The national average price for a gallon of gasoline has
risen 2.2 cents per gallon over the last week to $2.91 per gallon,
according to GasBuddy data compiled from more than 10 million individual
price reports. The average price of diesel surged, adding 5.9 cents to
an average of $3.27 per gallon.
“The national average gas price has broken out of a well-established
rut, climbing above $2.90 per gallon for the first time since mid-June
on rising oil prices ahead of the reinstatement of sanctions against
Iran and OPEC failing to pump enough oil to meet robust demand,” said
Patrick DeHaan, head of petroleum analysis for GasBuddy. “We may see
prices continue to lift ahead of the mid-terms, however completely
unrelated to the elections, but due to constant threats from an
improving economy: higher demand and lower supply is tipping the balance
of the oil market and pushing prices higher. We may even soon see $3
per gallon nationally, which would be the first time since October 2014,
if oil prices continue to rise. I, along with motorists, will be
eagerly awaiting any relief at the pump, but don’t hold your breath – it
may get worse before it gets better.”
Gasoline and diesel prices have moved higher, following oil to near
four year highs on upcoming sanctions on Iran and OPEC’s hard line on
increasing oil production to meet high global demand. The U.S. economy
continues its streak of robust growth, adding a level of urgency for
more oil production as unemployment rates fell to their lowest since
1969 last week.
While data from the Energy Information Administration showed crude
oil inventories rising 8 million barrels last week, gasoline and
distillate inventories both sagged as refineries continued to perform
maintenance, reducing the flow of oil into refineries and products that
came out. Oil prices opened the week just above $74 per barrel, a slight
drop from a week ago, yet gasoline and diesel prices may continue
edging higher, still catching up to rising oil prices.
Word of a fire at Canada’s largest refinery – Irving Oil’s Saint John
refinery – pushed refined products higher in early trade Monday, and
could affect prices moving forward as well. The refinery is a large
contributor to supply in the Northeast United States and nearly all of
its product flows into that region, which may result in a large hit to
supply.
Back stateside, the national average is now at its highest level in
months with little relief in sight. Average gas prices rose in most
states, led by a 6.8 cent rise in Georgia, a 6.1 cent lift in California
and a 5.8 cent rise in Louisiana.
States with the lowest average gas prices: South Carolina ($2.59),
Mississippi ($2.60), Alabama ($2.62), Louisiana ($2.64) and Texas
($2.64)
States with the highest average gas prices: Hawaii ($3.80),
California ($3.78), Washington ($3.42), Alaska ($3.30) and Oregon
($3.28).