Gas prices in both the United States and Europe hit new highs Wednesday, with average prices per gallon in California topping $6, compared to over $9 in Norway and Denmark as Russia’s war on Ukraine plays out in the global energy sector.
On Wednesday, the U.S. national average at the pump rose to $4.567, up from $4.523 yesterday, and up from $3.043 a year ago, according to AAA. That’s a more than 50% rise in gas prices in a year.
In California, gasoline hit an average Wednesday of $6.05, up from $6.021 yesterday, and $4.135 a year ago.
The continued spike in gasoline prices in the United States prompted JPMorgan on Tuesday to warn that the explosive combination of Russia’s war on Ukraine and American summer driving demand could push gas prices even higher.
“There is a real risk the price could reach $6+ a gallon by August,” Natasha Kaneva, head of global oil and commodities research at JPMorgan, told CNN on Tuesday.
??“With expectations of strong driving demand … US retail price could surge another 37% by August,” JPMorgan analysts noted.
In a Monday statement carried by CNBC, AAA spokesperson Andrew Gross said high oil prices and a lack of refining capacity were driving prices at the pump, noting that “even the annual seasonal demand dip for gasoline during the lull between spring break and Memorial Day, which would normally help lower prices, is having no effect this year”.
In Europe, drivers are faring even worse, with Global Petrol Prices showing $7.70 per gallon in the UK, $8.25 per gallon in Germany in some areas and over $9 per gallon in Norway and Denmark.
Norway topped $9.6 per gallon on Wednesday, compared to Finland, which was nearing the $9 mark, and the Baltic country of Estonia was over $7.7 per gallon.
The highest price of petrol in the world on Wednesday was recorded in Hong Kong, at $10.966 per gallon.
By Charles Kennedy for Oilprice.com
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Charles is a writer for Oilprice.com