Russian aggression toward Ukraine prompts oil traders to bid up the price of crude oil, leading to the highest U.S. gas prices in eight years

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The actions of tyrants have ripple effects beyond their individual domains. Not that most Americans know or care, they’ll just blame President Biden or whoever their favorite political punching bag is. CBS News -  

Gasoline prices across the U.S. are surging to the highest level in eight years as the price of crude oil rises, spiked by worries about geopolitical tensions in Eastern Europe.  

The average price of a gallon of gas hit $3.47 on Wednesday, according to AAA, a jump of eight cents from the previous week. Gas prices this week are at their highest since October 2014, according to the U.S. Energy Department. 

While gasoline prices typically dip in the first months of the year as Americans wait out cold weather indoors, this year has been different. Oil traders, anxious over the ongoing tensions between Russia and Ukraine, have bid up the price of crude oil to more than $90 a barrel. 

"This has not been demand-driven, but it has been supply-driven, and recently we've seen crude oil prices move on the basis of geopolitics. A lot of what-if scenarios: what if Russia does invade Ukraine and we have sanctions?" Tom Kloza, global head of energy analysis for the Oil Price Information Service, told CBS MoneyWatch. 

Russia produced more than one-tenth of the world's oil in 2020 — a sizable portion that would be disrupted with military conflict or threatened sanctions by the U.S. and its allies. 

While the price of Brent crude oil, the international benchmark, has fallen from earlier in the week, is was at $91on Wednesday, or 50% higher than it was at the start of last summer.  

"Higher oil prices will eventually lead to higher prices at the pump," AAA spokesperson Andrew Gross said. (Read more) 

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