Rising Oil Prices, Bigger Gas Bills
This summer’s driving season is likely to be the most expensive since 2014, according to analysts from the Oil Price Information Service (OPIS). Drivers may pay an average of $2.79 a gallon for gas—a nearly 11 percent increase over the current national average, according to AAA. Prices in some cities are likely to top $3 a gallon.
The impact on freight is expected to be more dramatic.
Prices almost always climb in March as travel increases and refiners do maintenance work. But this year’s price jump could be bigger, OPIS says.
Rising oil prices are the clearest culprit: Brent crude prices have averaged $67.55 a barrel this year so far—the highest since 2014 when Brent averaged $107.88 a barrel through Feb. 26.
Demand is also rising both in the U.S. and abroad. U.S. refineries have become a fuel lifeline to much of the world, particularly in Mexico and South America which have been hobbled by operational issues.
And U.S. refiners that put off maintenance projects during Hurricane Harvey will likely have to get to that work now, OPIS says.
Source: Wall Street Journal