[ad_1]
The biggest price hike in the US is running out of steam just in time for the start of the summer driving season.
As Memorial Day approaches, the average price of gasoline in the national market is above the peak of the year and is just above $ 2.80 per gallon.
The national average climbed 67 cents per gallon between New Year and May 4, as pump prices peaked, according to GasBuddy. This is the second largest increase ever recorded for the beginning of the year, surpassing the 2011 increase of 93 cents per gallon.
This is a similar configuration at last year's holiday weekend. Gasoline prices rose earlier in the year, but were not high enough to prevent many Americans from taking the road. Nevertheless, they are well above the levels recorded in 2016 and 2017, when a depressed oil market allowed motorists to take a break at the pump.
"While the price hike has been steep this spring, perhaps the most important factor is that in many places, gasoline prices remain well below record highs and more importantly. Still, more than 50% of the country's petrol stations sell for $ 2.99 a gallon or less, "said Patrick DeHaan, Petroleum Analysis Manager at GasBuddy, in a press release.
Nearly 75 percent of Americans plan to travel this summer, up from last year, according to a GasBuddy survey. However, 38% of survey respondents – about the same as last year – said that current gasoline prices would affect their travel decisions.
The price of gasoline has skyrocketed this year, as oil prices have risen by about 40% over last month, fueled by tighter supply and better than expected demand . Oil accounts for 50% to 60% of the price at the pump.
Drivers also had to pay more because of disruptions in the country's refineries, where crude oil is converted into gasoline, diesel and other products.
"Part of the increase is due to very high prices on the West Coast due to an extraordinary number of refinery shutdowns," said Andrew Lipow, president of Lipow Oil Associates. "By the time these refiners were put back into service, prices have dropped."
Oil prices plunged nearly 8% this week as the ongoing trade war between the United States and China raises concerns about economic growth and fuel demand. But as tensions in the Middle East continue to simmer and threaten to drive up crude oil costs, the average price of gasoline at the national level is expected to remain stuck at nearly $ 2.80 a gallon, according to Lipow. .
DeHaan expects gasoline price relief to continue at least during the first week of June, with the national average setting between $ 2.65 and $ 2.00 a year. $ 90 per gallon.
Gas prices by location, source: GasBuddy
The regions likely to experience the largest declines are those with the highest gasoline prices: the west and east coasts and the Rockies.
The rise in gasoline prices has been particularly painful in California and other Western states. Refinery outages have helped boost pump prices to more than $ 4 per gallon in California and over $ 3 per gallon in other states in the region.
"I think we end up being cheaper as a country, but it's not a great consolation for Californian citizens who are going to pay a lot more," said Tom Kloza, Global Head of Energy Analysis at Oil Price. Information Service.
Gasoline inventories in the United States are at their lowest for this time of year since 2015, but analysts say that there is enough fuel in the stocks for the country to be well stocked during the summer.
Barring a series of refinery outages or significantly higher oil prices, the onset of the hurricane season is the second major threat to US gasoline prices. The annual storm season poses risks for the US refinery center, especially on the Gulf Coast.
On Thursday, the National Oceanic and Atmospheric Association predicted an almost normal Atlantic hurricane season this year. According to NOAA forecasts, there will be 9 to 15 named storms between June and November, with four to eight hurricanes and two to four major hurricanes.
[ad_2]
Source link