The average price for a gallon of unleaded gas in the U.S. reached yet another record high on Tuesday—$4.92—after shooting up nearly 30 cents in one week. As the chart below shows, that’s the biggest jump for any 7-day period since mid-March, when Russia’s invasion of Ukraine first pushed prices to a new record high. Experts don’t see things easing anytime soon. Patrick De Haan, head of petroleum analysis for GasBuddy, is now predicting that prices will hit the “psychologically critical” $5 mark this week rather than next. Last month, JPMorgan Chase predicted $6.20 by August. What’s causing the steep climb? It’s a mix of high prices for the crude oil that gas is made from, supply shortages, a lack of production capacity, and increasing summer demand. The prospect of more sanctions against Russian oil has helped keep oil prices above $110 a barrel, well over $20 more than what they were before the war broke out. Meanwhile, analysts say U.S. refinery capacity to process oil into gasoline still lags what it was before the pandemic. Have a question, comment, or story to share? You can reach Terry at tlane@thebalance.com. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
