A New Report REVEALS What The Ukraine Invasion Will Do To You At The Pump!

This sudden Gasoline price hike is now a worldwide consumers’ problem as the Russian invasion of Ukraine continues to get worse.

The ongoing war and the sanctions on Russia are likely to disrupt the transportation and production of many industrial inputs, leading to another round of shortages across the world.

Oil prices surged past $100 a barrel for the first time since 2014 on Thursday after Russian President Vladimir Putin ordered a full-scale military assault on Ukraine, prompting widespread international condemnation. A larger price surge will push gas prices above the $4-per-gallon mark into near-record territory over the course of this year.

On Thursday, Patrick DeHaan, GasBuddy’s Chief Petroleum Analyst said in a press conference that the conflict in Ukraine is driving prices up and Gas will increase by 5 to 10 cents in the next 1-2 weeks.

West Texas Intermediate crude oil, which sets the U.S. price standard, jumped to $100.39 per barrel, while Brent crude, the international standard, rose to $105.60 per barrel early Thursday. Both prices receded throughout the rest of the day, but DeHaan noted that prices finished the day with an increase of about $2 a barrel.

The increase in oil price corresponded to an increase in the wholesale price of gasoline between 8 and 10 cents per gallon. The price hike for gasoline terminals and tanker trucks also meant that gas stations would have to plan on raising prices immediately.

DeHaan said in a statement:

“The increase will likely play out over the course of the next several days as stations are filling up with the pricier fuel. They likely will slowly raise their prices over the next 1-2 weeks.” Most states will see prices go up by anywhere from 5 to 10 cents a gallon over the next 1 to 2 weeks,” he added, noting that increases would continue if the conflict continues to drag out.

The Daily Wire reported that Russia was the second-largest oil producer in the world in 2021, producing 10.1 million barrels of oil per day. Russian imports of oil account for about 7% of U.S. oil imports overall.

DeHaan continued:

“The primary risk in this situation is Russia’s oil flow. The primary concern here is that Russia holds a significant portion of global oil production in its hands. Should the situation escalate, it’s not impossible that Russia may use oil as a weapon,” DeHaan said, adding that “Russia already used natural gas as a weapon” in talks with Germany over the Nord Stream 2 pipeline.

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DeHaan went on to say that consumers could be paying $4 a gallon by April or May, saying that other factors besides the Russia-Ukraine conflict will drive up prices, including increased demand from warmer weather and the introduction of summer blend gasoline, which is more costly due to EPA regulations. These price hikes could begin in the next 4-6 weeks, DeHaan said. The price of gas could also approach or even break record highs. The previous record high of $4.10 could be broken as soon as May or June, DeHaan warned. He did however, allay fears of “apocalyptic” price surges to $5 or $6 a gallon, except for places like California with higher gas taxes. Even then, California would not breach the high end of those estimates unless the Ukraine situation escalated dramatically, he said.

Finally, DeHaan pointed out that rising gas prices would affect all sectors of the economy. “Gasoline prices are going up, diesel prices will go up, jet fuel prices will go up, and that means logistics, transporting goods, all of those prices will go up,” he said. “Airline tickets could go up. The price of anything delivered via truck, goods to the grocery store will see an increase. And services that rely on gasoline, whether that be things like Uber and Lyft and Instacart, you may see fuel surcharges tacked on those services in the coming days and weeks as well, as gas prices are likely to stay high.”

Even sanctions not specifically aimed at the energy market could indirectly crimp exports of oil and natural gas or prompt Moscow to retaliate by limiting supply.

Financial analysts say such wars and other such scary geopolitical events tend to have only a temporary effect on markets, perhaps lasting weeks or months. But in the moment, fear is rising, AP News noted.

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Source: DailyWire