The U.S. gas prices are set to rise to $4 a gallon during the summer as oil rally persists!
The cost of a gas gallon could reach $4 during this summer in the US, leading to an extra weight on your finances if you own a vehicle. The gas prices have been drifting back and forth by a penny for the past week, but industry experts warn that the increase could be significantly higher now. Senior portifolio manager at Tortoise, Rob Thummel, said that the prices are predicted to hit the $4 mark and “put pressure on the inflation”.
According to the American Automobile Association (AAA), the national average for a gallon of gasoline has surged about 15 percent and it’s currently costing $3.59, settling into a similar pattern to last year’s seasonal increase. “Gas prices are a lot like seasonal temperatures. They start to rise with the arrival of spring,” said Andrew Gross, a spokesperson for AAA.
NATIONAL AVERAGE GAS PRICES – AAA
| Regular | Mid-Grade | Premium | Diesel | E85 | |
|---|---|---|---|---|---|
| Current Avg. | $3.549 | $3.996 | $4.331 | $4.028 | $2.885 |
| Yesterday Avg. | $3.535 | $3.978 | $4.316 | $4.024 | $2.879 |
| Week Ago Avg. | $3.535 | $3.975 | $4.314 | $4.051 | $2.905 |
| Month Ago Avg. | $3.346 | $3.788 | $4.126 | $4.059 | $2.735 |
| Year Ago Avg. | $3.506 | $3.929 | $4.250 | $4.204 | $2.891 |
“While we seem to be nearing a short-term peak, one word of caution for those in the Mid-Atlantic and Northeast: you haven’t yet finished the transition to summer gasoline, so you may experience some sticker shock in a few weeks, be prepared for somewhat of a punch. For the rest of the nation, so long as we don’t see extenuating circumstances, we’re likely close to a top in prices.” said Patrick De Haan, head of petroleum analysis at GasBuddy.
The production process of fuel requires more effort and time during the summer, causing it to be costlier to manufacture. That can end up adding as much as 15 cents per gallon to the final cost of higher-grade fuels. But, unfortunately, that is not the only reason behind the issue, another factor that has been guilty is the rally in global oil markets.
With the increased prices of the resource, the higher the gas price tends to become. According to Mr. Thummel, global crude inventories are at 16-month lows, and the demand in the first quarter can be higher than expected, ther worldwide oil demand is projected to reach an all-time high this year. For the first time since October 2023, West Texas Intermediate (WTI) crude prices topped $85 per barrel on the New York Mercantile Exchange. JPMorgan Chase strategists have said that, by September, Brent crude prices could get to $100 a barrel.
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