Last Updated on February 23, 2022 8:28 am
The potential invasion of Ukraine by Russia has now become a driving factor concerning crude and is having a rippling effect on the oil market, which in turn is driving up the price of gasoline in the U.S.
“We have to take into consideration that after the United States and Saudi Arabia, Russia is one of the leading producers of oil globally,” said Tiffany Wright, spokesperson, AAA – The Auto Club Group in the Carolinas. “If they make a decision to withhold their oil from the global market, it would be reflected in even higher gas prices for motorists.”
In the Carolinas alone, gas has hiked by leaps and bounds. The North Carolina gas price average now sits at $3.42, having a 7-cent increase on the week. This is 31 cents more than a month ago and 94 cents more than a year ago. The South Carolina gas price average now sits at $3.30, having a 2-cent increase on the week. This is 28 cents more than a month ago and 88 cents more than a year ago.
Today’s national average for a gallon of gas is now $3.53, which is 21 cents more than a month ago and 90 cents more than a year ago.
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 1.3 million bbl last week. On the other hand, gasoline demand fell from 9.13 million b/d to 8.57 million b/d. Typically, a decrease in gas demand during the winter would put downward pressure on pump prices, but elevated crude prices continue to push pump prices higher.
Although crude prices declined at the end of last week due to increased market expectations that more oil could enter the global market if the U.S. and Iran complete a new nuclear agreement, and related sanctions are lifted, the tension between Russia and Ukraine contributed to rising oil prices earlier in the week. The current stock level is approximately 11 percent lower than mid-February 2021, contributing to pressure on domestic crude prices. For this week, crude prices could climb if EIA’s next report shows a decrease in total stocks.
For updated state and metro prices log on to https://gasprices.aaa.com/