Nationwide gas prices set to rise as oil soars, industry analyst says

Gas prices are expected to rise slowly nationwide as the price of oil nears its highest level in seven years, according to an industry analyst.

Over the next two weeks, prices are likely to rise in “most parts of the country,” Patrick De Haan, head of petroleum analysis for GasBuddy, told FOX Business. However, the Great Lakes region “is likely to experience more pain before other regions,” he added.

CLICK HERE TO LEARN MORE ABOUT FOX BUSINESS

Oil prices surged on Monday after OPEC and allied oil-producing countries maintained their gradual approach to restoring reduced production during the pandemic, agreeing to add just 400,000 barrels per day in November. West Texas Intermediate crude oil hit a seven-year high, rising $ 1.45 to $ 79.07 per barrel on Tuesday.

“With wholesale gas prices up significantly, we already saw prices climb yesterday in Indiana,” De Haan said, noting that prices will soon increase in Michigan, Ohio and parts of the United States. Illinois.

De Haan previously tweeted that prices already appeared to increase to $ 3.29 per gallon in areas of Indiana.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

According to De Haan, large jumps are common in the Great Lakes due to a behavior called “price cycling.” This means that prices in the region “generally go up or down the fastest compared to other regions,” he added.

However, drivers across the country are already seeing an increase. The average price of gasoline in Los Angeles has already hit its highest level, $ 4.42 per gallon, since 2012, according to De Haan, who noted that prices would likely continue to rise.

On top of that, unusually high natural gas prices are driving some power producers in Asia to switch from natural gas to petroleum-based products, “which is supporting oil prices,” De Haan said.

National average gasoline prices have held steady at around $ 3.20 per gallon in recent days, according to AAA. The average is 97 cents more than a year ago.

Additionally, De Haan said it “is becoming increasingly unlikely that we will see seasonal relief as we traditionally do.”

Currently, there is a stronger demand for petroleum products like gasoline and jet fuel due to the fact that driving and flying have resumed around the world after the coronavirus restrictions were relaxed.

The Associated Press contributed to this report.