US gasoline prices at highest in almost 14 years

ANKARA

US gasoline prices climbed to their highest in almost 14 years Tuesday, according to data compiled by Anadolu Agency.

The national average stood at $4.173 a gallon for regular gasoline, its highest since July 2008, data by American Automobile Association (AAA).

The highest price was in the state of California at $5.444.

That was followed by Hawaii at $4.718 and Nevada coming in at $4.674.

The only state below the $4 mark was West Virginia at $2.986.

US President Joe Biden is expected to announce a ban on Russian energy exports later Tuesday, which would come without similar action from Washington’s European allies.

Secretary of State Antony Blinken said Sunday that Washington and its allies were in active talks to ban Russian crude imports.

Rising prices have become a major issue for American consumers.

Although the Biden administration has repeatedly said it is fighting high gasoline prices, releasing crude oil from strategic petroleum reserves does not seem to have helped.

Crude prices have been on the rise since the economy largely opened up after being shut down by the coronavirus pandemic, pushing up global oil demand. But supply has been lagging.

International oil benchmark Brent crude climbed above $132 per barrel mark Tuesday, its highest in more than a decade. American benchmark West Texas Intermediate jumped to $129. But gained more than 7%.

The US Commerce Department took the first step Friday on Russian oil restrictions when it announced measures targeting Russia’s oil refining sector with export controls.

One measure builds on existing US restrictions put in place on the Russian deepwater oil and gas exploration and extraction industries in 2014 when Russia annexed Crimea. It imposes restrictions on a wide variety of items necessary for refining oil.

Russia is one of the three major oil-producing and exporting countries in the world, along with the US and Saudi Arabia.

It is also a member of OPEC+, which includes Saudi-led OPEC and its allies.

OPEC+ met Wednesday and agreed to stick to their plan of ramping up production by 400,000 barrels per day through April.

A prolonged war in Ukraine, or its spillover to other regions, in addition to sanctions on the Russian oil sector and exports, could push crude and gasoline prices even higher.