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Uh Oh: Get Ready For Rising Gas Prices
Amid record-breaking inflation rates, the ongoing Russia-Ukraine situation might lead to Americans having to pay even more at the pump.
The uncertainty surrounding oil markets and the world’s third-largest oil producer, Russia, has already driven prices up.
As of Thursday, oil was at about $92 per barrel, but experts say those prices could skyrocket — greatly impacting gas prices.
Claudio Galimberti, senior vice president of analysis at Rystad Energy, said he wouldn’t be at all surprised if prices reach “$100 per barrel in the next few days.”
Galimberti said that if Russia does invade Ukraine, prices will go even higher, noting that Ukraine could strike back by sabotaging a key pipeline.
“The geopolitical risk premium will be even higher than it is right now,” he said.
Galimberti said these increases would eventually reach consumers at the pump, noting summer gas prices may be “well above” $4 per gallon.
Giovanni Staunovo, a wealth management commodities analyst, said that low inventories in oil and gas worldwide cause markets to be “very sensitive to any disruption (real or perceived).”
Some lawmakers say President Joe Biden’s policies make the country more dependent on foreign oil producers like Russia.
“The United States is one of the greatest producers of energy out there. And yet under the Biden administration, he has made us ever increasingly dependent upon Russia,” said Sen. Joni Ernst (R-IA), a member of the Senate Armed Services Committee.
“The United States has increased its imports from Russia to 202,000 barrels a day from Russia. That’s the highest it has been in 11 years. And again, we are one of the largest producers of energy right here in the United States, so why on earth are we ratcheting down on our energy independence and becoming increasingly reliant upon an autocratic thug, Vladimir Putin?”
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