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America… Fuel prices are at their highest levels in 8 years

Fuel prices in the United States rose to their highest level in eight years, with crude oil prices rising due to concerns related to geopolitical tensions in Eastern Europe, according to a report published by the American “CBS News” network.

The average price of a gallon of gasoline was $3.47 on Wednesday, the highest level since 2014, according to US Department of Energy figures.

The hydrocarbon pricing equation includes: crude oil prices, refining costs, transportation costs, in addition to federal and state taxes.

Although fuel prices usually fall in the first months of the year, international concern over tensions between Russia and Ukraine has pushed crude oil prices to more than $90 a barrel.

Tom Kloza, an analyst specializing in energy price analysis, said that the rise in fuel prices “was not driven by demand, but rather by supply, as crude oil prices moved based on geopolitical foundations, as there are many scenarios about: What if Russia invades Ukraine and imposes international sanctions? ” on the table.

Russia produces more than 10 percent of the world’s oil, according to 2020 data, which may be affected by the potential conflict with Ukraine and international sanctions that the West threatens Russia.

Oil-producing countries are slowly increasing their production, but global oil production is still below pre-coronavirus levels, amid a slowdown in consumption.

In early February, the 23 countries affiliated with the “OPEC Plus” alliance led by Saudi Arabia and Russia announced a new slight increase in production.

These countries confirmed in a statement that they would increase their production by 400,000 barrels per day in March, the same amount as in previous months.

In a call that US President Joe Biden had with Saudi King Salman bin Abdulaziz Al Saud, on Wednesday, the two leaders affirmed the commitment of the United States and Saudi Arabia to ensuring the stability of global energy supplies, and King Salman noted the importance of “maintaining the balance and stability of oil markets.”

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