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U.S. Gasoline Prices Hit Six-Month High

U.S. Gasoline Prices Hit Six-Month High

Apr 4, 2024

U.S. Gasoline Prices Hit Six-Month High

The United States has experienced a notable rise in gasoline prices, reaching the highest national average seen in nearly six months. As of April 4, the average price for a gallon of gasoline escalated to $3.58, marking the steepest rate since October 14 of the previous year, according to Patrick De Haan, the head of petroleum analysis at GasBuddy.

De Haan pointed out that the current national average is 7.2 cents per gallon more than it was at the same time last year. Compared to one month ago, prices are approximately 20 cents higher, with the AAA data indicating an average of $3.352 at that time. This time last year, the average was slightly lower at $3.507 per gallon.

This recent increase in prices breaks a period of stability observed the previous week, where the national average held steady at $3.51 per gallon. De Haan warned that regions such as the Mid-Atlantic and Northeast could still see a surge in prices due to the switch over to summer gasoline formulations.

Contributing to the price hike, West Texas Intermediate (WTI) crude oil prices have surpassed $85 per barrel amid signals of a tightening global supply. Demand for gasoline has also been on the rise, propelled by warmer weather and travel around the Easter weekend.

The Energy Information Administration (EIA) reported a decrease in gasoline stocks, which suggests a surge in demand. There was a significant decline of 4.3 million barrels in the week ending March 29, with a production average of 10 million barrels per day (bpd). This contrasts with an inventory increase of 1.3 million barrels from the week before, when the production average was 9.2 million bpd.

Additionally, De Haan reported a substantial rise in U.S. gasoline demand by 8.3% from the preceding Friday. The week-to-date demand, spanning Sunday to Friday, was 1.7% higher than the previous week and 3.5% above the four-week average for the same period.

Originally reported by OilPrice


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