Gasoline prices have been rising across the U.S; setting new highs as the war gets more violence
As the war continues for its second week, the increase in the prices of Brent crude, oil, and natural gas continues. In the U.S, it is the state of California that has the highest gas price rate, estimated at $5.5 per gallon. The current stats are below the $5 price, but other stats are that other states will soon sell off their gas for + $5 per gallon. States such as Alaska ($4.7 per gallon), Hawaii ($4.8 per gallon), Oregon ($4.7 per gallon).
Today’s numbers on the subject of gas and oil prices in the U.S.
- Brent crude is $109 per barrel.
- Crude oil is $106 per barrel.
- Natural gas costs an average of $4.6 per gallon.
- West Texas intermediate oil, $108.
Traders are now asking the most important question: Does the U.S. and the Federal Reserve have an effective strategy? Lately, U.S president Biden says that the U.S has the infrastructure and high competitive campiness in the field of oil and gas that will replace and cover the Russian oil gap.
Today or any time soon, Biden will announce further sanctions against the Russian economy. In an effort to persuade his counterpart Putin to reconsider his stance on the war,
The latest data of the U.S energy information administration reviled that gas prices are increasing in all the U.S regions. Plus, the West Texas intermediate is now worth $108 per barrel, and crude oil is traded for $106 per barrel. The U.S., as the largest country in terms of GPD, manufacturing, and economy, will face great danger.
If energy prices keep their rising momentum, that would lower the supply chain’s abilities and decrease the market demand. In other words, the U.S. might be facing an early recession.
Furthermore, traders are remaining tight-lipped about this month’s interest rate hikes. All things considered, the U.S. supply chain isn’t in its best condition; in fact, it hasn’t been since the start of the COVID.
U.S. manufacturing companies still suffer from a low labor rate, which forces them to call back workers, especially the experienced ones. As the world’s largest manufacturing country, the U.S. relies more on oil and gas to operate its industries. This is where the problem comes to the surface. Energy prices are now increasing crazily, setting new highs every day. The U.S. economy can only stand for another 6 months against these high prices. But, if prices don’t cool down in the near future, that would put the U.S. and global supply chain under global inflation pressure, which will be hard to get out of.
In terms of what will happen in the next few days, exports are not certain due to the mixed stock market. The three major industries remain vulnerable to war news, and that pushes investors to safe assets. Yet, one fact remains true: this war won’t benefit any special economic zone, and the world will suffer from its consequences.
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