CINCINNATI, — Russia’s invasion of Ukraine has roiled the oil market, with crude spiking briefly to over $100/bbl before settling back into the mid-’90s.
Given that the price of oil is the largest determinant of the price at the pump, gas prices continue to increase as well, with AAA experts projecting that the national average will top $4/gallon by St. Patrick’s Day. 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 Kara Hitchens, AAA spokesperson. “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 Ohio, the statewide average is $3.33, one cent more than a week ago, 20 cents more than a month ago and 63 cents above where it was a year ago on this date.
Quick stats
The nation’s top 10 largest weekly increases: Michigan (+18 cents), South Carolina (+16 cents), Kansas (+15 cents), Missouri (+15 cents), Indiana (+14 cents), Illinois (+14 cents), Tennessee (+14 cents), Georgia (+13 cents), North Carolina (+12 cents) and Arizona (+10 cents).
The nation’s top 10 most expensive markets: California ($4.82), Hawaii ($4.54), Oregon ($4.02), Nevada ($4.02), Washington ($4.00), Alaska ($3.88), Illinois ($3.85), Arizona ($3.81), New York ($3.80) and Washington, D.C. ($3.77).
Market dynamics
At the close of Friday’s formal trading session, WTI decreased by $1.22 cents 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.
Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad, and Android. The app can also map a route, find discounts, book a hotel, and access AAA roadside assistance. Learn more at AAA.com/mobile.
