War markets caused by war and uncertainty drive higher prices at the pump.
“It really bothers me … it’s a long distance from where I come from, from home to work,” Stephanie Humphrey said, adding that higher fuel costs are biting her budget.
“Yeah, it’s affecting my budget. I can’t go out to eat any more,” Humphrey said.
The pain of the pump may lead some to rethink vehicle options.
“Oh, this thing. It’s a gas monster,” says Noah Rodriguez, who loves his truck but no longer loves the cost of filling it, so he can sell it.
“If prices continue to rise, it will be easier to make a decision,” Rodriguez said.
The American Automobile Association says gas prices nationwide are hovering above $ 3.50 a liter for regulars, while other grades are also rising. That is the reaction of the oil markets. The price per barrel is now over $ 100. The AAA adds that the cost of oil is about 50% of what people normally pay at the pump.
“So you know, while you had that big jump in oil, you had a much smaller rise in pump prices. However, that will probably continue as long as our oil prices remain high,” said AAA spokesman Andrew Gross.
These oil prices will rise while there is geopolitical turmoil in Ukraine with the Russian attack.
“It’s okay. Oil doesn’t have much of a replacement. You know, we don’t have alternative transportation fuel. Oil is the only thing we’re pretty much into. You know, not just electric vehicles, you know, you’re getting around. Margins. strategic, ”says Jim Krane, a fellow at Baker Institute at Rice University.
Russia is a major player in the world’s oil markets, being the second largest exporter in the world if it receives sanctions for its military maneuvers, it will also affect world prices, as its main economy remains dependent on carbon production.
“The price of gasoline in the U.S. responds very quickly to geopolitical stress. So no matter where it happens, that’s going to happen in the U.S.,” Krane said.
In Houston, the energy capital of America, the rise in prices has a split effect, which could help major local oil companies, but hurt consumers ’purchasing power.
“I invest in oil and gas, to make that part good, we’ll wait and see, but as a consumer, pumping is a little hard,” said Houston investor Michael Moity.
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Oil prices surged above $100 per barrel Source link Oil prices surged above $100 per barrel