Americans are warned to budget for $5-A-GALLON gas as oil prices surge

DAILY MAIL:

Americans can expect to see gas prices to rise to $5 a gallon in the coming weeks, as the cost of oil continues to rise in the days following Russia’s invasion of Ukraine, experts say – and some parts of California already are.

‘We’re getting closer to seeing our first ever major city gas price average reach $5/gal,’ Patrick De Haan, head of petroleum analysis at GasBuddy, tweeted Monday, as the national average soared to $3.61, which has since spiked to $3.72 as of Thursday.

‘It will happen in the next couple weeks,’ the oil analyst asserted, listing cities hit the hardest by surging oil prices, such as San Francisco, which on Thursday saw its average surpass the $5 mark to hit $5.05 a gallon, and Los Angeles, which reached a similar $5.01. 

The national average as of Thursday is $3.72 a gallon, up 37 cents from February and about a dollar from a year ago, AAA data shows. The increase for the year can also be attributed to inflation and supply chain issues, which were then exacerbated by the Russian invasion.

The current spike is unlikely to ease soon, says De Haan – whose department analyzes fuel prices for more than 150,000 gas stations in the U.S., Canada and Australia – as the conflict between Russia, one of the world’s major oil producers, and Ukraine intensifies. 

‘For those who think this #gasprice spike is somehow unique to only the United States and that the prez is the one somehow deciding to raise prices, it is a *global* price spike because of loss of oil from a major producer,’ De Haan tweeted Thursday.

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