Washington, DC-The American Automobile Association (AAA) says motorists are filling some of the most expensive gasoline prices in the past year.
Due to the winter weather last week, the Gulf Coast and some Midwestern refineries were forced to close, so gasoline inventories have tightened and gasoline prices have skyrocketed.
Last week, 66% of the state average increased by double digits (10-22 cents), raising the national average by 13 cents to $2.63. This is the most expensive national average since October 2019.
“When nearly 40% of U.S. crude oil production goes offline due to refinery closures, the pump will be in pain until operations are resumed,” said AAA spokesperson Jeanette Casselano McGee.
The good news is that nearly two dozen affected refineries (if not already refined) are expected to restart operations this week. This means that regular gasoline deliveries will be resumed and fuel will be added to affected sites. Said Casselano McGee.
Last week, it was reported that refineries were shut down in Texas, Louisiana, Oklahoma, Arkansas, Tennessee and Kansas.
The Energy Information Administration (EIA) reports that gasoline inventories are 257 million barrels. Compared with the same period last year, there are only 2 million barrels, and the inventory level is relatively healthy. In this way, sufficient supplies can reach the disaster-stricken areas.
The latest demand for EIA is 8.4 million barrels per day, the highest record since the beginning of November last year. However, the American Automobile Association (AAA) expects this figure in Wednesday’s report to be lower because last week’s winter storms took drivers off the road.
Before crude oil production returns to normal, natural gas prices may fluctuate. Motorists can expect these more expensive prices to continue, but the sharp increase may subside.
At the end of the official trading session on Friday, WTI fell $1.28 to close at $59.24. Due to market concerns that crude oil demand may not rebound as expected, crude oil prices took a step back last week, but due to the impact of winter storms on supply and delivery, crude oil prices did rise at the beginning of this week.
EIA’s latest weekly report also showed that crude oil prices have risen. The report showed that total domestic crude oil inventories fell by 7.3 million barrels, bringing the supply level to 461.8 million barrels. For this week, if the U.S. Energy Information Administration (EIA) report next week shows that total inventories fall again, crude oil prices may rise, but if there are continued demand concerns, the increase in crude oil prices will be limited again.
Drivers can find current gasoline prices along the way through the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map routes, find discounts, book hotels and get AAA roadside assistance. For more information, please visit AAA.com/mobile.
The Automobile Club Group (ACG) is the second largest AAA club in North America, with more than 14 million members in 14 states, Quebec and two regions in the United States. ACG and its branches provide members with roadside assistance, insurance products, banking and financial services, travel products, etc. ACG belongs to the National AAA Federation and has 60 million members in the United States and Canada. The mission of AAA is to protect and promote freedom of movement and improve traffic safety.
For more information, get the AAA Mobile app, visit AAA.com, and follow us on Facebook, Twitter and LinkedIn.
Post time: Mar-01-2021