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Tags: gas prices | crude oil | russia | ukraine | biden administration | inflation

AAA: Record Gas Prices 'Unprecedented'

gas $7 a gallon
Gas prices over $6.00 and $7.00 a gallon are posted at a petrol station in Los Angeles, California on March 7, 2022. (Getty Images)

By    |   Friday, 20 May 2022 07:11 AM EDT

Gas prices, which reached a national average in the U.S. of $4.593 Friday, have been on the rise for the past 11 consecutive days, according to the American Automobile Association (AAA).

For gas prices to be at a record level for this long is "unprecedented," AAA says, Fox Business reports.

Drivers can expect gas prices to remain high throughout the summer due to the energy suppy crunch, the Ukraine war and rising demand, AAA spokesman Andrew Gross says.

Gas prices in all 50 U.S. states are over $4 a gallon, with Oklahoma offering the lowest, $4.03, and California having the highest price of $6.06.

"The price of oil has been stuck in their weird range of $100 a barrel to $110 a barrel," Gross says. "It meets resistance when it hits $110, and then it drops back down. But then it meets resistance to drop below $100 — and so, it's in this uncomfortably high area."

Brent crude oil futures for July fell to $111.45 a barrel Friday morning.

Oil peaked above $130 a barrel in March amid concerns about the supply of Russial oil and gas during the Ukraine war. Russia is the world's No. 2 exporter of oil.

"To put it in perspective," Gross says, "back in August, a barrel of oil was about $64 — so we're $40-plus more, and that's putting a lot of upward pressure because oil accounts for about 60% of the cost of what you pay at the pump. The more expensive the oil the more expensive the gasoline.

"The oil market is a lot like the stock market — and we've seen the stock market all over the place. It's volatile right now, very headline-driven. It doesn't take much to spook the oil market."

Gross points out that China is the world's biggest oil consumer and that due to the COVID lockdowns currently in place, its people are consuming less oil, which leaves more for the rest of the world.

The AAA spokesman says higher gas prices are making people think seriously about alternative forms of transportation to cars, such as bicycles and electric vehicles.

"It's a really interesting time right now," Gross says.

© 2024 Newsmax Finance. All rights reserved.


StreetTalk
Gas prices, which reached $4.593 Friday, have been on the rise for the past 11 consecutive days — an unprecedented level, according to the American Automobile Association (AAA).
gas prices, crude oil, russia, ukraine, biden administration, inflation
361
2022-11-20
Friday, 20 May 2022 07:11 AM
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