October 4, 2023

Taylor Daily Press

Complete News World

How far can they go?

How far can they go?

The conflict in Ukraine revolves around a gas pump in the United States.


Gas prices in Russia The US gas prices continue to rise a day later Invasion of Ukraine† National average, Thursday morning, $ 3.54 per gallon, According to AAACompared to $ 2.65 a year ago.

On Friday afternoon, it reached $ 3.57.

Tom Closa, energy analyst at the Oil Price Information Service, said the national average could easily cross $ 4 a gallon in mid-March. He told CNN Thursday.

In CaliforniaAs of Friday morning, prices were already averaging $ 4.79 a gallon, 2 cents higher than Thursday. They crossed the $ 4 mark in Oregon and Hawaii.

Earlier on Thursday, crude oil – refined to produce petrol – rose to $ 105.79 a barrel, up from $ 105 for the first time since 2014. On Friday afternoon, the oil cooled slightly to $ 90.86 a barrel. But Kloza said a sharp rise in wholesale gas prices would affect consumers in a few days.

Here is what you need to know about how the crisis in Ukraine has affected gas prices, including options for offsetting rising costs.

For more information, find out what Russia’s invasion was That is, for the American economy Learn more about it Cyber ​​attacks against Ukraine And this Threats to other countries

Where is the gas price going?

Brian Milne, Energy Editor, DTN Materials and Technology Forecasting, MarketWatch said: If conflicts continue in Europe at $ 100 a barrel, the average pump price over the next two weeks could easily rise to $ 4 a gallon across the country.

Troy Vincent, DTN’s chief market analyst, told CNET: “In the worst case scenario, crude oil could be $ 130 a barrel or more as full sanctions on Russian gas and oil are cut off from world markets.” ⁇

Westend61 / Getty Images

In July 2008A strike by Brazilian oil workers and threats to supply oil from Nigeria and Iran have pushed up crude oil prices to $ 147.27, while the average gas station price has risen to $ 4.10.

Vincent said that if crude oil prices reach $ 150 a barrel by 2022, $ 6.50 or even $ 7 a gallon cannot be ruled out.

“However, at that time, it will lead to a global recession,” he added. “People will limit their activities to essentials.”

Does the US get oil from Russia?

Oil fields

The United States imports more crude than it produces, and Russia is the third-largest exporter after Canada and Mexico.

Frederick J. via Getty Images. Brown / AFP

Russia, one of the world’s largest producers of crude oil and natural gas, supplies about 10% of global supply and Nearly 40% for the EU

At the same time, the United States is the largest producer of crude oil and natural gas We are the biggest consumersIt produces more than 18.6 million barrels a day and uses more than 20.5 million barrels.

Last year, the United States imported 8.5 million barrels of crude oil per day to make up for the shortfall. NovemberAbout 595,000 barrels a day, or about 7%, came from Russia – making it our third largest exporter after Canada and Mexico.

Sanctions against Moscow could reduce the availability of Russian crude in the United States and lead to higher prices for petrol and petroleum products.

Other factors affecting gas prices

Although the crisis in Ukraine has immediate implications for oil and gas, Vincent says this is not the only factor.

“We have had supply and demand fluctuations for some time – this conflict will continue whether it ends or not,” he said.

In any industry, the epidemic has resulted in staff problems at treatment plants. And crashes have occurred – including a fire this week Marathon Petroleum Factory In Louisiana. Cold winters in North America have increased the demand for home heating oil.

“Demand for diesel has been higher for several months than before the Govt,” Vincent added. “The high e-commerce sales in the United States mean that all of those exports have to be delivered to your home.”

Vincent advises against gas hoarding or other drastic measures, but says consumers need to understand that higher energy prices make a significant contribution to inflation and will not go away in no time.

“When crude oil prices rise, pump prices turn upside down very quickly,” he said. “But even if crude oil declines, gas prices will continue to rise in the long run.”

What can the US do to offset rising gas prices?

President Joe Biden said Tuesday that he was developing a strategy to “reduce gas prices” in the face of the Russian invasion.

Joe Biden

President Joe Biden releases barrels from strategic petroleum reserves.

Brendan Smilofsky / AFP via Getty Images

In a televised speech on Thursday, the president said he would release the barrels from the strategic petroleum reserve, a deep underground storage facility on the Gulf Coast. Estimated at 600 million gallons From crude.

“I know it’s hard, and Americans are really hurting,” Biden said. “I will do everything I can to alleviate the pain that the American people feel when refueling.”

On Thursday, Biden announced a series: Strict sanctions against Russia With the aim of ending the test, it will help bring oil and gas prices back to normal.

See also  Focus on the American Job Report on Tomrock