Oil prices have risen close to $100 a barrel as tensions between Russia and Ukraine escalated, a rise that already appears to be affecting fuel prices across the US.
The price of Brent crude, the international oil benchmark, rose 3.5%, to about $99 a barrel on Tuesday and West Texas Intermediate was trading at nearly $95.50 a barrel, up about 5%.
The Biden administration has already warned that concerns over armed conflict in Ukraine will affect US consumers, who are already suffering from soaring inflation.
Last week Joe Biden warned his decision to impose sanctions on Russia would have consequences. “I will not pretend this will be painless,” said Biden.
Pres. Biden says Russian invasion of Ukraine could impact energy prices.
— ABC News Politics (@ABCPolitics) February 15, 2022
“I will not pretend this will be painless…We’re preparing to deploy all the tools and authority at our disposal to provide relief at the gas pump.” https://t.co/D9IPWPkiUh pic.twitter.com/OzJrnsBQx4
His comments were echoed by vice-president Kamala Harris on Sunday during a diplomatic visit to the Munich Security Conference in Germany. “When America stands for principles, and all of the things that we hold dear, it requires sometimes for us to put ourselves out there in a way that maybe we will incur some cost. In this situation, that may relate to energy costs,” she said.
Some areas of the US are already experiencing sharp rises in prices. Gas prices across California hit a record average high of $4.75 a gallon on Monday, well above the nationwide average of $3.53, which is up roughly a dollar from a year ago.
While there are a number of factors at play in California’s rising fuel prices, including local taxes, geography and a shift in oil production, AAA spokesperson Doug Shupe told Los Angeles’ KTLA: “The number one reason why we’re seeing these pump prices is the geopolitical tension between Russia and Ukraine. That’s putting upward pressure on the crude oil price. Also, as many parts of the country start warming up, the demand for fuel is increasing as people start to head out and take those road trips.”
