'A Perfect Storm': Average U.S. Gas Price Reaches New High and Continues to ClimbThe new U.S. gas price average is about $1 higher than it was a year ago.
ByAmanda Breen•
FollowingRussia's invasion of Ukraine last week and subsequent concerns about the impact stifled oil production would have onoil and gas prices, the average U.S. gas price has skyrocketed to new heights, hitting $3.64,Fox Businessreports. Itmarks the ninth consecutive weekthe U.S.'s average gas price has increased.
Russia is the third-largest oil producer and second-largest exporter. The U.S. hasn't yet formally instituted direct sanctions against oil and gas imports from Russia, butPresident Joe Bidenhasacknowledgedpotential supply-chain disruptions, and on Saturday, the U.S., European Union and other Western countriesannounced they would sever tiesbetween a "certain number of Russian banks" and the SWIFT international payments system and place restrictions on Russia's Central Bank. Without access to the world's most important financial messaging system, Russia will be ill-equipped to soften the blow of other sanctions.
Related:Commodity ETFs at 52-Week High Mark Amid Russia-Ukraine Crisis
The new sanctionsdrove oil prices upon Monday, with Brent Crude reaching $105.07 a barrel and U.S. West Texas Intermediate hitting $99.10 a barrel in early trade. As of 10:15 a.m. EST,Brent Crudewas trading at $97.69, up nearly 4%.
According to Patrick De Haan, head of petroleum analysis at GasBuddy, the potential for diminished supply and increased demand has "pushed up the national average price of gasoline considerably in the last week, and the situation could worsen at any time, keeping gas prices elevated for the foreseeable future ... we're also entering the time of year that seasonality pushes gasoline prices up by anywhere from 25 to 75 cents by Memorial Day. It's simply looking like a perfect storm for motorists at the pump, with little to no relief anytime soon."
Related:Oil Stocks to Watch as Russia-Ukraine Conflict Escalates
The new U.S. gas price average isabout $1 higherthan it was a year ago, with prices varying significantly by location. People in theSan Francisco Bay Areapay the highest average price for regular-grade gas at $4.86 per gallon, while those inHoustonpay the lowest average at $3.14 per gallon.
