Gas hits $4 a gallon in the US

(CMR) The average price for a gallon of regular gas in the United States hit $4 Sunday, the highest level since 2008 when gas reached a record $4.11 per gallon. The price could surpass the record as prices continue to surge amid Russia's attack on Ukraine.

The AAA national average stands at $4.01, up 9 cents a gallon since Saturday's reading, and up 47 cents, or 13%, since before Russia invaded Ukraine 11 days ago. The daily weekend increases are larger than any one-day jump in price since Hurricane Katrina slammed the US Gulf Coast and damaged much of the nation's oil and gas producing regions in 2005, sending prices soaring, CNN reported.

According to CNN, there are still some portions of the country where $4 a gallon gas is still rare. From North Dakota south to Texas, the large swath of central states have averages no higher than $3.71 a gallon.

The lowest statewide average is in Missouri, where unleaded stands at $3.60 a gallon. But that's up 28 cents, or 8%, in just the last week. There are now 18 states, plus Washington DC, where the price is $4 or greater. The Northeast and Mid-Atlantic and the West Coast, Nevada, Arizona, Illinois, Alaska, and Hawaii have statewide averages at or above $4. And three additional states, Florida, Michigan, and Indiana are less than half a cent away from the $4 mark.

The highest prices are being seen in California, where the statewide average stands at $5.29 a gallon.

“This is not the end of it…It's absolutely out of control,” said Tom Kloza, global head of energy analysis for the Oil Price Information Service.

Prices have been rising because Russia is one of the world's major oil exporters, with most of its output going to Europe and Asia. According to Energy Department data, Russian oil made up only 2% of US imports in December.

But oil is priced on global commodity markets, so the impact on global markets is felt everywhere.

Following the invasion, the sanctions placed on Russia's economy have exempted oil exports. But traders have been reluctant to purchase Russian oil due to uncertainty about closing transactions given the country's banking sector limits and concerns about finding oil tankers willing to dock in Russian ports.

There have been calls for the United States to ban the import of Russian oil. But that probably would have a limited impact on global or domestic prices since so little is being shipped to US markets, Kloza said.