The Sunday Review
Normally, prices At the gas The dead of winter sees the pump drop as bad weather prevents Americans from driving. Something is going on that’s unusual this Année: Gas prices are rocketing higher.
Regular is the average national rate gas jumped to $3.51 a gallon According to AAA, Friday was the fifth of June. Although that’s a far cry from the record of $5.02 a gallon last June, gas prices They have risen by 41 cents over the last week, and 12 cents this week month.
All told, the national average has climbed by more than 9% since the end of last year – the biggest increase to start a year since 2009, according to Bespoke Investment Group.
AAA states that certain states have seen greater economic gains in recent years. monthThe following are available: Colorado (98cs), Georgia (7cs), Delaware (62cs), Delaware (62cs), Ohio (60cs) and Florida (59cs).
Unusual wintertime jump in gas American drivers who already struggle with high price tags are starting to notice the value of price. prices It is also available at supermarkets. This could also undermine the progress made in the last year’s inflation crisis.
Why? are gas prices jumping?
It’s not because of demand, which remains weak, even for this Time of year
Supply is the real problem.
A series of disruptions at American refineries, which produce gasoline and jet fuel, caused by the extreme weather that hit the United States towards the end last year has kept the economy going.
For example, Colorado’s sole refinery, the Suncor refinery outside of Denver, was disrupted by freezing temperatures. It was damaged and set on fire when the refinery attempted to restart.
Suncor has indicated that refinery – which Lipow Oil Associates says represents 17% of the Rocky Mountain region’s refinery capacity – could be offline for at least weeks.
This helps to explain why gas prices The price of a gallon in Colorado has risen by almost $1 over the previous year month.
Extreme weather has also affected refineries in other countries. US refineries are Bespoke reports that 86% is the current capacity. This represents a significant drop in performance from the mid-90% range at December’s start.
Oil is more than just a problem for the refinery. prices They have risen higher and are now able to drive prices Northward to the pump
US crude oil prices have fallen to $71.02 per barrel since December 9th, when they were at their lowest point. prices On Friday, the price of oil rose by 16% to $82.30. The increase is due in part to increased worldwide demand after China’s Covid-19 policy relaxes.
Gleichzeitig sind die oil markets are The Strategic Petroleum Reserve does not provide massive oil supplies. Biden’s administration is now refocusing its efforts on refilling the stockpile, instead of releasing unimaginable amounts of oil.
It is possible that certain refinery issues may only be temporary. This means that supply will soon catch up with demand.
Some experts are bad. are Warning gas prices It is possible that the price will continue to rise.
Andy Lipow, President of Lipow Oil Associates expects that national average will reach $3.65/gallon going into spring.
Patrick De Haan is the head of Petroleum Analysis at GasBuddy. He worries about springtime’s typical jump in. prices will be moved forward.
“Instead of $4 a gallon happening in May, it could happen as early as March,” De Haan told The Sunday Review. “There is more upside risk than downside risk.”
Returns up to $4 gas It would cause pain for drivers, and it could also affect consumer confidence. Pain at the pumps could also complicate inflation as the Federal Reserve considers slowing its rate hike campaign.
The Cleveland Fed’s Inflation Nowcasting model is now pointing to a 0.6% month-over-month The Consumer Price Index saw an increase in January. It would be a remarkable acceleration in comparison to the 0.1% decrease. prices Between November and Dezember