Hit the road now, gas price watchers say by Daniel J. Graeber Washington (UPI) May 17, 2016
U.S. retail gasoline prices have been relatively stable against an increase in oil prices, but are likely set for a rally in the coming days, analysis finds. Motor club AAA reports a national average retail price for a gallon of regular unleaded gasoline at $2.23, about 1 percent higher than this time last week. That's compared with a 15 percent increase in the price for crude oil, which accounts for the bulk of what consumers pay at the pump. "The national average price of gasoline increased slightly over the past week, and it is likely that prices are heading for a new 2016 high in the coming days," AAA said in a weekly retail market report. "Gas prices are rising due to more expensive crude oil costs brought about by wildfires in Canada and supply disruptions in other oil-producing countries." Political crisis in Venezuela, coupled with violence in Nigeria and wildfires in Canada, have put supply-side pressures on oil prices, while some indicators suggest demand may be increasing in India and China. All three of the oil-producing nations in crisis are major suppliers to the U.S. market. For the Midwest in particular, AAA said retail prices are seeing a rise in response to Canadian wildfires, which impacted roughly 1 million barrels per day worth of crude oil production. Drivers in Illinois are seeing an average price that's 10 cents per gallon higher than the national average price as regional refiners struggle to keep up with demand against the shortage in supplies. On the retail side, AAA said demand is moving up as summer driving season approaches and more consumers start taking advantage of gasoline prices that are nearly 20 percent, or around 50 cents, less than this time last year. According to data from the U.S. Energy Informational Administration, consumer demand last week hit its highest level since August. Most analysts suggest the price for crude oil, down about 25 percent from one year ago, are on the rebound as markets return to a balance between supply and demand. This may indicate retail prices at the pump may be at their lowest in a decade before a rebound next year. Patrick DeHaan, a senior analyst with GasBuddy.com, said consumers may want to test the strains on demand and hit the road while prices are still supportive for travel. "I don't see our current environment of a healthy economy and low gas prices repeating itself again soon, so my advice to motorists is simple: Don't delay your summer travel plans," he said in an emailed statement. By this time next year, DeHaan said the retail average may be closer to $2.70 per gallon.
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. |