RI Gas Prices Jump 27 Cents in First Week of War

RI Gas Prices Jump 27 Cents in First Week of War

Gas and oil prices continue to spike in Rhode Island. The increases are tied to the U.S. and Israel's attack on Iran last week.

 

How are crude oil prices changing?

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After flat trading on Wednesday, crude prices climbed on Thursday: Domestically produced West Texas Intermediate (WTI) rose $6.35 — the largest one-day increase in nearly six years — settling at $81.01 a barrel. Brent crude advanced to $85.41 a barrel, up $4.01.

 

What’s behind the prices?

• The Strait of Hormuz — a vital passage for a fifth of the world’s petroleum supply — continues to be a chokepoint with virtually no cargo ships passing through all week.
• Markets are moving higher in reaction to escalating attacks in the conflict this week.
• Diesel prices, which can impact shipping, transportation and other commerce, have skyrocketed 58 cents over the past week and now average $4.33 nationally.

 

 

The prices are expected to continue to climb.

 

Nationally and Globally

The prices are expected to continue to climb.

“Benchmark U.S. crude futures this week skyrocketed at their fastest rate in records stretching back to 1983, surging 36% to $90.90 a barrel. Many analysts believe $100 oil is fast approaching. Run-ups beyond that could raise the risk of a recession,” according to the Wall Street Journal.

“Average U.S. diesel prices jumped 51 cents a gallon over the past week, according to GasBuddy, while gasoline costs climbed 32 cents. GasBuddy analyst Patrick De Haan, on Friday, estimated Americans are collectively spending $122 million more on gas every day than they did a week ago,” writes the WSJ.