The prospect of summer drivers crowding US highways is generating sharp gains in the price of gasoline, a sign of economic recovery and a blessing for the energy sector devastated by the pandemic.
Raised by the oil recovery and rising consumer demand, gasoline prices at US pumps reached an average of $ 2.88 a gallon last week, according to the AAA. This marks a 30% increase over last year, when the pandemic blockages affected fuel use.
The price increase is a gift from the beginning of the season for fuel manufacturers, including Valero Energy Corp. and Phillips 66, after a hard-hitting year, helping to make energy stocks the best-performing sector this year on the S&P 500. A representation of profit margins at refineries, calculated from the difference between gasoline and oil futures crude oil, recently approached its highest level in three years, at more than $ 24 a barrel.
Some analysts see additional gains ahead. Prices tend to rise closer to summer, when millions of Americans drive to vacation spots and oil refineries mix a more expensive fuel that doesn’t evaporate in the heat.
Rising gas prices join the recent spike in other commodities, such as copper, in addition to improving data on jobs and spending, as signs that the economy is gaining momentum. At the same time, high fuel prices are affecting some consumers and businesses, while increasing concerns about rising inflation.