Gas Prices Up & Down
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During the past two years, we have seen gas prices skyrocket. The cost of gas spiked significantly, reaching highs that this country has never seen before. But if you have been paying attention, these past 3 months have been different. According to NBC News, for 98 consecutive days this summer, American drivers experienced declining gas prices thanks in part to a slower worldwide demand for oil. Unfortunately, we are beginning to see prices go back up.
In late September a cut in oil production signaled by the OPEC+ group sent global crude prices higher, pushing prices back up at the pump here in the United States. Major oil producing countries including Saudi Arabia and Russia announced that they are cutting oil production by 2 million barrels per day. According to AAA, the national average for a gallon of gas climbed to $3.92 on October 10th.
Many parts of the United States will see slight increases but Californians and regions surrounding the Great Lakes are in for some super high prices. Patrick De Haan, Head of Petroleum Analysis at GasBuddy says that for the past few weeks, an onslaught of refinery issues both in the west coast and the Great Lakes is the reason why gas prices have tremendously increased. De Haan says refinery issues include undergoing seasonal maintenance along with minor issues that, when put together, greatly limits the ability for refineries to produce gas. It is the combination of planned maintenance, but more so the unexpected outage that have caused prices to soar in some regions. De Haan said that he expects prices to rise as much as $0.30 from their September lows, which would put them at around $4.00 a gallon as an average across the country.
The summer months were good for us as gas prices finally started to come down from the COVID-19 pandemic but unfortunately we are going to see prices surge again until at least the end of the year.