In addition to $90 oil prices, the futures market predicts that American consumers will face much more agony at the pump. According to the research, Gasoline futures on the NYMEX are trading at their largest premium over crude oil for this time of year in nine years.
The Gasoline futures price was roughly $18.50 per barrel above oil on Thursday, as refiners in the United States began their maintenance season. The largest premium for futures over crude since 2013 indicates that motor supplies may be tighter than expected this summer, when demand is projected to rebound to pre-COVID levels in the United States.
According to John Auers, executive vice president of Turner Mason, Gasoline consumption in the summer of 2022 will likely be similar to that of 2019, which “was near to peak e demand.”The Energy Information Administration (EIA) reported on Wednesday that total motor Gasoline stocks in the United States grew by 1.3 million barrels in the week ending January 21.
Meanwhile, gas costs in the United States continue to grow. According to AAA statistics, the national average price of a gallon of regular Gasoline is $3.348 as of January 27. This is up from $3.286 a gallon a month ago, and compares to $2.408 per gallon paid by Americans at this time last year.Oil prices have risen by roughly 13% since the beginning of 2022, owing to strong global demand and geopolitical risk premiums resulting from Russia-Ukraine tensions and attacks on the UAE by Iran-aligned Houthis.