U.S. gas prices ease back from record high

Americans are getting some relief from bomb prices, even as oil rises again above $ 100 a barrel.

Fuel costs rose to an all-time high last week as Ukraine The war raised concerns that the conflict could disrupt the supply of oil from Russia, which represents about 12% of the world crude oil market.

Gasoline prices averaged $ 4.27 per gallon on Friday, down from a high of $ 4.33 on March 11, according to AAA. That price last week broke the previous high of $ 4.10 in 2008.

Patrick De Haan, head of oil analysis at GasBuddy, expects gas prices to continue to fall. However, rising costs have not yet stopped motorists. He pointed out in a tweet that gas demand in the US this week through Thursday is up 1.4% and is at its highest point since mid-December.

Gas prices are directly related to global supply and demand. After sinking below $ 100 a barrel Earlier this week, both international and U.S. benchmarks rose to $ 107.49 and $ 104.55, respectively, according to Bloomberg. But that’s less than $ 130 last week amid hopes that recent talks between Russian and Ukrainian leaders could lead to a ceasefire.

Gas prices have been rising steadily for almost two years, driven by several factors. Most importantly, the demand for fuel between drivers and businesses recovered quickly afterwards COVID-19[feminine[feminine exploded in the United States in March 2020. One year after the crisis, the average price stood at $ 2.82, 45% more than its pandemic low.

By December 2021, gas had risen to $ 3.40 amid a wider explosion of inflation that also increased the cost of food, rent, clothing and many other goods.

Cuts in oil production in OPEC countries also reduced supplies. And gas prices rose further this year after Russia’s attack on Ukraine, which boosted the US last week ban Russian oil and gas imports.

The United States now produces an average of 11.6 million barrels of oil a day, up from 11.3 million barrels by 2020, according to the Energy Information Administration. The US imports less than 10% of its oil and gas from Russia.

Congressional lawmakers have proposed ways to cut gas prices, including the temporary waiver of a federal 18-cent per gallon tax. In the fall, President Biden ordered the release of 50 million barrels of oil Strategic Oil Reserve of the country. An increasing number of states are also considering whether they can do so temporarily waives local gas taxes.

Although gas prices have skyrocketed, the previous record of 2008 is still higher if inflation is taken into account, at around $ 5.24 today.

—Associated Press contributed to this report.

In:
• gas prices