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The United States could be on the verge of a spike in gasoline prices, with the price in some U.S. states hitting as high as $ 4 a gallon, according to AAA.
While crude oil prices have skyrocketed in recent weeks, Americans are already paying 14% more for a gallon of gasoline than they were in February, according to AAA data.
And the signs do not indicate that these prices will drop anytime soon.
“With increased demand and tighter gasoline supplies, we see more expensive prices at the pump with little relief in the coming weeks,” AAA spokesperson Jeanette McGee said in an article on AAA’s website.
Gasoline inventories for the week ending March 5 declined as demand for fuel continued to rise to levels not seen since November.
The price of WTI crude has risen sharply throughout 2021, from $ 48 per barrel at the start of the year to over $ 65 per barrel today as the supply situation begins to tighten so as demand for crude increases and OPEC + continues to restrict production.
However, the rise in gasoline prices in recent weeks in particular has been exacerbated by oil refinery outages in the United States after the devastating effects of freezing temperatures that hit Texas several weeks ago, causing widespread outages of refineries that have not yet fully recovered. To normal. As more refinery units come back online, higher gasoline prices may be eased somewhat.
And prices could reach $ 4 in some areas by the summer months – the typical height of the driving season.
The regions that have seen the largest increase in pump prices over the past week are Utah, Idaho, Missouri, Florida, Kentucky, Illinois, South Carolina, Alabama , Mississippi, and Wyoming – all of which saw double-digit increases of 10 cents. per gallon at 25 cents per gallon. Mississippi, however, is still the cheapest gasoline market in the country, according to AAA.
By Julianne Geiger For OilUSD
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