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IDAHO FALLS – Idaho drivers saw relief at the pump this week, but the sentiment could be short-lived – AAA says rising crude oil prices could keep gas prices high until in autumn.
The average price of regular in Gem State is $ 3.75 a gallon, two cents less than a week ago and one nickel less than a month ago. Meanwhile, the US average currently stands at $ 3.19, one penny less than a week ago and four cents less than a month ago. As the demand for fuel decreases as people stay closer to home, the pressure on the supply side increases.
“OPEC’s crude oil production has been well below expectations this year, and nearly 16% of production in the Gulf of Mexico is still offline as a result of Hurricanes Ida and Nicholas,” said the AAA Idaho spokesperson Matthew Conde. “Add to the reports that the Federal Reserve could raise interest rates in 2022 and end the bond buying program that has supported the economy since the start of the pandemic, and you have a really nervous market right now. . “
The West Texas Intermediate crude oil benchmark is currently trading above $ 75 a barrel. The price of crude is about half the price of finished gasoline.
This week, gas prices have fluctuated across the country, with the biggest changes in Michigan (+8 cents), Ohio (-8 cents), Indiana (-6 cents), Illinois ( -5 cents), Kentucky (-5 cents), Nevada (-4 cents), Delaware (+3 cents), Florida (-3 cents), Maryland (+2 cents) and Utah (-2 cents).
“The return of cold could lower fuel demand in the coming weeks, which could help balance the scales with rising crude oil prices,” Conde said. “But in the short term, drivers could easily see prices at the pump swing back and forth.”
Here is a selection of gas prices in Idaho as of September 27:
- Boise – $ 3.86
- Coeur d’Alene – $ 3.43
- Franklin – $ 3.76
- Idaho Falls – $ 3.68
- Lewiston – $ 3.40
- Pocatello – $ 3.79
- Twin Falls – $ 3.84
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