Ever since the Russian Federation launched an invasion of Ukraine, the global energy market has become unstable, resulting in a 25% increase in gas prices on pumps around the US. Currently, gas is $4.37 a gallon, which is a recent record high.
Despite the Government releasing oil from emergency reserves in April, the gas price went up by 17 cents during the last week. In April, the temporary relief proved to be a short break ahead of a gas spike and newly rising recession fears.
Market experts expect the prices to keep rising. It’s forecasted that in the next ten days, the prices will be $4.50 a gallon in the next ten days.
While many believe this may be happening due to China’s recent lockdowns, this isn’t the case. Gas prices are closely tied to oil prices, and the oil market has been experiencing stock ups and downs.
On Monday, US oil prices went down by 6% which is the lowest they’ve been in months. A barrel was $103.09, and it’s expected that prices as low as this will provide some form of reduced pressure on gas pumps.