Gasoline prices to rise in the US

Average gasoline prices across the country fell this week, but the savings may be short-lived - prices will rise in the middle of the week, reports NewsNation.

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Saudi Arabia says it will cut oil supplies to the global economy by 1 million barrels a day starting in July, which could drive up prices. As of June 5, the average cost of gasoline in the country hovered around $3,55 per gallon.

“Over the next few weeks, we could see the national average move up a little bit, maybe three to six cents this week,” said Patrick DeHaan, senior oil analyst at Gas Buddy. “In some states, the average price could rise 5 to 10 cents, maybe even 15 cents over the next few weeks.”

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This is because, according to the US Energy Information Administration (EIA), retail gasoline prices are mainly affected by crude oil prices and the amount of gasoline available to meet demand.

According to DeHaan, the most significant changes may occur over the next few months. According to him, the Organization of the Petroleum Exporting Countries (OPEC) production cuts could further weaken the US strategic oil reserve.

“This could become more significant in the coming months as OPEC continues to cut production,” DeHaan said.

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Gasoline prices are now down about $1,46 a gallon since reaching an all-time high in June 2023, according to data from the American Automobile Association (AAA).

Long term forecast

The US Department of Energy on June 6 presented its forecasts for oil and gasoline prices in the US next year, citing new steps by Saudi Arabia and OPEC to reduce oil supplies.

Citing these supply cuts, the EIA said it expects "some upturns" in oil prices, "especially in late 2023 and early 2024," it said. CNN.

Oil prices in the US and Brent will rise by about 2% by the end of the year compared to the May forecast. For gasoline, the EIA now sees third-quarter retail prices averaging $3,41 a gallon, just 2,7% above its May forecast.

But a greater impact will be felt in 2024. The EIA raised its forecast for US oil prices by 11,4% for the second quarter of next year and by 14,5% for the third quarter. Oil prices are now expected to average $80 a barrel in the fourth quarter of next year, up 19,4% from the previous EIA forecast.

This will lead to higher prices for consumers.

The EIA said retail gasoline prices are now expected to average $3,38 per gallon in the third quarter of next year and $3,21 per gallon in the fourth quarter, up 7,3% and 10,2%, respectively. .

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However, gasoline prices are expected to remain much lower than they were last summer, when the national average for regular gasoline topped $5 a gallon for the first time.

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