US Gasoline Average Price Surpasses $4... Highest Since July 2008

[Asia Economy New York=Special Correspondent Joselgina] Due to the aftermath of Russia's invasion of Ukraine, the average gasoline price in the United States has surpassed $4 per gallon for the first time since July 2008.

Economic media CNBC reported on the 6th (local time), citing the American Automobile Association (AAA), that the nationwide average gasoline price reached $4.009 per gallon that day. This is the highest level since July 2008. Prices have rapidly increased following Russia's invasion of Ukraine, rising by $0.40 per gallon compared to a week ago and by $0.57 compared to a month ago.

In some regions, prices are even higher. In California, the price recorded was $5.288 per gallon.

This sharp price surge is due to disruptions in global crude oil supply caused by Russia's recent invasion of Ukraine. Russia is a major oil-producing country. Although most countries have not yet imposed sanctions on Russian crude oil and related products, the market has already seen movements to avoid purchasing Russian crude oil. According to JP Morgan estimates, 66% of Russian crude oil is struggling to find buyers.

There are also predictions that the U.S. gasoline price will soon exceed $4.5 per gallon.

Andy Lippo, president of Lippo Oil Associates, conveyed the atmosphere, saying, "As buyers reduce purchases of Russian refined products, Russian refineries are shutting down," and "Port workers are also refusing to unload ships carrying Russian crude oil and gas." He added, "With insurance premiums soaring, shipowners are canceling vessel bookings in Russia."

CNBC forecasted that the sharp rise in gasoline prices will drive up U.S. inflation to the highest level in 40 years, intensifying inflation fears across the entire economy.

This content was produced with the assistance of AI translation services.