DENVER (Feb. 28, 2022) – Russia’s violent invasion of Ukraine has roiled the oil market, with crude spiking to over $100 per barrel before settling back into the mid-$90s. The increase in the global price of oil has led to higher pump prices in the United States, with the national average for a gallon of gas rising to $3.61, eight cents more than week ago.
In Colorado, the statewide average is $3.37, up three cents from a week ago, eight cents on the month, and 73 cents over this time last year. That’s the highest average recorded for this time of year since 2014, with prices expected to rise as seasonal demand grows with significant spikes possible in 2022 amid international uncertainty.
“Russia’s invasion and the responding escalating series of financial sanctions by the U.S. and its allies have sent jitters across the global oil market,” said Skyler McKinley, regional director of public affairs for AAA. “Just like the stock market, the oil market responds poorly to volatility. It’s an explosive situation, and a grim reminder that events on the far side of the globe can have a ripple effect for American consumers.”
National Trendlines
According to new data from the Energy Information Administration (EIA), total domestic gasoline stocks decreased by 600,000 barrels to 246.5 million barrels last week. Meanwhile, gasoline demand rose slightly from 8.57 million barrels per day to 8.66 million barrels per day. The increase in gas demand and a reduction in total supply contribute to rising pump prices, although increasing crude oil prices play the lead role in pushing gas prices higher.
Oil Market Dynamics
At the close of Friday’s formal trading session, WTI decreased by $1.22 cents to settle at $91.59. Although crude prices saw some fluctuations on Friday, they surged after Russia launched its military invasion of Ukraine earlier in the week. As the conflict continues, the oil markets will likely respond by increasing the price of crude oil to reflect more risk of disruption to tight global oil supplies this week. Additionally, EIA reported that total domestic crude stocks increased by 4.5 million barrels to 416 million barrels. The current stock level is approximately 10 percent lower than mid-February 2021, contributing to pressure on domestic crude prices.
Quick Stats
The nation’s top 10 largest weekly increases: Michigan (+18 cents), South Carolina (+16 cents), Kansas (+15 cents), Missouri (+15 cents), Indiana (+14 cents), Illinois (+14 cents), Tennessee (+14 cents), Georgia (+13 cents), North Carolina (+12 cents) and Arizona (+10 cents).
The nation’s top 10 most expensive markets: California ($4.82), Hawaii ($4.54), Oregon ($4.02), Nevada ($4.02), Washington ($4.00), Alaska ($3.88), Illinois ($3.85), Arizona ($3.81), New York ($3.80) and Washington, D.C. ($3.77).
Colorado Gas By the Numbers (Low to High)
Greeley
• Current Average: $3.27
• Yesterday Average: $3.27
• Week Ago Average: $3.25
• Month Ago Average: $3.17
• Year Ago Average: $2.59
• Highest Recorded Average: $4.09 (7/17/08)
Boulder-Longmont
• Current Average: $3.29
• Yesterday Average: $3.28
• Week Ago Average: $3.27
• Month Ago Average: $3.24
• Year Ago Average: $2.59
• Highest Recorded Average: $4.05 (7/18/08)
Denver
• Current Average: $3.30
• Yesterday Average: $3.30
• Week Ago Average: $3.28
• Month Ago Average: $3.21
• Year Ago Average: $2.61
• Highest Recorded Average: $4.00 (7/17/08)
Grand Junction
• Current Average: $3.31
• Yesterday Average: $3.32
• Week Ago Average: $3.29
• Month Ago Average: $3.20
• Year Ago Average: $2.64
• Highest Recorded Average: $4.23 (7/15/08)
Fort Collins-Loveland
• Current Average: $3.33
• Yesterday Average: $3.34
• Week Ago Average: $3.32
• Month Ago Average: $3.29
• Year Ago Average: $2.58
• Highest Recorded Average: $4.04 (7/6/08)
Colorado Springs
• Current Average: $3.38
• Yesterday Average: $3.38
• Week Ago Average: $3.33
• Month Ago Average: $3.31
• Year Ago Average: $2.63
• Highest Recorded Average: $3.98 (7/17/08)
Pueblo
• Current Average: $3.49
• Yesterday Average: $3.49
• Week Ago Average: $3.48
• Month Ago Average: $3.49
• Year Ago Average: $2.64
• Highest Recorded Average: $4.04 (7/18/08)
Glenwood Springs
• Current Average: $3.58
• Yesterday Average: $3.58
• Week Ago Average: $3.57
• Month Ago Average: $3.53
• Year Ago Average: $2.86
• Highest Recorded Average: $4.49 (7/19/08)
Durango
• Current Average: $3.68
• Yesterday Average: $3.69
• Week Ago Average: $3.67
• Month Ago Average: $3.58
• Year Ago Average: $2.73
• Highest Recorded Average: $4.22 (7/18/08)
Vail
• Current Average: $3.73
• Yesterday Average: $3.78
• Week Ago Average: $3.75
• Month Ago Average: $3.61
• Year Ago Average: $3.03
• Highest Recorded Average: $4.53 (7/16/08)