Average national gas prices have risen for the sixth consecutive day, as one energy expert predicts a “notable jump” in the coming weeks.
The price for a gallon of gasoline in the United States started to rise again in the past week, after a 99 day decline during the peak summer driving season.
There have been a number of refinery fires and shut downs over the past few weeks that have led to a disruption in the gas supply.
Prices have been increasing since the morning of Sept. 21, when the price ticked up to $3.681 per gallon, a 7 cent rise from the day before.
The average price a year ago was $$3.187, according to AAA.
Gas Prices And Global Recession
The rise in oil prices pushed up gas costs across the board, due to the Russian invasion of Ukraine in late February and the Western-led sanctions that followed in its wake, which led to global energy shortages.The slackening of domestic gas and oil production, and the promotion of green energy under the Biden Administration have not made things better for American consumers.
U.S. oil prices, which account for over 50 percent of what consumers pay at the pump, have since dropped from their June peak.
West Texas Intermediate (WTI) crude was about $120 a barrel back in June, while the international benchmark was higher.
WTI prices fell 5.5 percent to $78.91 on Sept. 26 after hitting an eight-month low on Sept. 23.
The American benchmark was down about 7 percent for the week, the fourth straight week of declines and the first time it fell that low since December 2021.
The U.S. dollar hit its strongest level in more than two decades on fears that rising interest rates would cause a serious global economic downturn.
Seasonal factors such as the end of the summer driving season and the end of the government mandated transition to Winter blends have alleviated some of the pressure.
Crude Supplies and the Energy Market
However, two developments could push oil prices back up again and continue the trend of higher costs at the pump.The recent decline in crude prices had led the Organization of Petroleum Exporting Countries (OPEC) to consider reducing its production while the European Union is expected to impose a ban on Russian oil and gas.
The start of the hurricane season is another cause of rising gas prices. which have disrupted U.S. energy production and supply in the past.
A major storm is expected to hit the Gulf Coast and Florida later this week.
“Hurricane Ian could cause problems, depending on the storm’s track, by disrupting oil production in the Gulf of Mexico and impacting large coastal refineries,” Gross said.
The energy market also tends to experience high volatility during the Fall season, which can lead a swing in gas prices.
Meanwhile. analysts at both JPMorgan Chase and Goldman Sachs Group have projected that prices will move back above $100 a barrel during the fourth quarter.
