Could gas prices be any higher? According to AAA, the U.S. hasn’t seen prices this high since 2014, but experts say it could get even worse. The national average on Wednesday is $3.47 per gallon, exactly $1 higher than it was one year ago. That means a driver with a 15-gallon tank is spending $15 more every time she fills up.
It’s tempting and common to blame politicians in power for pump pain. People are putting stickers on gas pumps across the country featuring President Joe Biden pointing to the price with the words, “I did that.” Former President George W. Bush faced similar pressure when prices surged past $4 per gallon in 2008. To date, the highest recorded national average came in at $4.11 per gallon on July 17, 2008, according to AAA.
Despite presidential pressure, in many cases, gas prices have a lot more to do with what’s happening overseas. In this case, tension between Russia and Ukraine is part of what’s driving gas prices so high.
A barrel of crude is currently trading over $90 due to concerns Russia could withhold supply in the face of sanctions. If Russia moves to invade Ukraine, global strategist David Roche told CNBC he thinks oil prices could go as high as $120 a barrel.
On the flip side, German asset manager DWS predicted in a note that if tensions there ease, oil could drop to around $70 a barrel, which would represent a 22% decline.
