Mar 15, 2022 - Economy & Business
Oil prices suddenly declining, raising hopes gas may follow
- Nathan Bomey, author of Axios Closer
Oil prices have suddenly reversed course, falling almost as quickly as they rose in the early days of the Russian invasion of Ukraine.
- Why it matters: The about-face raises the prospect of a corresponding drop in gas prices, which hit a record high last week.
By the numbers: The price of West Texas Intermediate — the U.S. benchmark crude oil — tumbled below $97 per barrel on Tuesday, having fallen more than $33 from its peak about a week ago.
- That's only a few dollars more than it was priced at when the invasion began.
- The national average price of gasoline — which tends to move in lockstep with oil prices, lagging only a few days as the market catches up — has leveled off in the low $4.30s over the last several days, according to AAA.
What we're watching: Whether Russia moves to cut off oil or gas supplies from Western customers, which could lead to another price spike.