Gas Prices Tick Higher As Oil Prices Fail To Gain Momentum

U.S. gasoline prices have edged slightly higher as oil prices have struggled to break out of the low-$80s, with sluggish U.S. demand one of the factors keeping prices range-bound. Data compiled by GasBuddy from more than 12 million individual price reports covering over 150,000 gas stations across the country has revealed that U.S. gas prices averaged 5.2 cents higher from a month ago but 5.8 cents per gallon lower than a year ago. The national average price of diesel climbed 2.3 cents in the last week to $3.83 per gallon but remained unchanged from a year ago.

“Much like last summer, the nation’s average price of gasoline has remained somewhat stuck in the mid-$3 per gallon range with a mixed bag of prices: small declines in some states and modest increases in others as we wait for what could be the next major trend,” said Patrick De Haan, head of petroleum analysis at GasBuddy. 

According to De Haan, Hurricane Beryl had no major impact on prices, although some drivers in Texas had trouble finding gasoline due to power outages. De Haan has predicted that we will continue to see small price fluctuations as news of any hurricane-fueled refinery disruptions comes in.

Oil prices have kicked in the new week on the back foot with Brent for September delivery continuing to pull back from Friday’s intraday high of $86.10 to trade at $85.05 per barrel in Monday’s session while the WTI August contract has declined $1.39 to $81.94 per barrel. Oil prices have been facing downward pressure with growing concerns about demand in top importer China offsetting support from strong demand elsewhere, OPEC+ supply restraint and geopolitical tensions in the Middle East. 

Meanwhile, the dollar has been gaining ground a day after an attempted assassination of the former U.S. President. A stronger dollar makes oil more expensive for buyers with other currencies and tends to weigh on oil and commodity prices.

By Alex Kimani for Oilprice.com

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