DENVER (KDVR) — Energy prices are looking like they did in 2014.
Russian President Vladimir Putin recognized two separatist regions in eastern Ukraine as independent from Ukraine, then ordered Russian troops into the regions. In response, President Joe Biden announced a series of heavy economic sanctions against Russia, following suit with Western European leaders.
The global economy has already experienced some fallout from Putin’s actions, particularly concerning energy prices. The price of Brent crude oil approached $100 per barrel on Tuesday, the highest it’s been since 2014.
Inflation has sent gasoline prices back in time as well.
In the week ending Feb. 14, the U.S. price per gallon of any type of gasoline was $3.58. National gasoline prices haven’t passed $3.50 per gallon since the fall of 2014.
General inflation has been colliding with increased post-pandemic travel demands to spike gasoline prices by more than 250% since their pandemic low point in April 2020.
The Ukraine-related jump in crude prices will have some impact on already-rising gas prices. Historically, the two are tightly linked in their peaks and valleys.
Brent crude prices do not always predict gasoline price swings in the short term, nor do they predict the intensity of price swings. In the two years between 2012 and 2014, gas prices often remained stable through periods of drooping crude prices and vice versa.
Since 2015, though, gasoline prices have moved in lockstep with crude prices over months. If this spike in crude oil price is just a blip, there’s a chance Coloradans could avoid paying more at the pump. If crude prices stay where they are, gas prices will likely follow.