Gas prices are at'record-setting summer' despite Russian invasion

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Gas prices are at'record-setting summer' despite Russian invasion

Demand isn't as strong as before COVID in 2019, when prices were much lower. Patrick De Haan, head of petroleum analysis at GasBuddy, told Yahoo Finance Live this week that he does not think that's going to change.

He said that we are not in a record-setting summer when it comes to consumption, but we are at a record-setting summer for prices. On Thursday, gas prices in the U.S. hit a new national average of $4.60 per gallon, which is more expensive than it was when Russia invaded Ukraine on February 24, according to AAA.

The shock waves were sent through the oil market that have kept oil costs elevated. A AAA spokeswoman said on Monday that seasonal gas demand is rising as more drivers hit the road despite the pain they face at the pump.

Since Russia's invasion, rising fuel prices have gone up from about $91 to $123 due to rising refining capacity in the U.S. West Texas Intermediate crude futures. On Thursday, the WTI CL F was trading above $114 per barrel. Brent BZ F was above $117.

De Haan said that even an end to the war in Ukraine doesn't necessarily mean rubber stamp price relief in the U.S. I think the best outcome that would bring the most meaningful relief is out of our control. It may be in the Russian hands, and that's a regime change. He said that if Russian President Vladimir Putin is no longer in power, it may give confidence that Western companies and countries can start doing business and buying Russian oil again. Gas prices could continue to go up here in the U.S. As noted by Yahoo Finance's Rick Newman, gas prices actually haven't hit a record high yet if you account for soaring inflation. Gas prices in 2022 would not beat the 2008 record of $4.16 if they went higher than $5 a gallon.