The average price of a gallon of gas in the US jumped to its highest level in nearly a decade on Friday, as Russia's invasion of Ukraine caused a rapid surge in oil prices and analysts warned people to expect even higher prices in the weeks to come.
The average price of gasoline jumped 11 cents on Friday to nearly $3.84 per gallon, marking the highest price since March 2012 according toAAA.
The average price of gasoline jumped 11 cents Friday to nearly $3.84 per gallon, the highest level since March 2012 and the biggest one-day spike on record.
The price of gas has risen nearly 27 cents in the past week, with the highest prices in California, Oregon and Washington, where people are paying an average of $5.07, $4.28 and $4.22, respectively.
The overnight spike comes after Russian troops attacked the Zaporizhzhia Nuclear Power Plant, the second- largest nuclear plant in Europe, heightening concerns that new sanctions could curb oil production in Russia.
After the attack, West Texas Intermediate jumped 5% to a nearly eight-year high of $113 per barrel. On Friday.
Patrick De Haan, head of petroleum analysis at gas-savings app GasBuddy, told USA Today that the invasion of Ukraine by Russia should push prices up to $4 a gallon in the coming weeks.
In a note to clients Friday evening, Goldman Sachs called surging oil prices the key inflation risk for the United States and forecasted prices could rise to as much as $150 per barrel, which could keep average consumer prices rising at the fastest rate.
During the Great Recession, the average price of gas was $4 per gallon.
The global oil market has become jittery because of Russia's invasion and the response by the U.S. and its allies, according to Andrew Gross. It's an important situation, and a reminder that events on the far side of the globe can affect American consumers.
The surge in inflation was caused by rising energy prices, and the stock market has struggled in recent months as Federal Reserve officials work to combat the surge. The benchmark S&P 500 index is down 9% this year after rising 27% in 2021. Despite efforts to curb the price surge, oil prices have surged over the past week. The International Energy Agency agreed to release 60 million barrels of oil from strategic reserves to help calm energy markets during the Russia-Ukraine conflict. The amount of normal Russia exports is only a couple weeks worth, according to a Raymond James analyst.
Will attempts to self-shack Russia be enough to bring down Putin? (Forbes)
The price of oil has hit a seven-year high.
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