Retail gasoline prices in the United States changed course this week-after falling for two consecutive weeks-rising to $3.04 per gallon on Tuesday, according to the latest GasBuddy data.
The national average for a gallon of gasoline is still down 1.4 cents from one month ago, and down 23.9 cents from a year ago, GasBuddy data showed. According to GasBuddy, the attacks on vessels in the Red Sea is behind the most recent price increases.
"While last week saw the U.S. attacking Houthi militants engaged in attacks on vessels in the Red Sea, oil prices jumped, but then promptly fell as economic concerns with weak demand sapped the upward move after the U.S. and allies attacked Houthi rebels. Gasoline inventories also saw another large rise, putting some downward pressure on gas prices and leaving an opportunity for the national average to potentially briefly fall below $3 per gallon. We'll have to see if the stars finally align for such a move," said Patrick De Haan, head of petroleum analysis at GasBuddy.
While gasoline prices in the United States appear to now be on the rise, an emergency stoppage at Russia's Lukoil 340,000 bpd refinery in Nizhny Novgorod last Friday has prompted Russia to consider a ban on gasoline exports to prevent domestic shortages and is also considering purchases of gasoline on the market to supply its petrol stations. Most of Russia's diesel exports go to Turkey, the Middle East, Africa, and South America.
While the current-perhaps short-term-trend in the United States is looking at prices rising for retail gasoline, the EIA is forecasting that gasoline prices will decrease this year due to increased inventories stemming from increased refinery capacity.
By Julianne Geiger for Oilprice.com
More Top Reads From Oilprice.com:
Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group. More