Gas prices moving higher alongside oil prices by Daniel J. Graeber Washington (UPI) Dec 20, 2016
U.S. gasoline prices continue to rise along with crude oil, though some refinery issues and supply levels could create some fluidity, a retail market report finds. Motor club AAA reports a national average retail price for a gallon of regular unleaded gasoline at $2.25 for Tuesday, up a fraction from the previous day and 4 cents, or 1.5 percent, higher than last week. Gasoline prices are moving in parallel to crude oil prices, which are 2.4 percent higher than this time last week. "Prices continue to rise due to market expectations of tighter availability following the announcement of an OPEC deal to cut oil production that is scheduled to start in January 2017," AAA said in a weekly market report. The national average price for gasoline has increased for 21 out of the past 22 days. By region, the West Coast remains the most expensive in the nation, with California reporting the highest state average price for Tuesday at $2.67. Despite the trend, AAA reports prices are somewhat less regionally than they were one month ago, with California in the Top 10 when it comes to discounts from last month. AAA notes some refinery and pipeline issues in the region may elevate prices, though most of those, like BP's shutdown last week of its Olympic pipeline to Washington and Oregon, were resolved late last week. Markets there could move quickly, meanwhile, on reports that gasoline production on the West Coast is at a one month high and almost 2 million barrels per day higher than last year. The Great Lakes states continue to hold the distinction of the most volatile market in the country, with some regions flipping almost 10 percent after posting steep declines. Illinois reports the highest price by region at $2.32 per gallon, a price that's more than 5 percent higher than last month. Part of the fluctuation may be in response to retailers looking to recover after the region was posting lower prices late last week. Michigan, for example, saw prices drop almost 6 cents, but move the opposite direction overnight. AAA notes crude oil prices, and therefore gasoline prices, could move on market reactions to OPEC decisions. Already, some states previously pressured by lower oil prices like North Dakota are recovering and that could put a ceiling on how high oil prices could go because of supply-side dynamics. A December report from the U.S. Energy Information Administration said the national average price for retail gasoline should be around $2.10 in January.
Related Links All About Oil and Gas News at OilGasDaily.com
|
|
The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us. |