$7 gas "could be a reality" across the US according to renowned oil price analyst

Kristen Walters

Filling up a vehicle with gas.Natalie_B/Getty Images (Canva Pro license.)

Renowned energy price analyst Dan Dicker appeared on Yahoo Finance Live earlier this week to warn consumers that gas prices could realistically reach $7 a gallon in the near future, especially if the international conflict between Russia and Ukraine continues.

Currently, the price of oil is around $94 a barrel and climbing. According to Dicker, once the price per barrel reaches $100, consumers will start to see gas at around $5 a gallon.

Some places in California, such as Mono county, have already seen gas prices upwards of $5.58 this week. However, the current national average cost for a gallon of gas in the US is around $3.51, which is about a dollar per gallon more than this time last year.

Unfortunately, Dicker predicts that the price of oil could realistically reach $150 a barrel in the near future. If that happens, most of the US could be looking at gas prices of $7 per gallon or higher, which is more than double the current price.

The main driver of rising oil prices at the moment is the ongoing conflict between Russia and Ukraine. If the situation were to escalate, the US may impose economic sanctions on Russia that would prevent them from exporting oil throughout the global markets.

Since Russia is currently the third-largest producer of oil in the world, such action would dramatically impact the supply of oil, thereby pushing the price per barrel up even further. Moreover, even if the Russian conflict calms down, we will likely see gas prices increase due to the "seasonality shift" into summer.

The moral of the story is that you should be prepared for gas prices to continue to rise over the next several months.

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