Surging Gas Prices : On Thursday, U.S. gas prices averaged $3.82. This affects drivers nationwide. AAA reports a 29-cent increase from last month. Even while prices are still far lower than last year, when they went up worldwide because Russia invaded Ukraine, experts say the recent surge is unexpected.
AAA spokesperson Andrew Gross noted that fewer individuals are filling up their cars this summer.
West Coast gasoline prices are influenced by rising crude oil costs. Texas As of Thursday afternoon, US-standard intermediate oil was over $81 a barrel. OPIS global energy analysis head Tom Kloza says this is a $12 jump since July 3.
Oil prices are rising due to refinery damage from this summer’s heat and global production limitations, mainly in Saudi Arabia. The country reduced oil production by 1 million barrels per day until September. This significantly raised oil prices.
This summer’s record-high temperatures have forced refineries work harder than normal. Gross said manufacturing had been cut back for safety due to extreme temperatures, causing a shortage. Kloza said Gulf Coast refineries, which account for 10 million barrels per day of U.S. refining capacity, are running below capacity. Losing hundreds of thousands of barrels every day.
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The U.S. exports a lot of gasoline despite local demand dropping to 9 million barrels a day, 500,000 barrels less than planned for peak summer months. Kloza added that some companies are struggling, which benefits those that function smoothly.
Russia and Saudi Arabia, major oil producers in the OPEC+ coalition, have decreased production, affecting oil prices. Saudi Arabia’s extension of production restrictions and similar agreements by other OPEC+ members are expected to impact pricing substantially. Better economic prospects and lower inflation may increase global oil prices.
Refinery maintenance and supply shortages affect gas prices. California had the priciest petrol at $5.03 per gallon. Washington and Oregon followed with $4.99 and $4.64 per gallon. However, Mississippi’s average gas price was $3.33, followed by Louisiana and Alabama at $3.44 and $3.45.
Storms could shut down refineries, which could raise gas prices, but experts don’t sure. If tropical storms and hurricanes are kept out of the Gulf of Mexico, the rest of the year may be quieter.
Getting the most miles per gallon helps gas-savers. Maintaining proper tire pressure, using cruise control, not overfilling the petrol tank, and removing unnecessary items from the trunk can help. These tips can reduce the financial impact of rising gas costs.