The average price of a gallon of gas in the US jumped to its highest level ever Tuesday as Russia's invasion of Ukraine continued to fuel an unprecedented surge in oil prices, with a looming ban on Russian oil imports only expected to push prices even deeper into uncharted territory, experts say.
One fuel analyst says Americans will be feeling the pain of the rise in prices for a long time.
According to the American Automobile Association, the average price of gasoline jumped 11 cents Tuesday to $4.17 per gallon, beating an all-time high of $4.11 in July 2008 during the Great Recession.
The price of gas has gone up more than 55 cents in the past week, with the highest prices in California, Nevada and Oregon.
Since Russia invaded Ukraine, the prices of oil benchmarks West Texas Intermediate andBrent Crude have soared more than 30% to $125 and $129.50 per barrel, respectively.
The latest spike in oil prices follows reports that President Joe Biden will ban Russian oil imports as soon as Tuesday morning in order to increase supply from one of the world's top oil- producing countries.
The cost of standing up for freedom is what Sen. Chris Coons (D-Del.) said Tuesday morning on CNN.
Patrick De Haan, head of petroleum analysis at fuel-savings app GasBuddy, said in a statement that the national average for gas prices will likely push closer to $4.50, with prices in California reaching as much as $6.
The cost is high as we lose a major global producer under the weight of deserving bipartisan sanctions for invading a country. Americans will be feeling the pain of the rise in prices for a long time.
A ban on Russian energy imports is expected to be announced by President Joe Biden at 10:45 a.m. On Tuesday. According to CNN and CBS News, the move will ban Russian coal, natural gas and oil imports. Goldman said in a note to clients that surging oil prices were the key inflation risk for the United States and that prices could rise to as much as $150 per barrel.
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 S&P 500 index fell 12% this year after rising 27% in 2021. Despite efforts to temper gains, oil prices have surged. The International Energy Agency agreed to release 60 million barrels of oil from strategic reserves in order 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.
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