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A recent CNBC report said Americans pay the highest gas prices in the past seven years, and some cities have gas prices as high as $ 5 a gallon.
CNBC noted that Americans pay the most at the pumps due to the steady rise the country has experienced over the past year.
According to the American Automobile Association (AAA), a federation of automobile clubs across North America, the national average price Wednesday for a gallon of gasoline was $ 3.22.
Wednesday is the highest national average since “at least” October 2014, CNBC reported, but in some cases states are paying significantly more. In California, the average price is more than a dollar more than the average, standing at $ 4.42 for a gallon of gasoline, and in Mono County, Calif., The price of a gallon of gasoline. gasoline is over five dollars a gallon.
In this July 19, 2021 photo, President Joe Biden talks about the economy and its infrastructure program in the State Dining Room of the White House in Washington. A new poll from the Associated Press-NORC Center for Public Affairs Research reveals that 54% of Americans believe the economy is in bad shape. (AP Photo / Andrew Harnik)
CNBC detailed the rise in gas prices and the slowdown in demand that caused the price to rise:
The rise in gas prices follows a rebound in oil. West Texas Intermediate crude futures, the benchmark for U.S. oil, were trading around $ 77.60 a barrel on Wednesday, after crossing $ 79 in the previous session for the first time since November 2014 A year ago, a barrel of WTI was around $ 40 a barrel.
Demand for petroleum products fell in 2020 as the pandemic shut down economies around the world, prompting producers to turn off the taps. Although demand picked up as people hit the road and business activity picked up, supply remained limited. Producers were slow to get the barrels back to market, and Hurricane Ida exacerbated the imbalance between supply and demand by taking production in the Gulf of Mexico offline.
Faced with rising oil prices, some thought the coalition of oil-producing countries known as OPEC + would choose to increase production. Instead, the group decided on Monday to stick to a pre-agreed schedule to get 400,000 barrels a day back to market in November.
For consumers who drive a car, the higher price of oil leads to higher gasoline prices. This has translated into over a dollar more for gas over the past year.
Follow Jacob Bliss on Twitter @jacobmbliss.
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