National Gas Prices Higher Than Ever, Expected to Continue to Rise

NBC: It’s an inauspicious record: For the first time, gas prices in all 50 U.S. states have hit an average of at least $4 per gallon, according to data from AAA, formerly the American Automobile Association. It’s happening as global crude oil prices trade near $110 a barrel, and, while that price is below the recent highs seen in March, the elevated national average gas price could signal higher highs ahead of the summer travel season. AAA said as refiners switch to the more expensive “summer blend” of gasoline, the seasonal formulation can add up to $0.10 per gallon depending on location (NBC).  Fox Business: According to JPMorgan, prices could surge another 37% by August, hitting a $6.20 per gallon national average. This is due to “expectations of strong driving demand” throughout the summer driving season, which spans from Memorial Day and lasts until Labor Day (Fox Business).  Reuters: The amount of crude oil in the U.S. Strategic Petroleum Reserve (SPR) dropped by 5 million barrels in the week to May 13, data from the U.S. Department of Energy showed. Stockpiles in the Strategic Petroleum Reserve (SPR) fell to 538 million barrels, the lowest since 1987… President Joe Biden in March announced the largest release ever from the U.S. emergency oil reserve at 1 million barrels per day (bpd) of crude oil for six months from the reserve in an attempt to bring down gasoline prices that have soared during Russia’s war with Ukraine (Reuters).