According to AAA, as of this morning the the New Jersey average gasoline price is at 4.095 breaking the previously recorded high in 2008 of $3.99.
Russia’s violent invasion of Ukraine has roiled the oil market, with crude spiking briefly to over $100/bbl before settling back into the mid-$90s. The increase in the global price of oil has led to higher pump prices in the U.S.
“Russia’s invasion and the responding escalating series of financial sanctions by the U.S. and its allies have given the global oil market the jitters,” said Andrew Gross, AAA spokesperson. “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.”
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 600,000 bbl to 246.5 million bbl last week. Meanwhile, gasoline demand rose slightly from 8.57 million b/d to 8.66 million b/d. The increase in gas demand and a reduction in total supply contribute to rising pump prices. But increasing oil prices play the lead role in pushing gas prices higher. Pump prices will likely continue to rise as crude prices continue to climb.