Russia-ukraine conflict drives gas prices higher
OKLAHOMA -- As the conflict between Russia and Ukraine continues, the price of crude oil continues to soar, leading to higher pump prices in the U.S., and AAA expects the upward current trend to continue. Some states have reached record breaking pump prices.
The national average for a gallon of gas is $4.06, a staggering 45 cents more than a week ago, 62 cents more than a month ago and $1.30 more than a year ago. The national average has not been this high since July 2008.
Today, Oklahomans are paying the second lowest average price for gas in the nation, $3.65 a gallon. Missouri is the only state with less expensive gas. Still, this week’s average in Oklahoma is 27 cents more than a week ago and 54 cents more than a month ago.
Last week, the International Energy Agency (IEA) announced a coordinated release of crude oil from its 31 member countries’ strategic reserves, including the U.S., Germany, Canada, South Korea, and Mexico, to help counter the impact of rising crude prices. On Friday, IEA said member states committed to releasing a total of 61.7 million barrels from their strategic reserves to reassure markets roiled by the fallout from Russia's invasion of Ukraine. This amount—half of which is expected to come from the U.s.—is the largest coordinated release since IEA was founded in 1974.
Despite this announcement, the impact on pricing has been limited given that the amount of oil planned for release is small in comparison to the amount that flows daily from Russia to other countries around the globe. According to IEA, Russia exports approximately 5 million barrels per day of crude oil, representing about 12% of its global trade.
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 500,000 barrels to 246 million barrels last week. Meanwhile, gasoline demand rose slightly from 8.66 million to 8.74 million barrels per day. The increase in gas demand and a reduction in total supply contribute to rising pump prices but, increasing oil prices play the leading role in pushing gas prices higher.