Price Futures Group senior analyst Phil Flynn on what factors are contributing to rising gas prices.
The national average for gas prices could rise by 10 to 20 cents per gallon in the coming weeks as a result of “extreme cold shutting down millions of barrels a day in refinery capacity” in Texas, according to GasBuddy’s chief oil analyst , Patrick De Haan.
“How much we will see will depend on how fast or slow the affected refineries are able to get back up and running,” De Haan told FOX Business. “In addition, continued improvement in the COVID-19 pandemic is also likely to continue to help drive demand recovery.”
OIL AND GAS PRICES JUMP AS DEEP FROZEN PARALYSIS TEXAS
DeHaan data reveals that gas prices in the United States have risen for the sixth consecutive week, with the national average gaining 2.6 cents a gallon last week to $ 2.50 a gallon on Tuesday. The national average price of diesel soared 7.2 cents last week and stands at $ 2.68 a gallon.
GasBuddy data is compiled from more than 11 million individual price reports, covering more than 150,000 gas stations across the country.
Part of the reason for the price increase according to De Haan is “to improve demand in the United States”, and noted that the increase “has nothing to do with who stays in the White House, but with how many drivers are filling their tanks. daily. “
“This situation will last as long as OPEC continues to restrict its oil production, creating the situation where demand is recovering faster than supply,” he added. “The situation is not going to improve – just wait until spring – the national average is likely to rise another 10 to 50 cents per gallon if oil production does not respond to the continued recovery in demand.”
EXXON MOBIL, ARAMCO TEXAS OIL REFINERIES TEMPORARILY DISCONNECTED FOR UNEXPECTED MIDDLE WINTER FREEZING
Gasbuddy data indicates that crude oil prices have increased by 15% in the past two weeks. A barrel of West Texas Intermediate crude oil rising to $ 60.55 a barrel during Monday’s trading session, from $ 57.44 last Monday and 15% from $ 52.68 two weeks ago . Brent crude also rose by $ 63.11 a barrel on Monday morning, up from $ 59.93 a week earlier.
Prices continued to rise on Tuesday, with West Texas Intermediate crude rising 58 cents, or 1%, to close at $ 60.05. Natural gas rose 22 cents, or nearly 7.5% – due in large part to the freezing temperatures that hit the country from the Ohio Valley to the Gulf Coast.
A February 2010 report by the Energy Information Administration revealed a drop of 6.6 million barrels in crude oil inventories, while gasoline inventories increased by about 4.3 million barrels.
According to GasBuddy, oil stocks are now just 2% above the five-year average for this time of year, while gasoline stocks are maintaining the five-year average, but below levels a year ago. Distillate stocks fell 1.7 million barrels, but remain healthy at 7% above the five-year average.
The company’s report also noted that refineries increased production last week, using 0.7% to 83% capacity. The implicit demand for gasoline has also increased to almost 90,000 barrels.
MEET FOX BUSINESS ON THE MOVE CLICKING HERE
The latest GasBuddy gasoline demand figures show that domestic demand increased by 1.90% in the week ending February 13. Demand from the East Coast increased by 3.41%, while demand in the Midwest was another 0.95%, the Gulf Coast rose 0.85%, the Rocky Mountains region by 3.52% and the West Coast registered an increase of 1.70%.
GasBuddy data showed that the East Coast probably saw a recovery in gasoline demand due to “the previous week’s decline as a major snow event hindered free travel in the region.”
The most common price of gasoline in the United States found by drivers rose 10 cents per gallon to $ 2.39 per gallon, according to the website’s fuel and data app. The average price in the United States is $ 2.41 per gallon, up 3 cents from last week and about 9 cents below the national average.
CLICK HERE TO READ MORE ABOUT FOX BUSINESS
The states with the lowest average prices include Mississippi ($ 2.15), Louisiana ($ 2.17) and Texas ($ 2.19), while the states with the highest prices are California ($ 3.45), Hawaii ($ 3.31) and Washington ($ 2.87).
Jonathan Garber of Fox Business contributed to this report