US Gas Prices Inch Higher as Oil Gets Expensive
Gas prices at the pump rose over the past week in the wake of higher oil prices, with experts foreseeing more increases as long as oil costs remain elevated.
The national average price for regular gas has risen by $0.08 over the past week, from $3.58 a gallon to $3.66 a gallon as of April 14, according to data from American Automobile Association (AAA). Compared to a month back, prices have jumped $0.20. Since March 29, the national average gas price has risen every single day. AAA blames the “main culprit” to be the high cost of oil, which is the key ingredient of gasoline, according to a press release on April 13. Oil is currently trading above $80 per barrel.
“When the cost of crude oil crosses the $80 a barrel mark, that puts a lot of upward pressure on what we pay at the pump,” said Andrew Gross, AAA spokesperson. “And as long as oil costs remain at the current level, drivers will likely see incremental price increases for now.”
California, where gas costs $4.90 a gallon, is the most expensive state, and Mississippi is the cheapest, with gas at $3.17 per gallon. Out of 50 American states, seven had gas prices exceeding $4 per gallon.
In the one week between April 6 and April 13, Arizona, Indiana, Nebraska, North Dakota, and South Dakota and saw the largest increase in gas price averages.
Gasoline Stocks, Rising Oil Prices
According to data from the Energy Information Administration (EIA), gasoline demand dropped to 8.94 million barrels per day (bpd) in the week ended April 4, down from 9.3 million on March 31. Meanwhile, gasoline stocks dropped from 222.6 million barrels to 222.2 million during this period.
“Lower demand would typically push pump prices down; instead, elevated oil prices have pushed them higher. If oil prices continue to rise, pump prices will follow suit,” AAA said.
In the international market, Saudi Arabia and OPEC+ crude oil producers have announced additional production cuts of 1.16 million bpd. At the same time, China has been importing large quantities of oil following its economy reopening. These factors have contributed to boosting oil prices.
“The price of energy will go up,” James Hill, CEO of MCF Energy, told The Epoch Times. “This is a major cutback and significant with China coming out of their COVID lockdown and becoming a competitor for the current energy supplies.”
Research and business intelligence company Rystad Energy estimates that oil prices could top $100 per barrel in the second half of 2023.
Downplaying Production Cut Impact, Boosting Domestic Energy Output
The Biden administration has downplayed the impact of OPEC+ production cuts. Back in October 2022, President Joe Biden threatened Saudi Arabia with consequences if OPEC+ were to continue with production cuts.
During a press briefing on April 5 following the latest OPEC+ cuts, National Security Council spokesman John Kirby insisted that the Biden administration’s responses to these two incidents weren’t inconsistent since the events are not alike.
“Your question presupposes that with every muscle movement, at whatever interval, we have to react in exactly the same way,” he said when pressed about disparate responses. “The situation is different now than it was last year, and I stand by everything that we said about it.”
Last month, House Majority Leader Steve Scalise (R-La.) announced a new reform package aimed at restoring America’s energy independence and protecting American families.
“To lower costs for Americans and grow our economy, we need to get the federal government out of the way,” McCarthy said, according to a press release on March 9.
“The Lower Energy Costs Act will fast-track American energy production, and includes comprehensive permitting reforms that will speed construction for everything from pipelines to transmission to water infrastructure.”
“And it ensures that the critical minerals needed for advanced technologies come from America—not China,” he added.
