Gas is presently averaging $2.99 per gallon. This is down 2 cents from the previous week, but still 4 cents higher than a month before. Last week, crude oil prices dropped, causing gasoline prices to fall. The crude futures market is absorbing the news that OPEC and its oil-producing partners gradually raise output this year. Prices fell last week due to initial reports, but it’s uncertain where the crude market will go from here.
For the time being, drivers may take a break from rising Gas prices, with the likelihood that retail prices will drop a few cents this week. This year, gasoline prices have increased by a total of 82 cents. The cost of petroleum has been the primary cause of the increase at the pump. As the global crude oil supply struggled to keep up with surging demand, domestic oil prices have risen by as much as 57 percent since January.
Domestic oil prices hit a new high of $75.25 per barrel last week, setting a new high for 2021. Since October 2018, that was the highest daily average price. However, by mid-week, that price had vanished, plummeting a total of 4% by Friday to close the week at $71.81 per barrel. The drop came from reports that OPEC and its allies plan to gradually resume production of 5.8 million barrels per day after making substantial cuts last year.
According to our friends at OPIS, the increase is unlikely to completely alleviate fuel market pressure this summer as demand grows in the wake of the COVID-19 outbreak. However, while this news may not provide immediate comfort at the pump, it may help keep prices from rising further.