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The prospect of summer motorists swarming America’s highways brings sharp hikes in gasoline prices, a sign of economic recovery and a boon to the pandemic-ravaged energy industry.
Supported by the oil recovery and growing consumer demand, gasoline pump prices in the United States have averaged $ 2.88 per gallon over the past week, according to the AAA. That’s about a third from the same time last year, when pandemic lockdowns criticized fuel consumption.
The price hike is an early season giveaway for fuel manufacturers, including Valero Energy Corp. and Phillips 66, after a murderous year, helping make energy stocks the top performing sector this year in the S&P 500. An indicator of refiner profit margins, calculated from the spread between futures on the S&P 500. gasoline and crude oil recently hit their highest level in three years at over $ 24 a barrel.
Drivers are already paying well over $ 3 a gallon in some states. In California, the most expensive market, average prices are $ 3.88, according to AAA. Motorists in Mississippi, Texas and Ohio, on the other hand, pay closer to $ 2.60. Gas prices vary widely due to factors such as tax policies and proximity to pipelines.
Some analysts see more gains to come. Prices tend to climb closer to summer, when millions of Americans are on vacation and oil refiners mix in more expensive fuel that doesn’t evaporate in the heat.
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