S3-5: What Drives Gas Prices?

Thank you for sharing!

Gas prices have been on a roller coaster ride in 2022. In the first half of 2022, Russia’s invasion of Ukraine drove energy prices to their highest point in well over a decade. Ongoing supply chain disruptions, lingering from the pandemic, and shuttered refining capacity translated those oil prices into all-time high gas prices at the pumps for US consumers. And all of that was a major contributor to inflation. But in recent weeks, we have start to see gas prices moderate, though still near historic highs, and with it, inflation too. The hopeful question it leaves us with is – are these gas prices here to stay? To answer that, we need to better understand what drives gas prices.

Thank you for sharing!