Wednesday, 25 April, 2018

Gas prices go back up in Baton Rouge after one week reprieve

Gas pump nozzle in a car at a filling station LI gas prices continue to climb
Marlene Weaver | 17 April, 2018, 13:54

In the USA, prices at the pump have risen steadily since the beginning of the year, going from an average of US$2.53 (CI$2.08) per USA gallon (.83 imperial gallon) for regular unleaded last month to US$2.71 average as of Monday - a 7 percent one-month increase. "However, prices could rise even more, depending on how the crude market responds to the latest news of a US missile strike over the weekend".

Internationally, prices per barrel of Brent crude - a key global benchmark for oil prices - have risen steadily since July 2017, going from US$46 per barrel to US$69 per barrel in January 2018.

At $2.71, gas prices are at their most expensive point in almost three years and continue to climb.

For perspective, crude oil was hovering around $48 a barrel back in September 2015.

As tensions mount following weekend USA missile attacks in Syria, gas prices jumped up quickly across the nation. The increase is the result of ongoing tension in the Middle East offsetting USA crude oil production and inventory.

Seasonal factors in the US also are in play now, said Patrick DeHaan, head of petroleum analysis for GasBuddy.

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"And to those of you who vilified my mother through books, on speeches, and on social media, don't even think for a minute that we have forgotten".

DeHaan said that OPEC's production cuts have removed more than 500 million barrels - about 1.8 million per day - of supply since they were enacted at the start of 2017. Refinery maintenance has gone well thus far, and gasoline supply has continued to push higher as more refiners conclude their work.

AAA Michigan says average gas prices statewide have risen about 9 cents in the past week. And California's relatively healthy economy has prompted Golden State residents to hit the road well before the traditional summer driving season.

California's high fuel taxes and fees have likewise played a role.

Michigan's lowest average price was about $2.69 per gallon in the Marquette area.

Get ready to pay more to fill up your tank.

"The seasonal surge at gas pumps is in full motion, causing the most dreaded time of year for fearful motorists, especially of what may still be coming", said Patrick DeHaan, spokesman for GasBuddy. However, we're likely in the closing innings of the seasonal rise.

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