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Record gas prices for this long 'unprecedented': AAA

According to the American Automobile Association (AAA), gas prices have hit new all-time highs for the past 11 consecutive days amid the U.S. energy supply shortage, which noted the streak of record prices as the pump is “unprecedented.”

Speaking to Fox News Digital, Andrew Gross, the national spokesperson for AAA Inc., revealed that drivers can expect high prices throughout the summer, especially as the war in Ukraine continues.

The national average for a gallon of gasoline was $4.59 on Friday, a slight increase from the previous day and a new record.

Thursday’s record was 16 cents higher than the week before, nearly 50 cents higher than the month before and $1.55 more compared to the same time last year.

All 50 states had national sales prices of more than $4 a gallon on Thursday, according to AAA, with Oklahoma offering the cheapest gas at $4.03 a gallon and California offering the most expensive gas at an average of $6.06.

Tighter supply and higher demand have driven up gas prices, according to the association.

“Demand is on the rise,” Gross told Fox News Digital, explaining what is contributing to the high prices.

“Normally we’re a little quiet at this time of year. There’s often a demand pause between spring break and Memorial Day and we had a little bit of it about two weeks ago, but last week there was actually an uptick, which is very unusual.” I don’t think I’ve ever seen that.”

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“You have both this increased demand and these really high oil prices,” he added, pointing out that “the price of oil is stuck in this strange range of $100 a barrel to $110 a barrel.”

“It encounters resistance when it hits $110 and then it drops back down, but then it encounters resistance to drop below $100 and so it’s in this uncomfortably high area,” Gross continued.

Oil prices fell on Friday as investors worried that the slowdown in global economic growth and the central bank’s tightening monetary policy could affect the recovery in fuel demand.

Brent July futures fell 59 cents to $111.45 a barrel Friday morning, while the US June benchmark fell 56 cents to $111.65 on the last day of the first month.

tickerSecurityLastChangeChange %
USAGEUNITED STATES OIL FUND LP80.58+1.29+1.63%
BNOUNITED STS BRENT OIL FD LP UNIT31.86+0.57+1.82%

Oil prices spiked above $130 a barrel in March amid concerns over supply disruption from Russia, the world’s No. 2 exporter.

“To put it in perspective, in August a barrel of oil was about $64, so we’re $40 plus more and that creates a lot of upward pressure because oil makes up about 60% of the cost of what you pay at the pump. So how the more expensive the oil, the more expensive the gasoline,” Gross noted.

AAA said volatile crude prices combined with supply/demand dynamics are likely to continue to exert upward pressure on gas prices.

“The oil market is a lot like the stock market and we’ve seen the stock market everywhere,” Gross said.

“It’s crazy and the oil market works the same way,” he added, pointing to the wild swings in the markets lately. “It’s so volatile right now and it’s very headlines. It doesn’t take much to shock the oil market.”

He noted that “much of the downward pressure in the oil market recently has been due to COVID and all these fears in China about China are on lockdown because any kind of economic slowdown in China is really impacting oil because China’s really is the world’s largest oil consumer.”

“So if they start consuming less, that’s more oil for everyone,” Gross continued.

Officials have maintained a “zero-COVID” approach in China, but as the number of new cases plummets, authorities have slowly and deliberately relaxed restrictions.

On Thursday, officials announced that the closed-off Chinese metropolis of Shanghai will reopen four of its 20 subway lines and dozens of bus lines this weekend as the region slowly eases pandemic restrictions that have been in place for more than six weeks.

Gross also pointed to the Russian invasion of Ukraine as “the main generator for all these upward prices, because the war just injected all this strange volatility into the market.”

He explained that “there will be much less Russian oil on the world market” as a result of the war and stressed that Russian oil is “difficult to replace” as the country is a major producer of the raw material.

Record gas prices come as the European Union is poised to impose oil sanctions on Russia during the Kremlin’s invasion of Ukraine. It also comes amid record high inflation, with the consumer price index reaching 8.3% in April, hovering near the 40-year high of March.

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The European Commission, the EU’s executive, on 4 May proposed a sixth package of war sanctions, including a ban on oil imports from Russia. The committee chair noted that getting everyone’s agreement “will not be easy”.

On Monday, a small group of countries continued to oppose the ban on Russian oil imports.

The White House has blamed Russian President Vladimir Putin for record high gas prices in the US, even coining the hike as the “#PutinPriceHike” and vowing that President Biden will do everything he can to protect Americans from “pain at the pump.” “. †



Gas prices have hit new records for the past 11 consecutive days, according to the American Automobile Association. (iStock/iStock)

Biden announced last month that the Environmental Protection Agency will allow sales of E15 gasoline — gasoline that uses a 15% blend of ethanol — nationwide this summer. Biden has also decided to release 1 million barrels of oil per day from the Strategic Petroleum Reserve for the next six months. The president also calls on Congress to make companies pay compensation for idle oil wells and non-producing acres of federal lands, with the aim of encouraging new production.

Gross noted that the government’s measures will help “a little”.

“Driving habits don’t seem to be changing, so that’s something to keep an eye on over the coming weeks and months,” he added. “With these higher prices, when are people going to decide I’m going to stay at home or ride a bike.”

“It’s a really interesting time now,” he emphasized.

“I think a lot of people are probably looking at electric vehicles much more seriously now,” Gross added.

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He also noted that Memorial Day weekend will still attract millions of drivers, despite higher gasoline prices.

AAA predicts that 39.2 million people will travel 50 miles or more from home during the holiday weekend, up 8.3% from 2021, but still below pre-pandemic levels in 2019, when 42.8 million people traveled by car.

Gross explained that the high cost of gas is likely to “price out some travelers”.

Tyler O’Neil of FOX Business and Associated Press contributed to this report.

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