However, the outcome of the conflict currently underway in Europe is uncertain.
According to Patrick De Haan, an analyst in oil and gas at GasBuddy, “It’s only going to get worse here for anybody filling up their tank up,” CBS MoneyWatch reported. “You might see motorists paying more tonight.”
According to De Haan, gas prices are already at an all-time high of seven years. They could rise by five to ten cents per gallon in the coming week and reach $3.75 within the next 15 to twenty days. He said that motorists will be affected by Russia’s situation, which combined with warmer temperatures and a recovering economic environment could see the national average rise to four dollars per gallon by April.
De Haan believes that there are more chances than 50-50 of the nation’s record $4.10 per gallon being broken or equaled in the coming weeks and months.
He said that a renewed U.S.-Iran nuclear agreement could “soften the blow” on gas prices and that the negotiations could result in an influx Iranian oil to global markets. Iran is a large producer of oil and natural gas. However, sanctions have curtailed Iran’s ability to export both.
AAA reported that the national average price for a gallon gasoline was $3.54 on Thursday, an increase of $3.33 from a month earlier. In comparison to $2.66 in the national average a year ago when travel demand was limited by the pandemic, it was only $2.66.
Andrew Gross, AAA’s public relations manager, stated that prices will rise. Will we see $4 per gallon? Gross stated that if you live in California you have been using it for a while. Gross said that if you are in Texas or Oklahoma, where gas is sold for $3.20 per gallon, there’s still a lot to be done.
Gross stressed that drivers shouldn’t panic as they “aren’t going to wake up tomorrow without being able to afford gasoline.” Gross stated that there is plenty of gasoline and plenty of oil. Prices will drop if this war is quickly resolved.
Since December, oil prices have risen more than 40%. This is due to speculation about a Russian invasion of Ukraine and the massing of troops at its borders.
Brent crude oil prices rose nearly 8% to $101.50 per barrel this week, marking the global benchmark’s first trip into triple digits in three years. It dropped to $99 on Thursday afternoon.
Biden acknowledged that the conflict could drive gasoline prices up, and U.S. companies were warned to be prepared for cyberattacks that might further complicate already stressed supply chains.
Carl Weinberg, Chief Economist at High Frequency Economics, stated that “it’s not the best time to take anything for granted”. It bothers me when you talk about oil price at $105 per barrel, but it doesn’t terrify. It’s a surviving event.
Weinberg stated that crude oil prices were almost constant at $100 per barrel from February 2011 to September 2014. However, the sun still “came out every day” during this period. “I think it has happened three times, when oil was above $100 per barrel. It’s always gone down.”
“As of yesterday there was hope that the incursion would be restricted to a small area. Chris Duncan, an analyst in equity research at Brandes, stated that this hope has quickly vanished. “We’ll soon see how much economic pain this west world is willing to endure.”
“There is hope that a line will develop, that this is an end to the escalation, and that we’ll place some sanctions. Duncan stated that if the line continues to move, there is a greater risk of significant fallout.”
