Russia’s invasion of Ukraine has agitated the oil market, with crude spiking briefly to over $100/barrel last week after Russia launched its military attack on Ukraine before settling back into the low-$90s to close out the week.
With the price of oil being the largest factor in determining the price at the pump, motorists in Kentucky and elsewhere saw gas prices continue to rise as well. Experts are predicting that the national average will top $4 a gallon as early as St. Patrick’s Day. The last time the national average exceeded the $4 mark was July 2008.
“Russia’s invasion and the escalating sanctions by the U.S. and its allies have given the global oil market cause for concern,” says Lori Weaver Hawkins, public affairs manager, AAA Blue Grass. “Like the U.S. stock market, the oil market responds poorly to volatility. It’s an explosive situation, and a grim reminder that events on the far side of the globe can have a ripple effect for American consumers.”
In the past week, the national average for a gallon of gas rose to $3.61. That’s 8 cents more than a week ago. Today’s national average is 25 cents more than a month ago and 89 cents higher than a year ago.
Kentucky’s gas price average is now at $3.25, up 2 cents from last week and climbing 23 cents in the past month. Today’s average in Kentucky is 69 cents higher than a year ago.
Checking state averages nearby, the average price for a gallon of unleaded in Ohio is at $3.33, West Virginia $3.35, Virginia $3.44, Tennessee $3.44, Indiana $3.53, Illinois $3.85 and Missouri $3.32.
The nation’s top 10 largest weekly increases: Michigan (+19 cents), South Carolina (+17 cents), Kansas (+16 cents), Missouri (+14 cents), Indiana (+16 cents), Illinois (+15 cents), Tennessee (+15 cents), Georgia (+13 cents), North Carolina (+12 cents) and Arizona (+11 cents).
The nation’s top 10 most expensive markets: California ($4.83), Hawaii ($4.55), Oregon ($4.03), Nevada ($4.03), Washington ($4.01), Alaska ($3.89), Illinois ($3.85), Arizona ($3.82), New York ($3.80) and Washington, D.C. ($3.78).
At the close of Friday’s formal trading session for oil markets, West Texas Intermediate decreased by $1.22 to settle at $91.59. Although crude prices saw some fluctuations on Friday, they surged after Russia launched its military invasion of Ukraine earlier in the week. As the conflict continues, the oil markets will likely respond by continuing to increase the price of crude oil to reflect more risk of disruption to tight global oil supplies this week. Additionally, EIA reported that total domestic crude stocks increased by 4.5 million barrels to a total of 416 million barrels. The current stock level is approximately 10 percent lower than mid-February 2021, contributing to pressure on domestic crude prices.
AAA Blue Grass