Fuel Prices To Climb Above $2/Gal Beginning Mid-February
Enjoying sub-$2/gallon prices at the pump? Those fuel prices will make their slow climb back up above $2 beginning later this month.
GasBuddy says that while oil prices have fallen, the wholesale prices for refined products, such as gasoline, are on the rise. Underutilization of capacity at the refinery is leading to a surplus of oil, which means less gasoline et al to distribute.
Another contributing factor to the increase in price at the pump is the annual changeover to summer-blend gasoline, whose cleanliness comes at a higher cost. Consumer demand and refinery maintenance will help push up pricing, as well.
The increase is expected to crest between April and May, likely to remain above $2/gallon for some time to come. The current average is holding at $2.04/gallon, per AAA.
A strike has idled approximately 10% of US refining capacity, and the price of crude has evidently found a bottom at about $45-50 (this will likely put an end to extensive discounting of US crude). That plus seasonal factors look like they will cause gasoline prices to rebound a bit. Looks like a good couple of quarters for US refiners.
It never went below $2 here anyway (current average is about $2.20) so I've got nothing to cry about.
Naturally, the only solution to this morass is to build a pipeline carrying concentrated low viscosity bitumen above the most fertile aquifers in the history of agriculture so some Canadian billionaires can get richer and the price of a gallon in Shanghai can come down a nickle.
All hail the prescient GasBuddy; which predicted sub $2.00 a gallon gas was coming, way back in early 2014.