Clipper Oil: Latest Fuel News - US Gasoline Prices Jump To New Record Of Over $4.80 Per Gallon

Latest Fuel News

June 2022

US Gasoline Prices Jump to New Record of Over USD4.80 per Gallon

US gasoline prices surged by as much as $0.26 in just one week to hit over $4.80 per gallon on Monday as inventories continue to drop and refinery capacity is lower than before COVID, according to fuel-savings app GasBuddy.

As of June 6, the national average price of regular gasoline stood at a record-high $4.865 per gallon, per AAA data, and it looks like it’s a matter of days before the national average hits the $5 psychological threshold.

This is an additional headache for the Biden Administration which has been seeking—to no avail—to bring prices down via various measures, including massive releases of crude from the Strategic Petroleum Reserve (SPR) or increased ethanol blending requirements. Continue reading here (Source: OilPrice).

Why US Gas Prices Are at a Record, and Why They'll Stay High for a Long Time

Russia’s invasion of Ukraine is a major reason that US drivers are paying record prices for gasoline. But it’s not the only cause of the spike.

Numerous factors are pushing prices up, with regular gasoline hitting a record $4.87 a gallon Monday according to AAA’s survey — up 25 cents a gallon in just the last week.

Gas prices were already expected to breach the $4 a gallon mark for the first time since 2008, with or without shots fired in Eastern Europe or economic sanctions imposed on Russia. But now the national average is expected to hit $5 a gallon within the next two weeks, said Tom Kloza, global head of energy analysis for the OPIS, which tracks gas prices for AAA. Continue reading here (Source: ABC 17 News).

US Consumer Spending on Gasoline Has Doubled in 12 Months

The average US household’s gasoline expenditure has jumped to $5,000 a year over the past 12 months, from $2,800 this time last year, according to new research. And there does not seem to be a sign of relief in sight. Yardeni Research reported the figures, as cited by CNBC, adding that since March this year alone, annual spending on gasoline by households had risen by more than $1,000—in March the figure stood at $3,800.

Meanwhile, prices are still rising, breaking record after record. Earlier this week, the national average hit an all-new all-time high of $4.567 per gallon. That’s up from $3.043 per gallon a year ago, according to AAA data. In California, the average gasoline price reached $6.05, up from $4.135 a year ago.

“No wonder that the Consumer Sentiment Index is so depressed. The wonder is that retail sales have been so surprisingly strong during April and May,” Yardeni Research said in a note. Continue reading here (Source: OilPrice).

Biden Sees No Quick Fox on Gas Costs, Weighs Russian Crude Price Cap

The US has no immediate way to slash the price Americans are paying for gasoline, and is considering other proposals such as trying to set a lower price for sale of Russian crude, President Joe Biden said.

“The idea we’re going to be able to, you know, click a switch and bring down the cost of gasoline is not likely in the near-term, nor is it with regard to food,” Biden told reporters at the White House on Wednesday.

High prices for gas and food have emerged as an explosive political problem for Biden, whose party faces the loss of one or both chambers of Congress in November’s midterm elections. Continue reading here (Source: Bloomberg).

OPEC+ to Stick to Oil Rise Plan Despite EU Sanctions

OPEC+ is set to stick this week to its monthly modest oil output increases despite seeing tighter global markets, five OPEC+ sources said on Wednesday as the group fast approaches its maximum production capacity.

Oil prices rallied above $124 per barrel this week following new EU sanctions against Russia over its invasion of Ukraine and China's recovery from the latest COVID-19 lockdown.

The world's most industrialised countries, known as G7, called again this week on OPEC to help ease a global energy crunch that worsened as a result of Western sanctions imposed on Russia. Continue reading here (Source: Reuters).