Article Image

IPFS News Link • Oil

Rising gas prices to hit $7 a gallon if crude oil cost spikes...

•, by: Roy Green

 Even with no lockdowns, Americans may be inclined to travel less this year.

That's because of rising gas prices brought about by a spike in the cost of crude oil, an unsteady supply chain and the escalating tension between Russia and Ukraine.

An energy expert already predicted gas prices could soar to a crippling $7 a gallon, which would be double the prevailing $3.5 a gallon average this year in the United States.

"My guess is that you are going to see $5 a gallon at any triple-digit [oil price] … as soon as you get to $100. And you might get to $6.50 or $7," Dan Dicker, founder of Energy Word, told Yahoo Finance.

Crude oil currently trades at $91 per barrel, driving gasoline prices in the U.S. to an average of $3.53 per gallon, up by 6.46 percent in January and 37 percent from the same month last year, according to data from the American Automotive Association (AAA).

And there's no sign the speeding price hikes will slow down, brake or stop.

"Between the tight supply of oil worldwide and an increase in demand, that's a recipe for higher prices at the pump," said Tiffany Wright, spokesperson for the AAA – The Auto Club Group in the Carolinas. "Unfortunately for motorists it doesn't appear that this trend will change anytime soon."