Denver metro gas prices spike as global tensions rise
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Metro Denver can kiss goodbye its low gas prices.
Why it matters: The increases have an immediate effect on motorists' pocketbooks and mood about the economy.
Driving the news: Denver gas prices have spiked since the start of the year, and more increases are expected following the U.S. and Israel strikes on Iran and oil market fears of extended geopolitical upheaval.
By the numbers: The average gas price in the Denver metro area is $2.87, about 50 cents more since December.
Yes, but: Denver's rate remains below the national average of $3.05.
The big picture: The national average price of unleaded gas topped $3 per gallon this week, according to AAA.
- Tuesday was the biggest single-day spike since March 4, 2022, according to GasBuddy analyst Patrick De Haan.
- And it marks its highest point since Oct. 9, according to data supplied to Axios by the Oil Price Information Service.
Between the lines: Tom Kloza, a longtime oil analyst now working for Gulf Oil, tells Axios he expects the national average price to reach a high of $3.25 to $3.50 in the coming weeks.
- Prices will jump even higher in the western U.S., Kloza predicts.
- That stems from a sudden increase in petroleum prices as traders fear disruption in crude supplies from the Middle East. The price of West Texas Intermediate crude is up about $8 per barrel since the attacks began.