Oil Prices Dropping Quickly Despite Ongoing Russia-Ukraine Conflict
Oil prices fell below $100 barrel Wednesday, down from the 14-year-high of $130 per barrel it sat at just last week. However, gas prices remain mostly unchanged. The national average price for regular gas dropped by just two pennies from Monday to $4.31 a gallon on Wednesday, according to AAA.
"It bears reminding that the cost of oil accounts for about 50% of what drivers pay at the pump," AAA spokesman Andrew Gross said in a statement Monday. "This war is roiling an already tight global oil market and making it hard to determine if we are near a peak for pump prices, or if they keep grinding higher. It all depends on the direction of oil prices."
Although gas prices will take some time to reflect the drop in oil costs, it is a step in the right direction. Some drivers for oil's latest price dip include a possible return to the Iranian oil supply and the fact that Europe is not going to wean off Russia's oil supply immediately, according to Market Watch.