According to the latest data from the American Automobile Association (AAA), average gasoline prices in the United States are now above $5 a gallon in more than a dozen states, as prices continue to climb to new record levels during the intense summer driving season.
Main facts
- Maine ($5.00 a gallon), Massachusetts ($5.00) and New Jersey ($5.02) all topped the $5 mark on Tuesday, according to the AAA.
- These three states join 10 other states with gas prices above $5, according to the AAA: California ($6.37), Nevada ($5.53), Hawaii ($5.48) , Oregon ($5.46), Washington ($5.46), Illinois ($5.45), Alaska ($5.42), Michigan ($5.17), Arizona ($5.16) and Indiana ($5.15).
- Overall, the AAA estimates the national average gasoline price to be $4,919, a 61% increase from a year ago.
- Fuel price tracking site GasBuddy estimates the national average price of gasoline to be $4.943 per gallon, and also reports that 13 states are above the $5 mark.
The context
The average gasoline price in the United States first hit a record high of $4,104 on March 15, according to GasBuddy, just three weeks following Russia invaded Ukraine. Prices climbed $4.33 in March before stabilizing and then surging in May, setting a new all-time high of $4.374 on May 16 and rising steadily ever since. Much of the price spike was due to soaring crude oil prices and tight supply: U.S. gasoline inventories were down 27 million barrels from February, according to Energy Information. Administration. AAA spokesman Andrew Gross said in a statement Monday that demand from drivers has remained high despite high prices at the pump.
What to watch out for
When the national average gasoline price exceeds $5. Patrick De Haan, head of oil analysis at GasBuddy, tweeted on Monday that he expects prices to break that milestone by Friday, although he said on Tuesday that slight declines in prices oil might postpone this deadline. Natasha Kaneva, head of the global commodities strategy team at JPMorgan, wrote in a note last month that the average gasoline price might hit $6.20 a gallon nationwide by August.
Against this backdrop of record prices, the White House announced last week that President Joe Biden was planning to travel to Saudi Arabia to meet Crown Prince Mohammed bin Salman, a major political reversal for Joe Biden that has drawn many reactions. . Joe Biden is expected to ask Saudi Arabia to increase oil production further following the Saudi-led OPEC+ alliance said last week it would increase production by 648,000 barrels per day in July and August .
Article translated from Forbes US – Author: Derek Saul
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