have experienced the biggest seven-day average price increase in history.”
Analysis and Reports
According to GasBuddy, the premier fuel savings website that provides American drivers with the most methods to save money on gas, the average national cost of gas just exceeded $4 per gallon for the first period since 2008.
It is just 10 cents shy of the all-time high of $4.103 per gallon.
Prices have risen across the country, due to Russia’s assault on Ukraine; sanctions have harmed Russia’s capacity to export crude oil, resulting in an almost 41 cent increase in gas prices over the last seven days alone.
From about Friday, the weekly increase in gasoline prices was the second-highest in history, trailing only the 49 cents per gallon increase during the week of September 3, 2005.
15.8 cents per gallon was recorded yesterday as the second-highest daily increase in the country’s history. The mark is just a few cents from the 18.1 cent increase recorded 17 years ago after the event of Hurricane Katrina.
Diesel prices, on the other hand, rose to their highest daily increase in history: 22.2 cents a gallon, 6 cents greater than the previous record set in 2013.
GasBuddy anticipates gasoline prices will continue to rise in the coming days and may be just days away from reaching an all-time new peak. Prices are expected to continue rising throughout the summer.
Seasonal variables such as growing demand for gas, refinery maintenance, and the transition to summer-blend gas, combined with present geopolitical tensions, could push prices to $4.25 per gallon by Memorial Day.
*WTI OIL PRICES TOP $130 A BARREL FOR FIRST TIME SINCE 2008$CL_F #OOTT pic.twitter.com/sqp0wf4SbS
— Investing.com (@Investingcom) March 6, 2022
Elon Musk, the billionaire businessman, indicated late last week he favors boosting domestic oil and gas production to counter the US’ energy challenges caused by the Biden administration’s policies and the conflict in Europe.