Gasoline prices in the United States rise to the highest level in 7 years – News Couple

Gasoline prices in the United States rise to the highest level in 7 years

You are reading Entrepreneur United States, an international franchise of Entrepreneur Media. This story originally appeared on The Epoch Times

Prices of regular gasoline in the United States rose to a new seven-year high, although a slight drop in domestic demand meant the latest rise was the smallest increase in a month.

For the first week of November, the national average gallon of regular gasoline rose to a seven-year high of $3,390, up less than a cent from $3,383 the previous week, according to the US Energy Information Administration (EIA), which indicated that gasoline demand It fell last week from 9.63 million to 9.32 million barrels per day.

Chief Petroleum Analyst at GasBuddy Patrick de Haan He said in a post on Twitter On November 1, the national demand for gasoline fell last week by 0.4 percent.

“Average #gas prices seem to have commanded roughly $84 for oil as prices stabilize. The way we go from here depends on changes in the supply/demand balance,” de Haan said in a separate post.

The AAA said lower demand for gasoline helped slow the pace of price increases, while it predicted that as long as crude oil prices remain above $80 a barrel, pump prices will continue to rise.

“We’ve finally seen a slight decline in domestic gasoline demand, which may indicate that the post-Labor Day seasonal easing has been a bit delayed this year,” AAA spokesman Andrew Gross said in a statement. “And if the recent steady increase in crude oil prices takes a rest as well, consumers may benefit from the pump with smaller price increases.”

Historically, retail gasoline prices tended to peak in late summer, when people drive a lot, with demand waning in the fall. EIA expects lower demand to eventually catch up with prices. According to the agency’s latest short-term energy outlook, retail gasoline prices are expected to average $3.21 a gallon in October before dropping to an average $3.05 a gallon in December, an encouraging sign for drivers hoping for a break at the pump. .

Meanwhile, crude oil prices rose around $85 a barrel on Tuesday, not far from multi-year highs, buoyed by signs that demand is still outstripping supply from OPEC and other producers.

Brent crude rose 20 cents, or 0.2 percent, to $84.91 a barrel by 5:10 am New York time, while US West Texas Intermediate crude rose 14 cents, or 0.2 percent, to $84.19.

“Global demand for oil is healthy and supply is trying to catch up,” said Tamas Varga of BVM oil brokerage. “These efforts are not bearing fruit.”

The price of Brent crude rose more than 60 percent in 2021, hitting a three-year high of $86.70 last week, as demand recovered and the Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia, OPEC+, slowly eased record production cuts.

“Demand for crude oil is expected to rise as the winter months approach,” said Naim Aslam of AvaTrade. “On the other hand, the offer is expected to remain the same.”

OPEC+, which cut production by 9.7 million barrels per day or about 10 percent of daily demand in 2020, is committing to gradual monthly production increases of 400,000 barrels per day, despite calls for more from the United States and other consumers.

The coalition is expected to do just that at its next meeting scheduled for Thursday.

The Energy Information Administration expects WTI prices to average $68.48 a barrel in 2022, down slightly from $68.48 in 2021, while Brent crude prices are expected to rise to an average of $71.91 a barrel next year from $71.38 This year.

Reuters contributed to this report.

by Tom Ozymec

Tom Ozimek has an extensive background in journalism, deposit insurance, marketing, communications and adult education. The best biblical advice he’s heard is from Roy Peter Clark: “Hit your target” and “Leave the best for last.”

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