Russia’s violent invasion of Ukraine has rocked the global oil market, with crude spiking above $100 per barrel, a price last seen in July 2014. The increase in the price of oil has led to higher pump prices in the U.S. with gas prices climbing in all 50 states.
For the week, the national average for regular jumps nine cents to $3.62 a gallon. The Oregon average rises a nickel to $4.03.
The Oregon average climbed above $4 a gallon last Thursday, Feb. 24, for the first time since October 2012. The national average is at its highest price since July 2014.
“Russia’s invasion of Ukraine and the responding escalating series of financial sanctions by the U.S. and its allies have given the global oil market the jitters with crude climbing above $100 per barrel. Like the U.S. stock market, the oil market responds poorly to volatility and the unknown. It’s a grim reminder that tragic events on the other side of the globe can impact people around the world, including American consumers,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
Russia is one of the top three oil producers in the world, along with the U.S. and Saudi Arabia. Russia produces about 10 million barrels a day. There are concerns that with the severe economic sanctions that the U.S. and other western nations have imposed on Russia, that it could retaliate by withholding oil from the global market. Europe, in particular, depends on oil from Russia. The world oil market is facing the same factors as many other industries – tight supplies and higher demand as economies around the world emerge from COVID-related economic slowdowns.
All 50 states and the District of Columbia have higher prices now than a week ago. Michigan (+21 cents) has the largest weekly increase. Idaho (+2 cents) has the smallest. Oregon (+5 cents) has the 37th-largest increase in the nation.
California ($4.84) and Hawaii ($4.57) continue to have the most expensive gas prices in the country. They are joined by Nevada, Oregon and Washington which are the other states in the nation with averages above $4 a gallon. while all 50 states and the District of Columbia have averages above $3 a gallon.
The cheapest gas in the nation is in Arkansas ($3.24) and Mississippi ($3.27). This week no states have averages below $3 a gallon, same as a week ago. For the 60th week in a row, no state has an average below $2 a gallon.
