Gasoline prices have been on the rise for months now. The price per gallon has increased by nearly 50 cents and more since last year, and experts predict that gas will continue to climb through the summer. But why is this happening? And how can we stop it?
How much will gas cost next week?
The reason behind rising gas prices is simple: supply and demand. As oil production continues to decline, there is less available to meet the growing global demand for energy. This means that the price of oil must go up to make up for the shortfall.
How can I save money when filling up?
The reason behind the rise in gas prices
What should I expect from my local station?
For the 4th straight week, the country’s typical gas cost has actually decreased, falling 3.8 cents from a week ago to $4.06 per gallon today according to GasBuddy information put together from more than 11 million specific cost reports covering over 150,000 gasoline stations throughout the nation. The nationwide average is down 21.1 cents from a month earlier and $1.21 per gallon higher than a year back. The nationwide typical rate of diesel has actually fallen 1.2 cents recently and stands at $5.02 per gallon.
” We’ve now seen the nationwide typical rate of fuel decrease every week for the last month, an accomplishment we most likely would not have actually anticipated ahead of the summer season and provided the ongoing turns in Russia’s war on Ukraine. The slump might slow or might even reverse in the days ahead of the rally in oil costs continues,” stated Patrick De Haan, head of petroleum analysis at GasBuddy.
The rate of a barrel of West Texas Intermediate unrefined oil rose from its week-ago level as the EU signified it might move forward with sanctions on Russian energy, and China worked to resume some cities shut down due to Covid. Brent unrefined oil was likewise 58 cents higher in early trade to $112.28 per barrel, likewise up dramatically from last week’s $98.46 level.
According to Baker Hughes, recently’s U.S. rig count was up 4 rigs to 693, and was 254 rigs higher than a year earlier. The Canadian rig count was down by 8 to 103, or 47 more than a year earlier.
OIL AND REFINED PRODUCT INVENTORIES
Unrefined oil stocks rose last week as refiners saw usage rates plunge to 90.0%, a 2.5 portion point drop, while fine-tuned item stocks were the movers, publishing high decreases due to the downturn at refiners. Gas stocks fell 3.6 million barrels and are down 3% from the average for this time of year, while extract stocks fell 2.9 million barrels and are 17% listed below the average for this time of year.
According to GasBuddy need information-driven by its Pay with GasBuddy card, U.S. retail gas needs saw an increase recently (Sun-Sat). Nationally, weekly gas need increased 1.0% from the previous week, while need increased 1.6% in PADD 1, increased 2.3% in PADD 2, fell 2.0% in PADD 3, increased 1.1% in PADD 4, and fell 0.9% in PADD 5.
GAS PRICE TRENDS
The most typical U.S. gas cost experienced by drivers stood at $3.79 per gallon, down 20 cents from recently, followed by $3.89, $3.99, $3.69, and $3.59 completing the 5 most typical costs.
The average U.S. rate is $3.87 per gallon, down 2 cents from recently and about 19 cents lower than the nationwide average.
The leading 10% of stations in the nation are typical $4.55/ gal, while the bottom 10% are typical $3.49/ gal.
The states with the most affordable typical rates: are Kansas ($3.67), Arkansas ($3.68), and Oklahoma ($3.68).
The states with the greatest costs: are California ($5.69), Hawaii ($5.18), and Nevada ($5.07).