Gas prices starting to stabilize as Ukraine war continues
State and national as prices are beginning to stabilize after reaching near record highs due to the Russian invasion of Ukraine, according to AAA Oregon/Idaho.
Last week, the national average for regular dipped to $4.18 a gallon, a decrease of eight cents from the week before. The Oregon average decreased a penny to $4.69 from the week before for a gallon of regular.
The average price for a gallon of regular in early March in Oregon was $4.28 per gallon. At this time a year ago, the average price was $3.19 per gallon.
"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," Marie Dodds, AAA public affairs director, said. "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.".
Russia is one of the top three oil producers in the world, along with the U.S. and Saudi Arabia. The former Soviet Union produces about 10 million barrels a day.
There are concerns that with the severe economic sanctions that the United States 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.
The increase in the price of oil has led to higher pump prices in the U.S. with the average price for regular at $4.18 on April 4, a decline from the week before.
California ($5.85), Nevada ($5.18) and Hawaii ($5.21) continue to have the most expensive gas prices in the country. They are joined by Alaska, Arizona, Idaho, Illinois, Utah and Washington as states or districts in the nation with averages above $4.40 a gallon.
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