- November 21, 2024
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by: Mark Jenkins
Spokesman, AAA - The Auto Club Group
Florida gas prices increased 4 cents last week and more pump price hikes could be on the way. Crude oil prices surged in overnight trading, amid growing concerns that the Russia invasion of Ukraine could impact global crude supplies.
Russia is the third-largest oil producing country in the world and the crude oil market was already tight before this conflict began. Last week, oil prices spiked when Russia invaded Ukraine. However, prices quickly retreated to previous levels after President Biden announced sanctions that didn't specifically target Russian oil.
Oil prices quickly shot up Sunday night, Feb. 27, when international trading began. At the time of this writing, the U.S. price of oil was trading above $96 per barrel - an increase of nearly $5/b (5%) from Friday's closing price of $91.59. The energy market has had plenty of news to digest over the weekend, the most noteworthy may be the removal of Russian banks from SWIFT - making it more difficult for other countries to purchase Russian oil and gas.
"Unless oil prices reverse course, the pain at the pump is about to get even worse for Floridians," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "There has been a lot of speculation about oil prices, and the high seems like a moving target. If oil lands at $95 a barrel for a sustained period of time, drivers could expect to see a 15 cent jump at the pump. If U.S. oil reaches $100 a barrel, the total increase would be more like 25-30 cents per gallon."
Oil prices have increased around $20 per barrel in 2022. At $96 per barrel, the US price for oil is up nearly $50 (100%) since the beginning of 2021.
The Russian invasion isn't the only issue keeping upward pressure on pump prices. The busy spring and summer driving seasons are drawing near, which typically lead to strong fuel demand. Summer gasoline is moving into the market, which is more expensive to produce. Refineries are conducting seasonal maintenance, which can reduce normal gasoline production levels. And in addition to all those seasonal trends, there was an explosion at a Louisiana refinery last week.
Floridians are paying an average price of $3.52 per gallon. That's the most expensive daily average since July 2014. Florida gas prices have risen an average of 33 cents per gallon since the beginning of 2022, and $1.33 per gallon since the beginning of 2021.
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