Gas prices have climbed by about 7 cents this week, largely due to problems at oil refineries. But economists are watching prices closely as an old foe begins to affect them during the Atlantic hurricane season.
The current nationwide average price of a gallon of gas is $3.75, according to AAA. That’s 11 cents less than a month ago but 56 cents more than this time last year. Prices sit $1.27 below their mid-June peak.
Current Increase Not Related to Ian
Prices fell for 99 straight days before finally ticking up last week. Fall normally brings a sudden price drop as the country switches to cheaper winter blends, then new volatility as storm season begins.
But the current rise has nothing to do with hurricanes. A fire that killed two workers left a refinery in Ohio indefinitely closed. Planned maintenance at several other refineries also lowered the nationwide supply of gasoline.
Thankfully, demand is falling with it. The U.S. Energy Information Administration reports that America’s demand for gasoline declined last week. Demand is currently lower than even September of 2020 when much of America was subject to COVID-19-related travel restrictions.
Ian Likely to Miss Most Gas Production
Hurricane Ian is headed into the Gulf Coast.
Yesterday, AAA spokesperson Andrew Gross explained, “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.”
But the National Hurricane Center’s current projected track places the storm too far east to have much impact on gas production.
Patrick De Haan, head of petroleum analysis for Gas Buddy, tweeted this morning that he is “not expecting a price rise in Florida at this time due to Ian.”
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