The national average pump price for a gallon of gasoline rose 12 cents over the past week to hit $3.91 on Monday according to data from AAA, fueled by high demand and tight supplies.
AAA says the recent announcement from OPEC+ stating the group of oil-producing nations would slash output by two million barrels per day led to the price of oil creeping above $90 a barrel for the first time in several weeks, contributing to rising costs at the pump. [bold, links added]
However, AAA points to other factors that are also at play.
Some regions in the U.S. have also been hit harder than others due to refinery disruptions, and after supplies were severely limited on the West Coast due to recent maintenance on a half dozen refineries.
The upper Midwest also saw pump prices spike after a deadly fire at a refinery in Toledo, Ohio.
“Gas prices in California are finally cooling off, as more refineries come back online after undergoing maintenance and the switch to cheaper winter blends takes effect,” AAA spokesperson Andrew Gross told FOX Business in a statement.
“High West Coast prices have played a major role in the recent climb in the national average for gas,” Gross continued. “Reversing this trend may help take some pressure off of pump prices.”
Meanwhile, domestic demand increased as more drivers fueled up last week.
According to new data from the Energy Information Administration, gas demand increased nationally from 8.83 million barrels a day to 9.47 million last week.
At the same time, total domestic gasoline stocks decreased significantly by 4.7 million barrels to 207.5 million.
Today’s national average of $3.91 is 19 cents higher than a month ago and 65 cents more than a year ago.
Read more at Fox Business
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