AAA – Gasoline Prices Keep on Increasing

The on-going rise in the current gasoline price continues to bother many drivers.

For the present week, consumers in almost half the country including Delaware, Maryland, DC and New Jersey face year-over-year increases in prices at the pump. If this upward movement goes on, energy analysts worry that the currently high gasoline price compared to last year will soon be seen in states like Virginia and Pennsylvania.

At the end of last week, drivers nationwide found themselves spending an additional three cents compared to the same time last year. Because of this, OPIS analysts say that over fifty percent of the nation may possibly see year-on-year price increases by the middle parts of the month.

To make matters worse, the current gasoline price average is higher by 9 cents versus the past week alone. That disturbing trend may continue until autumn starts, said analysts. Drivers keep on observing self-serve kiosks very closely, especially after the huge price surge in July, which reached a high of 17 cents. The latest gasoline prices were higher by 29 cents compared to the same time in the past month.

This week is the seventh consecutive week that gas prices have increased, and analysts are identifying the usual causes of the jump in gas prices today. Some of the main factors they are looking at include the set of mishaps in major refineries nationwide, domestic and international economic reports, Syria’s serious political unrest, on-going Middle Eastern tensions and worries of Tropical Storm Ernesto’s effects on the Gulf of Mexico’s oil rigs. Aside from all these, the crude oil price per barrel also kept on rising at the end of last week’s trading in the NYMEX to $92.87.

The recent rise in the gas price today is partly caused by a positive economic report and a wider bullish sentiment for both U.S. commodities and equities. Aside from this, supply interruptions in the Midwest, particularly Wisconsin’s Enbridge pipeline shutdown, have pushed prices in the state higher and caused the rise to also spill over into other regions nearby.

By: Chris Termeer