The price of gasoline has inched upwards over the past few days, following a significant drop from where it was about a month ago.
According to AAA, the average U.S. gasoline price on Wednesday stood at around $4.11 per gallon. That’s up from about $4.08 a week ago, but still below prices a month ago that averaged $4.26.
And many Americans are still seeing prices below $4, as the median price in the U.S. was $3.96 per gallon, according to data from the Oil Price Information Service. That’s up somewhat from the median price of $3.90 a week ago.
Gasoline prices soared following Russia’s February invasion of Ukraine and have remained high in the aftermath.
In recent weeks, they dipped down a bit as coronavirus-related lockdowns in China drove down global oil demand. Announcements of releases from strategic oil reserves in the U.S. and elsewhere were also expected to contribute more supply.
Gasoline prices are typically controlled by the price of crude oil which is used to make it. On Wednesday, U.S. crude cost about $103 per barrel.
That’s lower than the $108 per barrel where prices stood on Monday, but up from earlier in the month when prices were below $100.
Asked about the recent rise, Tom Kloza, global head of energy analysis at the Oil Price Information Service, noted that on May 15, many global traders plan to reduce purchases of oil from Russia’s state-owned oil companies because of European Union sanctions.
“The highest suppression of Russian exports is still in the future,” he said. Kloza added that the dissolution of peace talks between Russia and Ukraine has created a “geopolitical premium on crude.”
The analyst predicted that prices would remain relatively high for the next few weeks.
“The coast is not clear,” he said. “For the benefit of everybody that lives paycheck-to-paycheck I’d like to see more modest prices. I just don’t think that’s in the cards between now and the middle of May.”