National average gas prices rose for the eighth consecutive week.
Crude oil has hit its highest price in nearly three years as the pandemic recedes and global demand soars.
U.S. crude oil was at $ 71.50 a barrel on Monday – its highest price since October 2018 – and Brent crude, the international benchmark, topped $ 73 a barrel.
Crude oil prices have risen steadily since the start of the year as businesses reopen and demand for air and car travel rebounds. On Monday, US crude oil was about $ 23 a barrel more expensive than in January.
Meanwhile, the national average price of gasoline has also increased for eight straight weeks to reach $ 3.07 per gallon on Monday, according to data from fuels tracking site GasBuddy. This national average price is 98 cents higher than a year ago and 3.7 cents higher than a month ago.
“We have seen the national average price of gas continue to rise as oil prices hit $ 71 per barrel, the highest since 2018, and gasoline demand continues to rebound,” said Patrick De Haan, responsible for petroleum analysis for GasBuddy. in a report.
“Strong demand for gasoline as states and cities reopen will likely continue to be a major factor in keeping gas prices high, even as oil production increases in the coming months,” De Haan added. . “With most of the additional supplies being swallowed up very quickly, gas prices are likely to remain at high levels for the foreseeable future.”
De Haan recommends that motorists shop around for the best prices “whenever they drop below half a tank”.
Jeanette McGee, spokeswoman for the American Automobile Association, added in a separate statement that motorists are paying an average 37% more to refuel their tanks now compared to the start of the year. Data compiled by AAA puts the national average gas price at $ 3.08 – one cent above GasBuddy’s estimate.
“Prices for the rest of the month are likely to push higher, but if crude production increases, as expected, it’s possible to see some relief at the pumps later this summer,” McGee said.
The states that saw the largest weekly changes in average gasoline prices were Michigan (which saw an average increase of 15 cents per gallon), Florida (which jumped 11 cents per gallon) and ‘Ohio (which climbed 10 cents a gallon).
Last Friday, the International Energy Agency said in a report that it expects global demand for oil to return to pre-pandemic levels by the end of 2022. The IEA has called on the Organization of the Petroleum Exporting Countries to “turn on the taps to keep the world’s oil markets adequately supplied.” The group had previously announced that it would gradually increase its production by 2 million barrels per day, a pace that will be determined by market conditions.
The AAA said in a statement Monday that the move to increase production could lower gasoline prices, but motorists likely won’t see any impact at the pump until mid-July.