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Brace for more pain at the pump: Gas tops $6 at one Los Angeles station

Gas prices are at their highest level in almost eight years, and experts warn they could rise even further than Russia launches a full-scale invasion of Ukraine.

At one Los Angeles Chevron Station, the price of regular lead free, was quoted at a striking $ 6,219 on Wednesday, when it was spotted by an AFP photojournalist.

The national average price of regular gasoline hit $ 3.53 on Tuesday, up 21 cents from a month ago and 90 cents more than a year ago, according to the AAA Gas Price Index.

California leads the nation with gas at an eye-watering $ 4.74 per gallon, and the average cost in Los Angeles county is $ 4,796.

Experts say Russia’s troop movements in eastern Ukraine have a ripple effect on the oil market, which in turn drives up the price of gasoline in the US.

At one Chevron station in Los Angeles, the price of regular lead-free Wednesday was quoted at a striking $ 6,219 on Wednesday.

The national average price of regular gasoline hit $ 3.53 on Tuesday, up 21 cents from a month ago and 90 cents more than a year ago

The national average price of regular gasoline hit $ 3.53 on Tuesday, up 21 cents from a month ago and 90 cents more than a year ago

A full-scale Russian attack would be met with heavy financial sanctions led by the United States and its allies.

Russia could take revenge by holding back oil from the world market, which is already tight and struggling to keep up with the demand as the world economy recovers from the COVID-19 pandemic.

“Russia is one of the leading oil producers worldwide, behind only the United States and Saudi Arabia,” AAA spokesman Andrew Gross said in a statement.

“And if they choose to keep their oil off the world market, such a move would eventually be reflected in higher gas prices for American drivers.”

Contrary to rising inflation and gas prices, the Biden administration is considering proposals to suspend the federal gasoline tax, which would save drivers 18.4 cents per gallon for standard gas.

Oil prices have climbed to $ 100 per barrel in the midst of the Ukraine crisis, reaching levels not seen since 2014.

On Wednesday, U.S. West Texas Intermediate (WTI) crude futures rose $ 1.58, or 1.7 percent, to $ 93.47 per barrel, after reaching $ 96 on Tuesday.

U.S. crude oil prices rose 1.8 percent and energy shares rose

U.S. crude oil prices rose 1.8 percent and energy shares rose

A man pumps gas into his car at a gas station in Montebello, California on February 23, 2022, because gas prices at some stations are above $ 6 dollars per gallon

A man pumps gas into his car at a gas station in Montebello, California on February 23, 2022, because gas prices at some stations are above $ 6 dollars per gallon

The global benchmark brent crude was $ 1.48, or 1.5 percent, up to $ 98.32 per barrel, after reaching $ 99.50 on Tuesday, the highest since September 2014.

The Ukraine crisis is also affecting equities. After opening Wednesday higher for the first time in five trading sessions, the major U.S. stock indices all posted early gains and swung into negative territory.

The benchmark S&P 500 index continues to fall after falling in the ‘correction’ area, or 10 percent below its previous high.

The last correction for the index was in the spring of 2020, as the pandemic boosted the world economy.

That correction increased in a bear market – a decline of 20 percent or more – as the S&P 500 fell nearly 34 percent in about a month.

Wall Street has been closely monitoring developments in Ukraine, where Russia has gathered troops for a possible invasion.

Ukraine on Wednesday declared a state of emergency and told its citizens in Russia to flee, while Moscow began evacuating its Kyiv embassy in the latest ominous signs for Ukrainians fearing a full-scale Russian military attack.

The benchmark S&P 500 index continues to fall after falling in the 'correction' area, or 10 percent below its previous high

The benchmark S&P 500 index continues to fall after falling in the ‘correction’ area, or 10 percent below its previous high

Oil prices are rising due to fears that sanctions imposed on Russia by Western nations, after sending troops to two missing regions in eastern Ukraine, could hit energy supplies.

Sanctions imposed by the United States, the European Union, Britain, Australia, Canada and Japan were aimed at Russian banks and elites, while Germany stopped the certification of a gas pipeline from Russia.

But the United States has made it clear that sanctions have been agreed and that those imposed will not focus on oil and gas flows.

However, analysts expect that oil prices will continue to support Russia’s Ukraine ‘crisis, with some Western countries promising to impose more sanctions if Russia launches a full invasion.

Gas prices are on display Tuesday in the Venice district of Los Angeles

Gas prices are on display Tuesday in the Venice district of Los Angeles

“The prospect of more conflict in Ukraine should protect the geopolitical risk premium,” said Stephen Brennock at broker PVM Oil.

“There is a risk that Russia will retaliate against the sanctions by reducing supplies on its own initiative,” said Commerzbank analyst Carsten Fritsch.

The potential return of more Iranian crude to the market weighs on prices as Tehran and world powers come closer to repeating a nuclear deal.

“Nuclear talks in Vienna reach a sensitive and important point,” Iran’s Foreign Minister Hossein Amirabdollahian said on Wednesday.

However, analysts say there is little chance that Iranian crude will return to the market in the near future to reduce the current supply density.

“If an agreement is reached between the United States and Iran, it will reduce some of the pressure, but not enough to stop oil prices from reaching three figures,” said Pratibha Thaker of the Economist Intelligence Unit.

Brace for more pain at the pump: Gas tops $6 at one Los Angeles station Source link Brace for more pain at the pump: Gas tops $6 at one Los Angeles station

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