The nationwide average price of a gallon of regular gas has climbed 10 cents in a week. Currently, it sits at $3.38, according to AAA.
The culprit? Global oil prices, says AAA spokesperson Andrew Gross. “The primary factor in this latest increase is the higher cost of oil, which accounts for more than half of what you pay at the pump.”
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We aren’t driving more. Americans used 7.5 million barrels of oil the week ending Jan. 6 (the most recent week for which data are available). That’s down 400,000 barrels from 2021’s already-low numbers.
But global oil prices have spiked “as fears of a global economic recession eased,” AAA says.
Patrick De Haan, head of petroleum analysis for Gas Buddy, notes that other factors could drive an increase in the coming weeks. Some refineries slow production during winter months to perform routine maintenance ahead of a production push for warmer weather. This year, De Haan sees “what’s likely to be a significant refinery maintenance period ahead of summer.”
Demand for oil is also increasing in China as COVID-19 lockdown measures ease.
“I see the upward trend continuing,” he says.
