The price of oil surged on Sunday evening, putting pressure on gasoline prices and inflation.
West Texas Intermediate crude futures, the U.S. benchmark rose as high as $130.50 a barrel before retreating to $123.09. WTI’s highest price since 1983 was $143.67 in 2008. Adjusted for inflation that would be $186.73.
Brent crude futures, the global benchmark, traded as high as $139.13 on Sunday evening. By 8:45 P.M. EST, Brent was down to $126.30.
Oil prices have risen on fears of a full embargo against Russian oil, which accounted for about 10 percent of the global supply before the invasion of Ukraine. As well, many in the market are refusing to bid, ship, or unload Russian oil, pushing up demand for other sources. The Russian benchmark, known as Urals, has traded at a steep discount to Brent over the past week.
The national average price for a gallon of gas has skyrocketed to $4.00 – the highest national average in nearly 14 years.